India’s NAL gears up for the big leagues

India's National Aerospace Laboratories (NAL) are not easy to find. Located on the same road as Hindustan Aeronautics just outside Bangalore, the complex has a nondescript steel gate that sits well back from the road and is marked with a small sign.
Beyond lies a large campus of buildings interspersed with overgrown parkland and large, gloomy trees that overshadow the road. Half a dozen rifle-armed guards man a ramshackle security office, where visitors must surrender their mobile phones in return for a pass.
Despite its bucolic location, NAL is at the forefront of India's aviation sector, second only to HAL. It is also the cradle of the country's regional commercial aircraft ambitions. NAL's focus is primarily commercial - although technologies developed there have been used in military aircraft, such as the indigenously developed Tejas light combat aircraft.
NAL's mandate is: "To develop aerospace technologies with a strong science content, design and build small and medium-sized civil aircraft, and support all national aerospace programmes."
Founded in 1959, NAL has more than a dozen laboratories. Areas of focus range from avionics to testing and repairing aerospace structures. The labs helped with initial studies on the Gas Turbine Research Establishment's Kaveri engine - the long-delayed, indigenous powerplant intended for the Tejas.
Every indigenous Indian aerospace vehicle has been tested in NAL's aerospace windtunnel. It is also the body responsible for carrying out aircraft failure analyses and accident investigations. Over the years, it has investigated more than 1,100 cases.
Although its aircraft development ambitions are at an early stage, NAL hopes it will soon make a leap into the crowded regional aircraft market with a regional transport aircraft, the RTA-70. NAL's Hansa-3 single-engined light aircraft is India's first all-composite aircraft. Intended primarily to replace older aircraft at India's flying clubs, the Hansa-3 is being co-produced with private company Taneja Aerospace & Aviation.
NAL has also led development of the Saras, a 14-seat multi-role transport aircraft designed primarily for the military. It is working with another private-sector firm, Mahindra Aerospace, on the NM5-100, a five-seater turboprop aimed at air taxi, training, tourism and medevac roles.
Despite the issues with Saras, NAL is contemplating a far more ambitious project with the RTA-70. Although it was envisaged as a turboprop aircraft, NAL now says the RTA-70 could be powered by turbofan engines, with the government viewing the aircraft as a stepping stone to larger models. NAL is studying the two options, and will deliver a report to the government in April 2011, after which a decision will be made.
31/01/11 Greg Waldron/Flightglobal.com

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Airfares descend from stratosphere

Mumbai: Flyers are heaving a sigh of relief with airfares, which had skyrocketed in November-December, getting restored to affordable levels.
MiD DAY checked the airfares for five of the busiest domestic destinations from Mumbai and found that fares for tickets booked even one or two days prior to departure for the January-February busy season do not pinch the pocket.
For a traveller wanting to fly out to Delhi from the city on February 1 and wanting to return the next day, the return fare yesterday was between Rs 5,500 and Rs 7,500 (see box). The fare to Bangalore for the same dates was between Rs 6,567 and Rs 7,628.
"Yes, the fares are far cheaper now. In fact, when we tell our clients what the fare is, they think we are joking," said Saurabh Kumar, a travel agent from Andheri.
Sources close to the Civil Aviation Ministry revealed that the airlines are keeping the airfares low also because they don't want to antagonise the new civil aviation minister, Vayalar Ravi. He had expressed concern about exorbitant fares within hours of taking up the portfolio.
31/01/11 Bipin Kumar Singh/MiD DAY

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Indian Aviation Recovers After Global Economic Downturn

New Delhi: The Indian aviation industry is rebounding from the financial difficulties it faced during global economic downturn. The country’s domestic carriers are expected to buy hundreds of planes in the coming years to cope with the growth in air travel.
As air passenger traffic dropped by 30 per cent in 2009, many Indian domestic carriers put expansion plans on hold and slashed staff salaries. Cash-strapped airlines even asked for a government bailout.
But in the past year, the aviation industry has recovered from the crisis triggered by the global financial downturn. As the economy returns to a high growth path, flights are again filling with passengers, and domestic carriers are posting profits.
The first concrete signal that the industry is back on its feet came in early January, when private carrier IndiGo placed a $15 billion order for 180 aircraft with Airbus. It is the largest single order of Airbus planes and is expected to be delivered between 2016 and 2025.
Besides IndiGo, other airlines also plan to buy new planes to cope with growing demand.
Aviation experts say the orders are an indication of the potential growth of the industry. Sanat Kaul is chairman of the International Foundation for Aviation and Development in India and a former top official in the aviation ministry.
28/01/11 Anjana Pasricha/VOA News.com

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I-T seeks TDS information from airlines, TV channels

Mumbai: The income-tax department is conducting a TDS (tax deduction at source) survey on several Indian and foreign airlines and entertainment television channels.
A source said Jet Airways, Air India, Emirates and GoAir were among the airlines under the scanner.
A Jet Airways spokesperson, however, said the tax authorities had merely sought information on the passenger fee collected from fliers. This was corroborated by Air India's spokesperson.
Airlines collect Rs228 from each flier and pass the money on to the airport operator. The security component, or 65% of the fee, is paid to the government of India while the remainder is retained by the airport operator as facilitation fee.
28/01/11 Sunchika B Pandey/Daily News & Analysis

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A Record Year of Implementations at IBS

Trivandrum: IBS Software Services, one of the leading IT solution providers to the global Travel, Transportation and Logistics industry, has recorded 2010 as the most successful year in its 13 year history in terms of software implementation at various customer sites. IBS is perhaps the only company which has developed IT solutions across all functional areas of the air transportation industry – airline passenger services, airline cargo, and airline & airport operations – offering the widest range of products by any single vendor. Its customers include some of the world’s best airlines, busiest airports, leading cruise lines, top oil & gas companies, travel distributors & hotel groups. The calendar year witnessed 55 successful ‘go-lives’ of IBS solutions all around the world – equivalent to over one per week throughout the year!
Its biggest success story is iCargo, the new generation air cargo management solution suite that was co-developed with five major carriers. In the Japanese market, traditionally dominated by local players, iCargo has emerged as the market leader. The year 2010 saw All Nippon Airways (ANA), Japan’s largest domestic airline, move over to the iCargo platform to manage their entire cargo movement including all international commercial cargo operations. This implementation was the first localized version of iCargo in production with all communication and documentation in both Japanese and English. IBS had a hat-trick of iCargo implementations in the first week of October with 3 iconic customers in 3 different continents successfully cutover on three successive days. One of these, at TIACT (Tokyo International Air Cargo Terminal, Haneda) saw the launch of iCargo JTO. This multimillion dollar investment has been carried out by IBS to cater to the unique needs of cargo ground handling in Japan. In addition to cargo, the year saw fourteen airlines switched over to IBS’ solutions for managing passenger reservations, loyalty program management, airline staff travel, crew management, MRO and fleet scheduling.
Eleven implementations had a successful closure in the non-airline space during the calendar year 2010. The largest of these was an Energy Monitoring System for a Dubai based conglomerate and the first phase of a reservation system at MSC Cruises, one of the world’s leading leisure cruise companies. IBS’ iDemand Gateway – an advanced distribution connectivity and reservation delivery platform – was adopted by leading names in the hospitality industry. During the period, IBS also completed successful implementation of iLogistics, its up-stream logistics solution suite at three operating companies of one of the world’s largest oil & gas companies.
“Our solutions manage mission critical operations where the margin for error is nil. Implementing such systems call for a high degree of precision and skill; and successfully doing so in such large numbers is indeed a remarkable achievement. For IBS, it demonstrates several things... our ability to scale up, the confidence of the industry in us as a trusted partner, fulfilling our promise to deliver outstanding value and service. Beyond everything, it shows the commitment and dedication of our staff” said VK Mathews, Chairman & CEO IBS Group.
27/01/11 PRESS RELEASE/IBS

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India's MRO industry to be worth USD 1.5 billion by 2020

Mumbai: India is poised to become the fastest growing market in the world for aircraft Maintenance, Repair and Overhaul (MRO) services over the next decade tripling its worth to USD 1.5 billion, as airline companies buy more planes to cater for the country’s rapidly growing traffic.
“The MRO spend by airlines in India now is USD 500 million and is expected to grow to USD 1.5 billion in 2020. As a result, we expect significant investment to come into this space over the next ten years,” said Vivek N Gour, Managing Director, Air Works
According to a report in Economic Times, industry experts have estimated that Indian air traffic will triple to 362 million passengers by 2021-22, by which time the country’s air carriers would have more than doubled their fleet to about 1,000 aircraft.
Experts also estimate that MRO revenues, a direct function of the number of aircraft, are growing at a compounded annual rate of 15 per cent in India, which makes this space attractive. The MRO space is a USD 45-billion market globally, of which India constitutes only one per cent.
28/01/11 TravelBizMonitor

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India's MRO industry to be worth $1.5 billion by 2020

New Delhi: India is poised to become the fastest growing market in the world for aircraft maintenance, repair and overhaul (MRO) services over the next decade tripling its worth to $1.5 billion, as airline companies buy more planes to cater for the country’s rapidly growing traffic.
“The MRO spend by airlines in India now is $500 million and is expected to grow to $1.5 billion in 2020. As a result, we expect significant investment to come into this space over the next 10 years,” MRO services provider Air Works managing director Vivek N Gour said.
Industry experts have estimated Indian air traffic will triple to 362 million passengers by 2021-22, by which time the country’s air carriers would have more than doubled their fleet to about 1,000 aircraft.
Experts also estimate that MRO revenues, a direct function of the number of aircraft, are growing at a compounded annual rate of 15% in India, which makes this space attractive. The MRO space is a $45-billion market globally, of which India constitutes only 1%.
But, according to global consultancy firm KPMG, over the next decade India is going to be the leader in this space, which is currently split between North America and Western Europe, because of higher economic growth rate that the country is going to witness.
“The fleet size in India is now reaching a critical mass where it makes sense to have a strong MRO space not just for the domestic fleet but also for international airlines. Growth of MRO in India is now a necessity than an option,” KPMG director (aerospace and defence) Amber Dubey said. Moreover, India will have no dearth of skilled manpower and has the advantage of its good geographical position, he added.
27/01/11 Anindya Upadhyay/Economic Times

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Mahindra's Five-Seat Aircraft To Launch Soon

Mahindra Aerospace said this week its new five-seat airplane, which would be India's first indigenous GA aircraft, is expected to fly for the first time next month. According to Indian news sources, the NM5-100 will sell for "20 percent less than a similar aircraft from Cessna." The company has been working for a several years in partnership with India's National Aerospace Laboratories to design the airplane, which is expected to meet FAR Part 23 standards. A larger version of the airplane also is in the works, which would seat 8 to 10.
Mahindra acquired a majority stake in Australia's Gippsland Aeronautics in 2010.
26/01/11 Mary Grady/AVweb

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More flights to remote areas likely

Indian carriers may be asked to increase connectivity to remote areas of the country in a move that could raise costs for airlines even as it aims to evenly distribute the growth in domestic air traffic, which crossed the 52mn mark last year. The aviation ministry is planning to expand the scope of existing route dispersal guidelines for airlines that define a dozen key metro routes in the country based on air traffic. Airlines have to ply at least 10% of their total metro flights on routes covering destinations that are not well connected and are less profitable, such as Jammu and Kashmir, the North-East, Lakshadweep, and the Andaman and Nicobar islands. "The traffic has increased over the years and there is a case for revising these metro routes. Kochi-Bangalore and Bangalore-Hyderabad are also at par in terms of traffic now," said a ministry official, who declined to be named. "DGCA (Directorate General of Civil Aviation) is being asked to look into it and rework."
The regulator defines high-traffic metro routes currently as Mumbai-Bangalore, Kolkata-Delhi, Mumbai-Kolkata, Kolkata-Bangalore, Mumbai-Delhi, Kolkata-Chennai, Mumbai-Hyderabad, Delhi-Bangalore, Mumbai-Chennai, Delhi-Hyderabad, Mumbai-Thiruvananthapuram and Delhi-Chennai. If, for example, Kochi-Bangalore and Hyderabad-Bangalore are added to this list, the number of flights that airlines ply on less profitable routes will simultaneously increase. Civil aviation secretary Nasim Zaidi wants the definition to be widened to cover such routes, the ministry official said.
26/01/11 Live Mint/India Infoline

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Pawan Hans has ambitious flight plan

Mumbai The state-owned helicopter operator is broadening its customer base, including via joint ventures, and ramping up its fleet.
State-run Pawan Hans Helicopters, which has emerged as Asia’s leading helicopter, is working towards building a fleet of 500 helicopters. That’s a huge increase over its current fleet strength of 41 helicopters, which have notched up more than 400,000 hours of flying and over 1,475,000 offshore landings in the western region.
The company’s strategy for this scale up: Focus on joint ventures and acquire new helicopters through government funding, internal sources and debt. Its growth strategy lays emphasis on improvements in efficiency and operations to take on competition from the private sector to consolidate its presence across the country.
R K Tyagi“The main objective of the growth strategy in this competitive scenario is to provide superior services to customers at competitive prices to the expand customer base, including the formation of JVs. The company has been acquiring new helicopters to cater to increased demands,” says Pawan Hans Chairman & Managing Director R K Tyagi.
Pawan Hans’ authorised capital is Rs 120 crore and present paid-up capital is Rs 113.76 crore, of which Rs 89.27 crore is held by the government and Rs 24.50 crore by exploration & production major Oil & Natural Gas Corporation (ONGC.
26/01/11 Sanjay Jog/Business Standard

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More flights to remote areas likely

New Delhi: Indian carriers may be asked to increase connectivity to remote areas of the country in a move that could raise costs for airlines even as it aims to evenly distribute the growth in domestic air traffic, which crossed the 52 million mark last year.
The aviation ministry is planning to expand the scope of existing route dispersal guidelines for airlines that define a dozen key metro routes in the country based on air traffic. Airlines have to ply at least 10% of their total metro flights on routes covering destinations that are not well connected and are less profitable, such as Jammu and Kashmir, the North-East, Lakshadweep, and the Andaman and Nicobar islands.
“The traffic has increased over the years and there is a case for revising these metro routes. Kochi-Bangalore and Bangalore-Hyderabad are also at par in terms of traffic now,” said a ministry official, who declined to be named. “DGCA (Directorate General of Civil Aviation) is being asked to look into it and rework.”
The regulator defines high-traffic metro routes currently as Mumbai-Bangalore, Kolkata-Delhi, Mumbai-Kolkata, Kolkata-Bangalore, Mumbai-Delhi, Kolkata-Chennai, Mumbai-Hyderabad, Delhi-Bangalore, Mumbai-Chennai, Delhi-Hyderabad, Mumbai-Thiruvananthapuram and Delhi-Chennai.
25/01/11 Tarun Shukla/Live Mint

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Turner channels to be enjoyed by air travelers at Delhi International Airport

Air travelers can view high quality entertainment programming from Turner channels that include the world’s leading global 24 hour news network CNN International; India’s number one kids’ network Cartoon Network and POGO - the favorite destination for kids and families
Turner International India . Ltd. announced a partnership with Active Media where selected content from its leading networks is now available at Terminal 3 (T3) of the Indira Gandhi International Airport at New Delhi.
Starting today, air travelers can view high quality entertainment programming from Turner channels that include the world’s leading global 24 hour news network CNN International; India’s number one kids’ network Cartoon Network and POGO - the favorite destination for kids and families.
The content plays in a daily programming loop on three of India’s first 360 degree LED screens strategically located at the food court of T3, reaching the 34 million domestic and international travelers expected to traverse the terminal annually.
Selected content includes CNN International feature programming ranging from ‘Revealed’ which brings unique profiles of the world's brilliant thinkers, creative champions and inspirational leaders, ‘Open Court’ and ‘Living Golf’ for sports aficionados or ‘Eco Solutions’, the network’s award-winning show which highlights ways to sustain and preserve our planet.
25/01/11 India Infoline

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Will take time for Air India turnaround: Vayalar Ravi

Thiruvananthapuram: New civil aviation minister Vayalar Ravi Sunday said it will not be an easy task to swing around Air India in a short period.
Speaking to the media here on his first visit to the Kerala capital after taking over the aviation portfolio, Ravi said he has been busy in the past few days holding discussions with the objective of bringing back "the lost glory" of the national carrier.
"There is no doubt that there are issues because things have not fallen in place as they should have following the merger of Air India and Indian Airlines. I have decided that before I start to do anything, I will have discussions with all stakeholders, ranging from the various unions besides the cabin crew, pilots guild, the finance sections and others," said Ravi.
"I do not wish to give a time frame to you with regard to putting back Air India to the place it should be because if I say so then you, the media will be after me once the period gets over. Please give me a little time because there are a good number of issues that have to be sorted out," he added.
Ravi was, however, non-committal if there was going to be a Voluntary Retirement Scheme programme for its employees.
"One of the biggest problem is the shortage of aircraft that Air India is facing, and among the other issues that have to be looked into is the routing aspect and the fare structures in comparison with other private airlines," added Ravi. He, however, ruled out a revamp of the present open air policy of the government.
23/01/11 IANS/Times of India

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Jet sequel after first flop

New Delhi: A government aerospace laboratory has proposed a programme to build a 70-seater jet as India’s second civilian aircraft, although its first project launched 12 years ago has yet to yield a plane certified airworthy.
The National Aerospace Laboratories (NAL), Bangalore, told the Planning Commission on Friday that it hoped to get the new aircraft certified within six years after project sanction in a new model of development and a changed geopolitical environment.
A prototype of NAL’s Saras, a 14-seater turbo-prop aircraft, touted since 1998 as India’s first multi-purpose civilian passenger plane, crashed near Bangalore in March 2009 during its 49th flight, killing two test pilots and an engineer on board.
An inquiry by India’s Directorate General of Civil Aviation (DGCA) found that the probable cause of the crash was incorrect procedure for re-lighting an engine devised by aircraft designers and adopted by the crew. The DGCA has not certified Saras yet.
“Saras was a learning experience,” said Samir Brahmachari, the director-general of the Council of Scientific and Industrial Research (CSIR), of which the NAL is a part. “It started at a time when India was facing technology denials — now things have changed.”
A number of key technologies such as aviation-grade materials and avionics components had to be developed from scratch, he said. This led to delays — and miscalculations. The first Saras prototype aircraft was a few hundred kilograms overweight. Although the NAL initiated the project with an industrial partner in Russia, the company pulled out midway, and NAL continued the programme.
In its presentation to the Planning Commission on Friday, the NAL said it would insist on industrial collaboration from start to finish in the new aircraft project. “If we don’t have industry partners, we won’t pursue it,” Brahmachari said.
22/01/11 The Telegraph

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Now, get refund on all air tickets

Chennai: Booked a non-refundable ticket and didn`t fly? You won`t lose your money any longer.
Passengers can now cancel their non-refundable air tickets until two hours before departure and get a refund of taxes, fuel surcharge, passenger service fee and user development fee. This means a flyer stands to get back Rs 1,300 to Rs 3,800, depending on the distance and the fare. Fuel surcharge varies from Rs 1,000 for a short-haul domestic flight to Rs 3,500 for a long-haul journey. Most low-cost carriers charge Rs 229 as passenger service fee and Rs 103 service tax.
The decision, a long-standing demand of flyers, was made after talks between airlines and the Civil Aviation Economic Advisory Council last month. Also, full-service airlines have cut their cancellation fees.
"This is a big relief for passengers, especially for those buying round trip tickets" said passengers association president D Sudhakara Reddy. "Those taking round trip tickets were losing money even if they missed only one leg of the journey."
Travel agents said that full service airlines have reduced the cancellation fee.
22/01/11 Times of India

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Nehru's grandchildren

Vayalar Ravi, the new minister for civil aviation, declared on assuming office that his priority would be “to improve the services on Air India and to make it a profitable airline”. He allayed the fears of Air India employees’ unions about a wage freeze and re-deployment to the airline’s subsidiaries. For good measure, he added that he would look into the de-registration of two of the airline’s 14 unions.
Mr Ravi’s predecessor, Praful Patel, had declared that he was the minister for civil aviation, not the minister for Air India. His critics would charge that he was actually the minister against Air India, given how the airline was destroyed on his watch. Indeed, Capt Gopinath of the erstwhile Deccan Aviation once charged that Mr Patel was the minister for Jet Airways — drawing a sharp riposte from the minister. Irrespective of whom you believe, there were sounds of relief from Air India when Mr Patel was moved out. The problem, though, is that the country once again seems to have a minister for Air India, more than a minister for civil aviation.
It so happens that Air India is now only the fourth-largest airline in the country. It is in danger of becoming the fifth largest, because SpiceJet too may overtake it. So the “national carrier” is no longer a critical factor in the market. In any case, reviving it is the job of the airline management. Trade union recognition, wage bills and staff deployment are all within the management’s purview — with due clearance from the airline’s board, which includes government nominees.
Besides, how exactly would a minister improve Air India’s services? Everyone knows that Air India cannot be salvaged if it does not cut costs and attract more passengers. But if the minister signals that he is on the side of the unions on key staff issues, he reduces the management’s scope of action as well as the likelihood of better service. The prospects for the airline are already dim; Mr Ravi, with all the goodwill that he has for Air India, has just made its future bleaker.
22/01/11 TN Ninan/Business Standard

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Ramesh: Pvt Airlines used for smuggling wildlife

New Delhi: Union environment minister Jairam Ramesh is to write to his civil aviation counterpart about private airlines being used for smuggling wildlife products.
Jairam Ramesh He said he’d do this after chairing the second meeting of the special coordination committee on wildlife crime. An official told the meeting said such smuggling was predominantly through two major private airlines. Ramesh asked the official, who didn’t wished to be named, to make the complaints on record.
Taking the complaint seriously, the Bureau of Civil Aviation Security asked the Wildlife Crime Control Bureau to give details so that action could be taken.
Despite the heightened security at airports, there have been several instances of airlines being used to transport wildlife products outside India.
Besides, the airlines, smuggling or trafficking of wildlife articles through Foreign Post Offices (FPO) is another strategy adopted by unscrupulous traders. The booking of postal parcels in fictitious name is very easy and the content isn’t verified at the receiving counter of the post office.
It is observed that small-size items of fauna and flora are traded through the FPO — dried snakes, fishes, sea shells, dried herbal plant products and other such small articles.
The ministry is considering a suggestion to screen postal parcels and couriers and demand proof of identity. It is also planning to amend the Wild Life (Protection) Act, 1972, to address this.
21/01/11 Business Standard

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Why was Praful Patel moved out of Aviation Ministry?

New Delhi: As Vyalar Ravi takes over from Praful Patel as the new Civil Aviation Minister, the key question that's being asked in political circles is: Was this a last minute change? And if so why?
Apart from wresting the crucial Aviation portfolio from NCP, sources say, Patel's handling of Air India played a role in his change of portfolio.
Also, NDTV has learnt that the CAG will submit a report on Air India soon.
The report could raise questions about the Civil Aviation Ministry opening up Air India's lucrative Gulf routes to private carriers. And an adverse CAG report with Patel at the helm could have created more problems for the UPA.
An ill-advised merger of Air India, employee strike and his proximity to airlines owners, made Patel's tenure controversial.
The new man in-charge of the Civil Aviation Ministry, Vyalar Ravi, has strong trade union roots. He has been brought in with a clear focus on Air India, especially to take employees on board before carrying out tough decisions.
21/01/11 NDTV.com

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InterGlobe General Aviation announces delivery to India of the 2000th King Air C90

InterGlobe General Aviation Pvt. Limited, a subsidiary of InterGlobe Enterprises and the exclusive representative for Hawker Beechcraft Corporation, the world’s leading manufacturer of business and special mission aircraft, today announced the delivery of the 2000th King Air C90 to an Indian customer based in Delhi.
Entering into the market more than 45 years ago, the C90 has long been considered as the entry-level business and personal aircraft of choice. The King Air C90 Series aircraft is defined by all aircraft with LJ serial numbers, including the 90, A90, B90 and all C90 models. The milestone aircraft, a King Air C90GTx, represents the latest advancement in this most successful turbine aircraft lineup in general aviation today.
The C90GTx offers higher fuel efficiency, greater performance and efficiency and provides absolute consumer delight. The upgraded aircraft includes an in-flight accessible, heated and pressurized baggage storage area along with a private lavatory as standard. It also boasts a cabin 50 percent larger than some very light jets, which seats up to six passengers in its famed squared-oval design, allowing greater passenger comfort.
Mr. Nigel Harwood, President and CEO, InterGlobe General Aviation said, “We are delighted to deliver the 2000th aircraft here to India and the very first advanced C90GTx in the country. This series of aircraft has been an immensely popular choice in India for many years and we are confident of its future success.”
20/01/11 Business Standard

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Ravi takes aviation baton, to focus on AI turnaround

New Delhi: The minister of overseas Indian affairs, Mr Vayalar Ravi — who was given additional charge of the civil aviation ministry on Wednesday — said his main priority areas were to make sure that national carrier Air India overcomes its financial crisis, apart from making sure that all airlines operate flights on time.
“I will focus on two areas as a priority. I will focus on customer service to passengers and airlines should operate flights on time. I also want Air India to overcome its financial crisis. I will meet the employees of Air India and appeal to the workers of the national carrier to help me find a solution to the problems faced by the airline,” said Mr Ravi, outlining his plan of action.
Expressing happiness at being given the additional charge of the civil aviation ministry, Mr Ravi said, “I’m grateful to the Prime Minister and the Congress president for placing so much of confidence in me.”
Mr Ravi also expressed confidence that he would have enough time for the additional responsibility of the civil aviation ministry despite already heading the overseas Indian affairs ministry.
20/01/11 Deccan Chronicle

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Mixed response from industry

New Delhi: While India Inc is somewhat disappointed at the absence of new induction in Wednesday’s cabinet reshuffle, it is positively taken aback by the replacement of Praful Patel as civil aviation minister. Vayalar Ravi, who had been holding the portfolio of overseas Indian affairs, will replace Patel, who moves on as minister for heavy industries.
However, the aviation industry is hopeful that the current policies will be furthered and government support for infrastructure development and air turbine fuel prices will continue.
“His (Ravi’s) priority area should be safety and not the commercial interest of airlines. Also, growth without infrastructure is dangerous and will yield no results. The new minister should proceed with caution,” said captain Mohan Ranganathan, a Chennai-based aviation expert.
The reshuffle has evoked mixed response from industry.
Federation of Indian Chambers of Commerce and Industry (Ficci) director general Rajiv Kumar, who is also an economist, told Hindustan Times the reshuffle underlined the importance of performance.
“The move seems to be directed at better performance … we believe the Cabinet would deliver better,” Kumar said.
20/01/11 Hindustan Times

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New minister brings relief, hope to Air India

New Delhi: There’s a sense of relief and hope at Air India with the appointment of Vayalar Ravi as the new minister for civil aviation. ‘‘We hope the airline will get a level playing field with hopefully no interference in the running of the airline,’’ said a person close to Air India.
It is alleged that Air India never got a level playing field, when it came to allotment of terminals, lounges, or check-in counters at airports. ‘‘It never got the place it deserves, and this feeling ran deep in Air India’s psyche,’’ said the person quoted earlier.
It is alleged that Air India was often forced to withdraw its flights from certain sectors just when a private airline was about start service on a route. A case in point is when Spicejet launched its service on Chennai-Colombo route. The absence of a level playing field, say observers, had a negative effect on Air India’s employees.
Experts feel that Air India will now be able to take decisions in its interest with regard to leasing of aircraft rather than be forced by an ‘‘over-powering minister.’’ They feel it did not make sense for it to take 50 more aircraft on lease when it can’t pay its salaries.
Yet, it would have been difficult for the airline to get Rs2000 crore of equity infusion but for the former aviation minister Praful Patel’s perseverance, says an observer. The Air India management was not available for comments and was in a board meeting.
Though several steps like the merger with Indian Airlines or the setting up of strategic business units (SBUs) had merits, it is alleged that Patel did not allow them to function. It is alleged Patel failed to take decisions which were critical to Air India’s success.
20/01/11 Ranju Sarkar/Business Standard

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Praful wears a smile and says AI is safe

New Delhi: Praful Patel leaves the civil aviation ministry with national carrier Air India gasping for breath and as new heavy industries minister he will have to decide if the airline should be declared sick.
Air India's sorry state is being seen as a key reason behind Patel's shift to the low-visibility heavy industries and public enterprises portfolio. His elevation to cabinet rank did not come as a surprise, but his shift to the new ministry definitely came as one.
''AI will get my fullest support. It is not a case for being declared sick,'' Patel told TOI.
Observers say Prime Minister Manmohan Singh's decision to give additional charge of aviation to prominent Congress leader from Kerala Vayalar Ravi, is to prevent the national carrier from closing down.
Ravi is a former trade union leader and has an understanding of how the public sector enterprises function. His experience may come in handy for the crisis-ridden airline. AI's turnaround plans are yet to be implemented.
Patel said he had leaving the civil aviation in good health. ''It is now a ''sunshine sector''.
He said he would look back on his aviation minister days with great satisfaction.
20/01/11 Saurabh Sinha/Times of India

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Top priority is Air India regaining financial muscle: Ravi

New Delhi: Newly-appointed Civil AviationMinister Vyalar Ravi today said his top priority would be toensure that financially ailing Air India gets back its lostglory and all flights are on time.
"My long term goal would be to restore the lost gloryof Air India and bring back its financial strength. I wouldalso strive to motivate the employees of the airline," Ravitold PTI from Kochi soon after he was given additional chargeof the Civil Aviation Ministry.
He said he would also work closely with all airlines toensure on-time performance of all flights.
19/01/11 PTI/One India

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Aviation ministry gets new face at helm

New Delhi/Thiruvananthapuram: Rajiv Gandhi Bhavan in the national capital has got a new face at the helm with veteran Congress leader Vayalar Ravi given additional charge of the high-profile aviation portfolio in the cabinet reshuffle undertaken by Prime Minister Manmohan Singh Wednesday.
Ravi continues as minister for overseas Indian affairs with cabinet rank.
The aviation portfolio was previously held by Praful Patel, as minister of state with independent charge, right since Manmohan Singh took over the reins of the first United Progressive Alliance (UPA) government in May 2004.Patel is now a cabinet minister for heavy industries and public enterprises.
A law graduate who was first came to parliament as a member of the fifth Lok Sabha way back in 1971, Ravi takes charge of the aviation portfolio at a time when the national carrier Air India faces an unprecedented financial crisis.
19/01/11 IANS/Sify

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IndiGo is joint India No. 2 with Kingfisher

New Delhi: Just a month after pipping Air India-domestic to reach the number three slot, low cost carrier IndiGo moved up the ladder to occupy the second position along with Kingfisher in December. Also, last year ended with domestic air travellers flying like never before with a record 520.2 lakh people taking to the Indian skies - 18.7% higher than 2009's figure of 438.4 lakh. This is the first time that annual domestic carriage crossed the 5-crore mark.
The year also ended with a low cost carrier turning the tables on full service airlines. LCC IndiGo, that upstaged AI-domestic in November in terms of passengers flown to become India's number three airline, reached the second spot in December. Both Kingfisher and IndiGo had a market share of 18.6% and shared the second spot, according to DGCA figures, with the Jet-JetLite combine ahead at 25.4%.
In fact, 2010 ended on a record-breaking spree. December saw 52 lakh flying within the country - the highest number for a month. It beat the previous high of Rs 48.7 lakh set just a month earlier in November by surpassing May's 47.8 lakh figure. Not surprisingly, airlines flew with their planes full in the range of 78.8% (for AI-domestic) to 93.3% (for IndiGo).
19/01/11 Times of India

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Indian airlines break 5mn barrier in December

Indian airlines carried more than 50 lakh domestic passengers in December, setting a new landmark in the aviation industry, the latest data released by the Directorate General of Civil Aviation (DGCA) showed.
Airlines carried 52.13 lakh passengers in December, up from 44.87 lakh passengers carried in the same period of the previous year, reporting a growth of almost 16%.
The total domestic passengers carried by the Scheduled Airlines of India in November was 48.75 lakhs as against 46.17 lakhs in October 2010.
During January-December 2010, domestic airlines carried 520.21 lakh passengers compared to 438.40 lakhs in 2009.
The total domestic passengers carried by the Scheduled Airlines in the fourth quarter of 2010 (October to December) were 147.05 lakhs.
The total domestic passengers carried by the Scheduled Airlines in the third quarter of 2010 (July to September) were 119.84 lakhs.
The total domestic passengers carried by the Scheduled Airlines in the second quarter of 2010 (April to June 2010) were 134.78 lakhs.
The total domestic passengers carried by the Scheduled Airlines in the first quarter of 2010 (January to March 2010) were 118.54 lakhs.
Low-cost carrier IndiGo became the third largest domestic passenger airline in the country for the fourth quarter of 2010.
IndiGo carried 25.89 lakh passengers, followed by Air India's domestic arm at 25.42 lakh passengers. They were followed by Spice Jet (20.01 lakh), Jet Lite (10.85 lakh) and Go Air (9.79 lakh).
Kingfisher Airlines carried 27.81 lakh passengers, closely followed by Jet Airways with 27.28 lakh passengers.
The percentage share of the carriers in the fourth quarter of 2010 was: Air India (Domestic) 17.3%, Jet Airways - 18.6%, Jet Lite - 7.4%, Kingfisher Airlines - 18.9%, Spice Jet - 13.6%, Go Air - 6.7% and IndiGo - 17.6%.
The break-up for December is as follows:
Air India (Domestic) - 8.90 lakhs, Jet Airways - 9.24 lakhs, Jet Lite - 3.99 lakhs, Kingfisher Airlines - 9.72 lakhs, Spice Jet - 7.21 lakhs, Go Air - 3.36 lakhs, IndiGo -9.71 lakhs.
19/01/11 India Infoline

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Domestic airlines carry record 50 lakh passengers in Dec

New Delhi: For the first time in the history of Indian aviation, domestic airlines carried more than 50 lakh passengers in a month.
The latest data released by the Directorate General of Civil Aviation (DGCA) show that airlines carried 52.13 lakh in December, up from 44.87 lakh passengers in the same period of the previous year, reporting a growth of almost 16 per cent.
During January-December, domestic airlines carried 520.21 lakhs as compared to 438.40 lakhs in 2009.
During the period under review, the industry paid close to Rs 1.26 crore as compensation to passengers of which almost Rs 1.10 crore was on account of providing facilities and compensation to those affected by delays and cancellation of flights.
In December alone more than 1.5 lakh passengers were affected by flight delays while 31,000 passengers had to put up with flight cancellations. In December, inclement weather conditions including dense fog affected operations of airlines.
The compensation amount paid could be more as the information provided by the State-owned Air India was incomplete, the official statement added.
Analysts predict that the industry is expected to see robust growth in the next three to five years.
19/01/11 Business Line

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December delays 1.54 lakh flyers, double the November figures

Mumbai: Stabilised airfare on domestic routes might have brought some relief to flyers but it did not ensure that their flights took-off on time.According to the figures released by the civil aviation ministry 1.54 lakh passengers faced delays.
This figure is almost double than that for November when 70,698 passengers were delayed.
December has not been kind to flyers as fog in the north played havoc with airlines’ schedules.
This affected 1,54,016 passengers who faced delays of more than two hours compared to 70,000 plus in November 2010, reveal data released by the aviation ministry. “These figures are still less as national carrier Air India (AI) failed to provide data for both the months,” says an industry source.
Passengers of low-cost carriers Spicejet (73,950), Goair (43,740) and full service carrier Jet Airways (19,366) faced maximum delays.As such the airlines had to dole out compensation and facilities worth Rs 44.98 lakh.
Moreover, 30,950 passengers faced cancellations and were paid Rs 65.14 lakh as compensation and facilities.
19/01/11 Naveeta Singh/Daily News & Analysis

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JetLite cancelled maximum flights in 2010

Mumbai: JetLite, the wholly-owned subsidiary of Jet Airways, cancelled the highest number of flights last year though SpiceJet had maximum cancellations in December, official figures showed on Tuesday.
National carrier Air India recorded the least number of complaints at one per 10,000 passengers in December, with the highest number being lodged against GoAir.
According to official figures for 2010, Jetlite's cancellation rate stood at 5.8 per cent in 2010 as against the over all industry average of 2.3 per cent of all flights.
The now-defunct Paramount cancelled 5.4 per cent, while Jet Airways flight cancellation rate was recorded at 3.4 per cent.
During this period, budget carrier IndiGo had the least cancellation rate at 0.08. In December, SpiceJet recorded the maximum number of cancellations at 4.9 per cent and the lowest being that of IndiGo at 0.6.
18/01/11 PTI/Times of India

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Ombudsman to aid harassed flyers soon

New Delhi: Flyers may soon get a one-stop redressal mechanism for all their woes with the government planning to have several aviation ombudsmen across the country. Delhi may have the first ombudsman, to be followed by other metros and the states.
"The plan is to set up the office this year itself, first at the Centre and then on a state or at least regional level. This quasi-judicial authority will have the authority to resolve passenger complaints against airlines or airports, without them running around to be heard," aviation minister Praful Patel said.
Patel also added that the ministry is working on a plan to simplify airline fares. "The working group constituted for this purpose has given some recommendations. We are soon going to take a call on how maximum transparency in fares can be ensured so that spot fares turning unreasonable in crunch times can be avoided," he said.
According to aviation ministry sources, the government will take a holistic view on the issue of fares. The working group on fares is learnt to have given suggestions like opening up the closed airports in Hyderabad and Bangalore for low cost carriers at a reasonable charge. Similarly, the panel is in favour of continuing to use the excess capacity in Delhi (in form of terminal 1D) if everything is to be moved to T3.
19/01/11 Saurabh Sinha/Times of India

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Rise in airfares likely after jet fuel prices go up by 2%

New Delhi: Air fares are likely to go up further. Two of India’s largest private airlines, Jet Airways and Kingfisher, on Monday indicated that a hike in ticket prices was imminent because of costlier aviation turbine fuel (ATF).
Jet’s Naresh Goyal and officials of Kingfisher said with a 2% increase in ATF prices over the weekend, some of the burden will have to be borne by the consumer. Since October 2010, oil companies have increased ATF prices seven times.
ATF accounts for about 40% of an airline’s cost and frequent increases in fuel prices usually lead to an increase in ticket costs too. Civil aviation minister Praful Patel on Monday expressed his inability to intervene in the matter.
“Air fares are governed by airlines. The government intervenes only when the hike is unjustified, as the DGCA did in December 2010.
The Competition Commission had also intervened then after the spot fares rose suddenly (during lean season of November),” Patel said.
17/01/11 Sindhu Bhattacharya/Daily News & Analysis

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Airlines to benefit from new airport tariff model

After mulling over the issue for nearly a year, the Airports Economic Regulatory Authority of India (Aera) has adopted the single-till model, also followed at airports such as the UK's Heathrow and Gatwick.
The airport tariff regulator has decided that all major airports except New Delhi and Mumbai will charge clients under a model that potentially benefits airlines and passengers. Under the so-called singletill model, airport charges are fixed by taking into account all principal airport activities, including aeronautical or flyingrelated activities and non-aeronautical activities such as commercial use of airport space. The dual-till model, on the other hand, considers only aeronautical activities. Airlines prefer the single-till model as airport charges, being drawn from a larger number of sources, are likely to be lower for them. This also translates into lesser cost for passengers. After mulling over the issue for nearly a year, the Airports Economic Regulatory Authority of India (Aera) has adopted the single-till model, also followed at airports such as the UK's Heathrow and Gatwick. "The authority is of the opinion that single-till is most appropriate for the economic regulation of major airports in India," Aera secretary Sandeep Prakash said in a 12 January order.
On 11 March 2010, Mint reported that Aera had tentatively opted for the single-till model, while awaiting the inputs of stakeholders. The regulator itself hired PricewaterhouseCoopers Pvt. Ltd to ascertain which model was better. The consulting firm reported in favour of singletill. BridgeLink Capital Advisors, commissioned by the aviation ministry, agreed with the assessment. However, KPMG India Pvt. Ltd, hired by private airport operators, said dual-till was the better option.
17/01/11 Mint/India Infoline

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Air France-KLM Launches Component MRO In India

Mumbai: India will gain its first component repair shop in a joint venture between Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) and Mumbai-based Max Aerospace and Aviation Ltd.’s Max MRO Services.
Construction is to start early this year and finish in the first quarter of 2013, says AFI KLM E&M President Franck Terner. Terms were not disclosed, but the company, as yet unnamed, is expected to start operations with a 10,000-sq.-meter (108,000-sq.-ft.) facility.
Plants are under construction in Bengaluru and Nagpur, which offer tax-free zones established to encourage industry. Nagpur is home to the maintenance, repair and overhaul (MRO) center and taxiway Boeing is establishing for Air India.
“Given the high tax structure [in India], till the facility is set up, the company will import only the most needed components to give us economies of scale,” says Bharat Malkani, chairman and managing director of Max MRO Services. Max Aerospace’s defense arm recently assembled a Korea Aerospace Industries KT-1 trainer in India for trials.
Terner says estimates of $100 million in annual revenues for component repairs are “grossly underestimated. We expect the business to grow at 14% per annum for the next 10 years.”
17/01/11 Neelam Mathews/Aviation Week

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India to soon have its first aviation museum

New Delhi: India will soon have a national aviation museum to commemorate the 100th year of the first domestic flight in the country in 1911, Civil Aviation Minister Praful Patel said Monday.
'One important decision that the government of India has taken is to set up a national museum for aviation. This would be one of the largest museums of aviation anywhere in the world,' Patel said after a meeting of the centenary celebration committee here.
According to him, the proposed museum would be in New Delhi only and work on it would start later this year.
'The location most probably will be at the Safdarjung Airport and the museum would be called Rajiv Gandhi National Museum for Aviation,' Patel said.
He evaded questions on the cost. 'Cost is not the issue, we want to do it in the best possible manner,' Patel said, also adding a a national university of civil aviation would be established, which would be known as Aviation Training and Management University.
While Patel did not disclose any further detail about the proposed university, he said that his ministry would ask universities across the country to add a subject related to civil aviation in their curriculum.
17/01/11 IANS/Sify

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IAF working on ways to beat fatigue in pilots

New Delhi: Indian Air Force is working on solutions to beat the fatigue in pilots during combat situations due to disruption in sleep cycles so that their performance is not affected by lack of rest.
The planned trials involve both pharmacological means and non-pharma techniques, a top IAF official said.
Fatigue has been a problem among pilots involved in long duration flights which sometimes makes them commit errors that can be hazardous, more so during combat operations.
"Knowing the danger this factor poses to the success of any mission, it is important that measures be taken that will minimise the risk of any undesirable outcome. That is why the Institute of Aerospace Medicine is trying out methods to combat fatigue amongst its pilots when conducting operations on round-the-clock basis," Air Marshal Dipankar Ganguly, director general medical services, air said.
"What applies during peace time is not possible when there is a war," he said. During routine operations, a fighter pilot is well rested before he takes off. "This luxury is not there during war time. They are required to fly without adequate rest for five to ten days, depending on the nature of operation."
16/01/11 PTI/Daily News & Analysis

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Air fares set to climb on costlier jet fuel

New Delhi: With fuel costs accounting for 40% of airlines' operating costs, air fares may go up as state-run oil firms on Saturday raised jet fuel prices for the seventh time since October when international crude oil prices started climbing.
Aviation Turbine Fuel (ATF) rates in Delhi have been hiked by Rs 948.5 per kilolitre, or about 2%, to Rs 48,764 per Kl (kilolitre, or per thousand litres). The latest hike comes on the back of a Rs 935 per kl hike on January 1 and a 3.6% increase on December 15.
With this hike, IndianOil Corporation, Bharat Petroleum and Hindustan Petroleum have raised prices of jet fuel on seven occasions since October.
From Sunday, jet fuel will cost Rs 49,046 per kl in Mumbai, home to the nation's busiest airport, as against Rs 48,058.56 per kl currently.
In Kolkata, the ATF price has been hiked by Rs 1,027.26 to Rs 56,186 per kl, while in Chennai, it will cost Rs 52,323 per kl as against Rs 51,275.32 per kl currently.
16/01/11 Times of India

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Indian fliers back to travelling business class

Mumbai: While a British national is cautious before selecting the business-class option for air travel in the aftermath of recession, Indians are back to travelling with pomp and leisure, thanks to the booming economy.
According to travel agents and airlines, the business-class is going full and it is difficult to find a ticket, pushing the travellers to go for first class.
According to Rajesh Rateria, chairman, Travel Agents Association of India (TAAI), “Business and first-class in both domestic and international flights are going full this season. We are finding it difficult to get confirmation for tickets in these classes.” Even the national carrier Air India (AI) says that it has seen a huge surge of passengers in these classes. “Flights have been going full with occupancy of 75% to 80% in the first class,” says the spokesperson for AI.
16/01/11 Naveeta Singh/Daily News & Analysis

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Breath test for all pilots

Chennai: Reporting for duty after consuming alcohol is going to be extremely risky for pilots hereafter, as airlines have started doing pre-flight breath tests on pilots of all departing flights as part of Directorate-General of Civil Aviation (DGCA) instructions to make such tests compulsory.
Earlier, such tests were conducted randomly. Now, with the procedure being made mandatory, airlines have to make an additional investment on the automatic Alco Sensor machines , as per DGCA specification.
Sources said Air India and Jet Airways have started testing all their pilots from the first week of January. As the tubes used to test pilots and cabin crew are disposable, airlines have started bulk-ordering the tubes.
Some airlines have devised ways to cut costs. Sources said Jet Airways has told their cabin crew to recycle the tubes. "Each cabin crew is given a tube for the test which they will reuse. So, we do not have to buy more components for the breath test," said an airline official.
Most airlines have already invested in the machines each of which costs approximately Rs 1.5 lakh. Airlines have installed one Alco Sensor machine at all major airports.
15/01/11 Times of India

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India's airlines spend big but airports lacking

New Delhi: An upstart Indian carrier's $15 billion order with Airbus is a bold bet on travel demand in the fast-growing country. But ageing airports and over-ambition could yet clip the industry's wings.
IndiGo, which was launched in 2005, on Wednesday stormed onto the international stage by announcing a deal for 180 new aircraft, the largest number of Airbus planes ever bought in a single order.
"We are putting our money where our mouth is," IndiGo president Aditya Ghosh boasted after sealing the deal at Airbus headquarters in Toulouse, southwest France.
"If the country has to grow by 9-10 percent, the airline business has to be an equal partner," he told the Mint daily newspaper. "There will be one or two years of up and down, but overall there will be only one direction."
Yet as airlines modernise and expand, analysts warn the nation's airports lag behind, threatening to drag the soaring aviation business back to earth.
"It's not just about inducting new aircraft to meet the growing air traffic demand," Mahantesh Sabarad from Mumbai-based Fortune Equity Brokers told AFP. "It's about runway capacity, and airport capacity.
"If adequate attention is not given to build larger airports, IndiGo's plans may well be grounded."
New Delhi opened a 2.7-billion-dollar terminal in July last year, but Mumbai has been unable to relieve chronic congestion at its only airport, which is hemmed in by slums on three sides.
Environmental concerns, difficulties in relocating local people, corruption, the slow legal system and weak land acquisition legislation have meant proposals to build a second airport have been fought over for 10 years.
In November, the backers finally got the right to build a new airport among mangrove trees on a plot southeast of the city of 18 million people.
The International Air Transport Association (IATA), an industry lobby group, points to Mumbai as an example of the under-investment in infrastructure which has restricted traffic.
"Investments in the development of airport infrastructure have only been very recent," spokesman Albert Tjoeng told AFP.
14/01/11 Adam Plowright/Dow Jones/AFP

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Karnataka wants Rs. 1,500 cr in sales tax from HAL

Representatives of the defence ministry and the Karnataka government will soon meet to share details of supplies made by Bangalore-based Hindustan Aeronautics Ltd (HAL) to the former, on which the state intends to levy sales tax. The Supreme Court on Tuesday asked India's defence secretary and the Karnataka chief secretary to meet over the Rs. 1,500 crore tax dispute. The state government has levied the tax demand on HAL for the 2005-09 period. This demand covers supplies to the defence ministry and clients across the globe. HAL's representative Economic Law Practice said the state-owned company has paid all its taxes. It also said supplying to the government cannot be classified as a sale and, thus, cannot be taxed. A 1984 Supreme Court judgment classified HAL as an "agent" of the defence ministry.
But Anita Shenoy, the state government's counsel, disagreed. "After 1995, there is nothing called a defence-held store," she said. HAL was a division of the defence ministry until 1995, headed by an officer of the Indian Administrative Service. It is now a company run by professional managers. Shenoy also said HAL hadn't disclosed its transactions on security grounds, making it difficult for the assessing officer to levy a tax demand.
12/01/11 India Infoline

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Airfares slashed as lean season sets in

New Delhi: A newly formed committee to look into steep hikes in airfares may have little to do for the next three months with ticket prices crashing with the onset of the lean travelling season from 10 January.
Airlines are now charging just about one-third of what they were during the peak months of November and December, even on key routes.
The price of a Delhi-Mumbai ticket booked a fortnight in advance is down to Rs.3,276 from around Rs.8,000 two months ago, while that of a ticket bought a day before the flight is down to Rs.5,426 from Rs.17,000.
“The airfares will follow a dip,” said Centre for Asia Pacific Aviation’s (Capa) South Asia chief executive officer Kapil Kaul. “After 7-10 January, discussion on fares will no longer be relevant.”
Kaul is a member of the committee formed by the aviation ministry in December to study airfares and other issues in the wake of an exorbitant rise in ticket prices during the busy festival season. An executive at a domestic airline said the fall in fares was inevitable.
“Sectors which were seeing high demand are now seeing very low sales even for next-day departure. With demand coming down, airlines are forced to drag down fares,” added this person who did not want to be identified.
Fares are likely to remain low until mid-April.
Full-service airlines such as Jet Airways (India) Ltd, Kingfisher Airlines Ltd and Air India are selling Delhi-Mumbai tickets at Rs.3,882-4,378, while low-cost carriers such as SpiceJet, IndiGo and GoAir have brought fares down to Rs.3,500-3,800 on the same route, according to data available on travel websites.
12/01/11 Tarun Shukla/Live Mint

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Analysts bullish on airline flightpath as demand soars

Mumbai: With the increase in aviation turbine fuel (ATF) prices, full-cost airlines such as Kingfisher, Jet and Air India have already hiked ticket prices to pass on the hike. The hike is reportedly in the range of Rs100 - 200 per ticket, depending on the distance.
On the other hand, low-cost carriers such as Spicejet have not hiked ticket prices, thus absorbing the hike in fuel prices at the moment. Analysts point out that in both situations airlines are likely to perform well in the fourth quarter.
Indian Oil Corporation has increased its domestic ATF prices (Delhi) from Rs46,880.3 per kilolitre (kl) in December 2010 to Rs47,815.5 per kl on January 1, 2011.
Similarly, HPCL increased domestic ATF prices (Delhi-Palam) from Rs38,596.22 per kl in December 2010 to Rs39,378.65 per kl in January 2010. Overall, the hike in ATF prices has been in the range of 2%.
Most analysts are confident airlines, both full-cost and low-cost, would put up good numbers for the fourth quarter, inspite of an increase in fuel prices.
Around two years ago, when crude oil prices were on an upward trend and ATF prices moved in tandem, airlines had to take a massive hit. So, what’s changed this time?
Analysts point out this time airlines are enjoying a significant increase in demand, making it easy to pass on the hike to passengers.
12/01/11 Amritha Pillay/Daily News & Analysis

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Rani of the sky

Unlike Kangna Ranaut and Katrina Kaif who are very unpopular while flying because of their snooty attitude, Rani Mukerji is adored by the airline staff.
Rani who recently flew the length and breadth of India promoting her film No One Killed Jessica was a riot on every flight she took. Says a source, "When there was no business class available, Rani agreed to fly economy without a fuss. Also she didn't insist on sitting in the first row; instead she chose the last row in the cabin.
She even encouraged Vidya to let her hair down through the duration of the flight. Since both these actresses were seated just a row before the toilets, suddenly everyone on flight (especially the men) wanted to constantly use the toilet.
12/01/11 Times of India

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MoCA Secretary announces plans to set up satellite accounting system for aviation

Mumbai: With the aviation sector becoming the growth indicator of the Indian economy, Dr SNA Zaidi, Secretary, Ministry of Civil Aviation (MoCA) last week announced plans to set up a satellite accounting system to quantify the sector's contribution to the country's GDP.
According to a report in Economic Times, speaking at the II National Aviation Economics and Statistics Workshop organised by infrastructure company GMR Group in New Delhi recently, Zaidi said, “We have requested the Central Statistical Organisation to help us out with the satellite accounting system so that we can assess the sector’s contribution to the country’s GDP.”
According to industry experts, the per capita amount spent by a country’s population on travelling is a growth indicator of the country. With nine-ten per cent growth forecast for India and a subsequent increase in the disposable income, the aviation sector has become an important growth indicator. Industry studies have said that developed countries record more air trips per capita. For e.g. United States has around 2.5 trips per year per capita with a population of about 309 million, whereas India has under 0.5 trips per capita per year, even though it has a much larger population.
10/01/11 TravelBizMonitor

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Airlines get more time to phase out expat pilots

New Delhi: The civil aviation ministry has granted much-needed relief to domestic airlines, allowing them to employ expat commanders and keep them on their rolls until 2013, as the industry prepares to induct 240 more planes in three years to meet increasing travel demand.
The blanket three-year extension is also a shift from the government’s policy of granting yearly extensions, and is likely to help India’s airlines compete better with carriers in China and South-East Asia in hiring experienced expat pilots.
Foreigners now make up 15% of the total number of pilots in India.
“The deadline (to phase out expat pilots) was to lapse this year. We have now allowed it till 2013,” said a civil aviation ministry official who did not want to be named.
In 2009, the government had asked the airlines to phase out expat pilots on their rolls by July 2011 so that Indian co-pilots could be promoted.
Domestic airlines, under the umbrella of lobbying group Federation of Indian Airlines (FIA), requested the regulator, Directorate General of Civil Aviation (DGCA), and aviation minister Praful Patel for a five-year window to hire foreign pilots and keep the current ones on their rolls, Mint reported on 28 September.
09/01/11 Tarun Shukla/Live Mint

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Shortage of Boeing planes delaying direct flights to London, New York

Ahmedabad: Union Civil Aviation Minister Praful Patel today said the demand for more direct flights to London and New York from Ahmedabad could take more time due to shortage of Boeing aircraft.
“There are plans to get 27 Boeing planes at the Sardar Vallabhbhai Patel International Airport, but there is a shortage of aircraft. Even the request for direct flight to London and New York are in the pipeline,” he said at the inauguration ceremony of a new international terminal at the SVPI airport here.
Later, he unveiled a 18-foot tall statue of Sardar Vallabhbhai Patel at the airport. The statue was built at a cost of Rs 50 lakh by the Airport Authority of India (AAI). It was sculpted by noted sculptor Ram Sutar.
Patel further said he had not seen any initiatives from the Gujarat government for developing intra-state air connectivity, in support to the Centre’s efforts for the same. “Last time, when I was here to inaugurate the new terminal, I had said that state government also has to come forward for intra-state connectivity and support the Central government’s efforts,” Patel said.
10/01/11 Indian Express

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Competition in South India air

New Delhi: With the entry of new players and expansion of the existing airlines, the southern aviation market is going through a see-saw competition, thereby, providing more options for passengers.
To begin with, non-scheduled carrier Air Freedom has obtained the Civil Aviation Ministry’s nod to acquire 14 new aircrafts. The carrier plans to operate regional flights in southern markets in the next seven months. “We target to start our operations from August this year. We already have the ministry’s approval to buy 20 aircrafts (ATRs and Bombardier). We have identified 26 airports in south India and are in process of setting up facilities at these airports. There is a huge potential in the southern market for regional connectivity. South is the only region where you have three metros – Bangalore, Hyderabad and Chennai – as connecting points to the entire country and abroad,” said Rajkumar Krishnan, vice-president (corporate affairs), Air Freedom. Air Freedom is a part of Mumbai-based Freedom Aviation promoted by Delta Corp.
Similarly, low-cost carrier SpiceJet recently announced that it would buy 30 Bombardier aircrafts to launch services in smaller cities for regional connectivity. A company official, on condition of anonymity, said most of these services would be in southern region.
According to industry experts, passenger traffic in southern India is likely to grow over 20-22 per cent in the next three years, which would be marginally over 18-20 per cent of the expected industry growth. “South offers big business opportunity as the region has the maximum number of airports. The growth will come from tier two and three cities. With new players coming in, passengers will have an option of better pricing,” said an industry player.
06/01/11 Parul Chhaparia/mydigitalfc.com

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Air Works India Expands Line Maintenance

Air Works India Engineering, India’s only private maintenance, repair and overhaul (MRO) third-party provider, is expanding its line maintenance capabilities with the inauguration of facilities at Trichy International Airport, its second client after Bengaluru International Airport.
Air Works, which plans to start line maintenance at many airports, including its next facility at a non-metro airport in South India, will be a worthy competitor to national carrier Air India in Trichy and Bengaluru and will be in a position to “offer better rates and the ability to turn around an aircraft faster,” says Dhiraj Chhabra, associate VP-marketing.
Line maintenance is minor maintenance carried out on aircraft in service en route and stopped before its next flight to ensure it is fit for the flight.
While the trend is for airlines to do their own line maintenance, large Indian carriers, such as Jet Airways and Kingfisher Airlines, generally do not outsource.
06/01/11 Neelam Mathews/Aviation Week

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Unruly flyers can get 1-year jail term, Rs 5L fine: DGCA

Bangalore: Airline passengers who abuse the crew or rush to open the luggage cabins even before the aircraft comes to a complete halt had better watch out. The Directorate General of Civil Aviation (DGCA) has notified two new rules to regulate bad behaviour on-board, both on domestic flights and on international flights destined for India. The two rules — Nos. 22 and 23 — have been incorporated in the Indian Aircraft Rules, 1937. Any offence under these rules is punishable with imprisonment up to one year or a fine of up to Rs 5 lakh, or both. These rules also empower the airline and cabin crew to initiate action for bad on-board behaviour and to lodge a complaint with agencies like the Central Industrial Security Force (CISF).
Bharat Bhushan, the DG of civil aviation, said the provocation to introduce the new clauses was based on experience.
06/01/11 Shilpa Phadnis/Times of India

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Regulator issues stiff ones for drunk pilots, crew

Mumbai: Aviation regulator DGCA is tightening the screws on ‘drunken flying’. In the stiffest penalties for pilots and cabin crew who consume alcohol before reporting for duty, the DGCA has ruled that if a pilot or a member of the cabin crew is found drunk before a flight — and is a second-time offender — his/her licence will be cancelled for five years.The first offence would mean suspension of the licence for three months. The DGCA has just notified these guidelines.
These penal procedures will also apply if a pilot or crew member evades the mandatory breath analyser test before a flight. Further, in case a flight instructor or examiner is found drunk, his ratings would be cancelled for three years besides a five-year licence termination in case of second offence.
The regulator has shown leniency only for post-flight medical checks for domestic flights, where it has said that these checks will not be done as a matter of routine and may only be conducted if DGCA or representatives of other safety bodies ask for them.
As per the Civil Aviation Requirements (CAR) Section 5 on Air Safety issued on Tuesday, the regulator wants all flights originating from India to conduct pre-flight breath anaysis checks on the crew and pilots, every day
06/01/11 Sindhu Bhattacharya/Daily News & Analysis

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Goa tourism hit by hike in airfares

The much celebrated Goa holidays during Christmas and Goa parties on New Year’s Eve has faded out due to the high cost of air tickets to the smallest state of India.
According to tourism officials, except for the days of Christmas and New Year, travel business in Goa was very low during the full holiday season. "The high hike in air and bus fares has really hit the tourism industry hard. The rest of the season has been extremely poor," Gaurish Dhond, president of the Travel and Tourism Association of Goa (TTAG), was quoted as saying in media.
Dhond said competitive prices offerd by some airlines to locations outside the country was the main reason for the lean tourism. While airfares to Goa were costing about $660 from India’s capital Delhi, Malaysia and Sri Lanka were luring Indian travelers by offering three-night packages for $330 that included flight tickets as well. “Why will domestic tourists want to come to Goa if competing destinations abroad offer such cheap rates," Dhond said.
05/01/11 IBTimes

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Indian aviation: Flying in calm skies

The drivers that propelled Aviation sector in 2010 seem set to continue in 2011. Demand is expected to grow strongly (at least in the mid-teens), supply should be lower than demand (with significant additions expected only from the low-cost players) and balance-sheet repair, which is underway, should ease some pressure off the FSCs. The planned push into the smaller towns and cities should also create new and promising demand pockets. Yet, the sector still has a considerable distance to traverse before it moves into the safe zone.
The overall debt level remains precarious (in excess of Rs 60,000 crore). This, even as accumulated losses over previous years has shrunk the equity base of most players and eroded the net worth of two of the three full-service carriers.
While the much-needed restructuring and planned equity infusions are a good first step, it will take quite some time for Air India and Kingfisher Airlines to shrug off the debt albatross and show profitability at the net level. Also, while Jet has been turning in profits for some quarters now, its debt burden remains huge, and a thinning of flab is a must if the full potential of the improved demand-supply dynamics needs to be realised by the airline at the net level.
The low-cost carriers with limited leverage, better operating metrics and aggressive expansion plans, seem to be in a better position to capitalise on the opportunities being thrown up by a growing economy.
Not surprisingly, unlisted players in this category, such as Indigo and GoAir, are reported to be planning to go public in 2011.
Despite an improvement in the fundamentals and sentiment over the past year, the sector still faces headwinds. The immediate among these are escalating costs due to crude oil prices riding up in the past few months.
06/01/11 Anand Kalyanaraman/Business Line

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Rising crude prices may affect aviation sector

Mumbai: In mid-2008, several airlines preferred to ground their planes rather than flying them at high costs when international crude oil prices hit an all-time high of $147 a barrel, threatening their very existence. Today, after more than 24 months, a similar situation is set to grip the sector, if things are not controlled.
The international price of crude oil is again steadily rising, and has already crossed $91 (Rs 4,076.80) a barrel, surging by more than 30 per cent since September 2010.
According to oil analysts, crude prices could hit $100 a barrel by the end of 2011, backed by heavy buying by US funds and rising demand from India and China. And if this psychological mark is breached, it could jeopardise growth prospects in Indian aviation sector, contend analysts.
“At current prices ($91 a barrel), there is not much concern. But the trend is alarming,” said Ankur Bhatia, managing director, Bird Group, an aviation and hospitality consulting firm. “I believe airlines will handle the situation by increasing their fuel surcharge. In the recent past, we have seen fares skyrocketing, backed by heavy demand. Flyers would not mind and shell out extra. But too much increase in fares would affect growth.”
Since the beginning of 2010, the Indian aviation industry has been on a revival path, with passenger numbers growing by 18 per cent against the previous year. And for 2011, the growth is forecast to be around 20 per cent, backed by a possible 9 per cent growth in the Indian economy. Under such circumstances, the hike in oil prices could act as a deterrent to the growth momentum when airlines would pass on the extra financial burden to passengers to minimise their losses.
05/01/11 Lalatendu Mishra/Tehelka.com

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Wikileaks lifts curtain on Boeing/Airbus horsetrading

The New York Times reports another set of WikiLeaks has shown the lengths the US diplomatic corps, among others, go to market defence and aerospace products. The newspaper says the cables, posted on its website shows “to a greater degree than previously known” that “diplomats are a big part of the sales force.”
The paper Sunday published diplomatic cables showing the king of Saudi Arabia wanted the United States to outfit his personal jet with the same high-tech devices as the American president's “Air Force One”. The president of Turkey wanted a slot for an astronaut on a NASA space flight and the Bangladeshi prime minister pressed the State Department to re-establish landing rights at Kennedy International Airport in New York.
“Each of these government leaders had one thing in common: they were trying to decide whether to buy billions of dollars’ worth of commercial jets from Boeing or its European competitor, Airbus,” the newspaper reported. “And United States diplomats were acting like marketing agents, offering deals to heads of state and airline executives whose decisions could be influenced by price, performance and, as with all finicky customers with plenty to spend, perks.
The United States economy, said Robert D. Hormats, under secretary for economic affairs at the State Department, increasingly relies upon exports to the fast-growing developing world — nations like China and India, as well as those in Latin America and the Middle East. “So pushing sales of big-ticket items like commercial jets, earth-moving equipment or power plants (or stepping in to object if an American company is not being given a fair chance to bid) is central to the Obama administration’s strategy to help the nation recover from the recession.”
The cables show that the United States was willing to pull out all the political stops if Boeing is in danger of losing a big deal to Airbus. In late 2007, the board of Gulf Air, the national airline of the oil-rich kingdom of Bahrain, picked Airbus for a huge sale. Boeing told the American government, which responded that there was still a way to turn the deal around, even though Airbus had offered the planes for about US$400 million less than Boeing. The crown prince and king of Bahrain, preparing for the first visit by a sitting United States president, agreed to reverse the decision after some lobbying, ordering Gulf Air to reopen negotiations with Boeing, which ended up winning the deal, which was signed while then-President Bush visited shortly afterwards.
04/01/11 defenceWeb

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Sachin may fly in Sukhoi from Lohegaon air base

Pune: As a run-getter, Sachin Tendulkar has soared above the rest in the world of cricket. Now, the air force base here plans to introduce him to dizzying heights up and above the real world with a special sortie in a Sukhoi aircraft.
"He is an exceptional cricketer and we would like to fly him in an exceptional airplane like the Sukhoi 30," said Air Marshal Anjan Kumar Gogai, air officer commanding-in-chief, HQ South Western Air Command, while interacting with the media on Tuesday.
Gogai said a proposal in this regard has been moved to the ministry of defence. "The sortie can be carried out subject to the ministry's approval and Sachin's availability," he said.
Such sorties are certainly only for the privileged, with president Pratibha Patil and her predecessor A P J Abdul Kalam having been flown in Sukhois in the past. Incidentally, Patil was the oldest woman at 74 years to be airborne in a combat jet for a 30-minute sortie at a speed close to the supersonic level when she flew in a Sukhoi last year.
05/01/11 Prasad Kulkarni/Times of India

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NAL seeks regulator’s approval to restart Saras programme

India’s first civilian aircraft programme, Saras, grounded nearly two years ago after a fatal crash, is close to being restarted but likely at double the original budget.
National Aerospace Laboratories (NAL), the designer and developer of the aircraft, has applied to the Director General of Civil Aviation (DGCA) for a product organization approval (POA) to start work on Saras, said its director A. R. Upadhya.
An approval is expected in about two weeks, he said. “We have submitted documents saying that NAL has (fresh) technical expertise and trained manpower to design and develop the aircraft,” he said.
NAL is the aerospace technology arm of the Council of Scientific and Industrial Research, India’s largest public-funded research agency.
It built two prototypes of Saras, a 14-seater multi-purpose aircraft to connect feeder routes. The second prototype crashed in March 2009 during a test flight near Bangalore, killing the three people on board. In its renewal plan for Saras, NAL has proposed converting the first prototype, which had a low-powered engine and weight problems, to a redesigned version of the second prototype with Russian help.
The earlier second prototype was powered by an engine that provided extra thrust but the weight problem remained unresolved. The second prototype will be used purely for test and training for pilots.
04/11/10 Bhargavi Kerur/Live Mint

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Committee Constituted for Indian Civil Aviation Centenary Celebrations

Indian Civil Aviation is completing 100 years on 18th February, 2011. The year 2011-12 will be declared as the Civil Aviation Centenary Year, starting from 18th February, 2011 and ending on the same date in 2012. On this date in 1911, the first commercial plane flew in India between Allahabad and Naini. Since then, aviation in India has grown from strength to strength. Today India is the 9th largest civil aviation market in the world and this forward march is likely to culminate in India becoming one of the three largest markets in the world by 2020.
To commemorate the occasion, the Ministry of Civil Aviation has constituted a high level committee to be chaired by the Minister for Civil Aviation Shri Praful Patel to deliberate on the scale and the modalities of the celebrations. The committee includes former Civil Aviation Ministers Mr. Ghulam Nabi Azad, Mr. Sharad Yadav, Mr. Rajiv Pratap Rudy, Mr. Shahnawaz Hussain and Mr. Anant Kumar; eminent Indians who have contributed to Indian Civil Aviation like Mr. Rakesh Sharma, first Indian Cosmonaut, Mr. Vijaypath Singhania, Air Marshal Arjan Singh, Ms. Saudamini Deshmukh, the first lady pilot in the commander’s seat in India, Shri Satish Sharma, MP and Chairman of Aeroclub of India, Captain G. Gopinath, Shri Dipinder Hooda, MP, Shri Naveen Jindal, MP, Secretaries of the Ministries of Civil Aviation, Defence and Tourism, Chairpersons of all Indian airlines, Chairpersons of all Indian airports, CMD Pawan Hans, Chairman ISRO, representatives of Tour and Travel Operators, eminent pilots, representatives of IGRUA, NFTI, NAL, HAL, BCAS, DGCA and the Ministry of Civil Aviation. The Committee will :
· Deliberate upon the period of celebrations,
· Formulate an Action Plan for the entire year,
· Decide events which may be undertaken during the centenary years,
· Decide locations where different events may take place,
· Co-opt members to broaden the membership base,
· Locate appropriate budgetary sources to finance the celebrations,
· Assign responsibilities to individuals and institutions for the organisation of events,
· Constitute Organising Committee/s for conduct of events.
During the course of the year, the following activities are likely to be undertaken:
· Advertisement Campaigns in print and electronic media
· Air Shows
· Establishment of an Air and Space Theme Park or Museum
· Release of Stamp by HE the President of India
· Commemorative Coins
· Coffee Table Book
· Establishment of an Aviation University
· Road Shows/Exhibitions in State Capitals with smaller exhibitions at all airports
· Felicitation of eminent people who have contributed significantly to the growth of Civil Aviation in India
· Institution of Annual Civil Aviation Awards
· Air Craft Modelling competitions amongst students
· Competitions/Quiz etc on TV/FM
It is planned that the private sector, being major stakeholders in the Indian Civil Aviation, will be adopted in the celebrations as major partners.
04/01/12 PRESS RELEASE/Press Information Bureau

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Strict rule keeps pilots sober

Mumbai: The aviation regulator’s move to severely punish pilots caught drunk on duty is showing good results. All the 400-odd pilots and flight attendants checked at four metro airports during the wee hours of Saturday cleared the post-New Year’s Eve alcohol test. According to the new rule that came into effect last October, a pilot caught drunk on duty for the first time is grounded for three months. A second-time offender would be benched for two years and the pilot loses the license if he tests positive a third time. Earlier pilots were only suspended for a week.
The results of breathalyser tests conducted at Mumbai, Delhi, Kolkata and Chennai on January 1 indicate a significant improvement.
At least 10 pilots tested positive and about five skipped the test on January 1, 2008.
Civil aviation secretary Nasim Zaidi told the Hindustan Times that the changes to the rule for punishment for reporting drunk to work was making a difference.
In addition to the stringent punishment, the DGCA has increased the frequency of pre-flight alcohol tests.
03/01/11 Soubhik Mitra/Hindustan Times

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Rising economy, Gulf operations save India's airlines

Bangalore: Notwithstanding the controversy surrounding exorbitant prices charged by the airlines in India, bleeding balance sheets for two years since 2008 recession, the year 2010 has ended on a happy note to the airline industry in India.
The recovery is so spectacular that Indian aviation industry has emerged as one of the fastest growing aviation markets globally thanks largely to India's excellent economic growth which is pegged at 8.75% for the current fiscal by the government. With economic recovery in full swing, the consumer spending on travel too has gone up rescuing the airlines industry that was staring at bleak future not long ago. According to one of the aviation experts, 2011 will be much better with passenger traffic likely to reach nearly 60 million from 45 million in 2009.
Most of these loss making airline operators have left behind the turbulent period of surging operational costs, excess capacity and unruly competition. Now they reach more domestic destinations hitherto unheard of besides targeting the lucrative Gulf sector, Saudi Arabia in particular. The Gulf was the sole monopoly of the national carrier Air India a few years ago. But that has changed. Jet Airways, the private airlines for example, now flies to Manama, Doha, Abu Dhabi, Dubai, Sharjah, Kuwait, Muscat and three destinations in Saudi Arabia: Riyadh, Jeddah and Dammam. Kingfisher Airlines, a new entrant in the overseas market, has introduced flights to Dubai from Mumbai and Delhi.
02/01/11 Gopal Sutar/Arab News

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Fog effect: Early morning flights to North India rescheduled

Mumbai For the next one month, taking early morning flights to destinations such as Chandigarh and Jammu is going to be difficult with airlines rescheduling them to later in the day because of fog in North India.
Jet Airways has rescheduled its flight to Chandigarh from Mumbai to depart at 11.30 am because of prevailing poor visibility conditions at the Chandigarh airport. Similarly, Jet has rescheduled its flights to Udaipur from its early morning 5.40 am slot to 7.05 am.
On the other hand, it has cancelled its flight from Delhi to Chandigarh altogether for the first week of January citing poor visibility conditions at the Chandigarh airport. These flights have been rescheduled regularly over the last few days and this is likely to continue in January as well. ATC officials said flights from many fog hit stations including Chandigarh and Delhi continue to be delayed by an average of an hour.
On Friday, Go Air’s flight to Chandigarh was delayed by around 3 hours because of the weather. According to flight tracking website flightstats.com, Jet Airways cancelled its 7 am flight from Mumbai to Delhi on Friday.
01/01/11 Express India

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Flying in New Year gets costlier

Mumbai: The year 2011 will be bringing in heavier airfares and the first step in that direction has already been taken with fuel surcharge up by Rs 100 to Rs 200 on domestic routes.
"In order to reflect the multiple recent increases in ATF, Kingfisher Airlines has increased the fuel surcharge by Rs 100-200 on domestic flights from today," said a Kingfisher Airlines spokes-person on Friday. The move came soon after state-owned oil firms hiked fuel prices by about 2% on Friday, taking up the cost of aviation turbine fuel in Mumbai to Rs 48,000. On December 15, fuel prices were hiked by 3.6%. On Friday, IndiGo, Go Air, SpiceJet and Air India confirmed that they hadn't increased fuel charge yet. Jet Airways did not comment. As has happened in the past, airlines are expected to follow suit and increase fuel charge on domestic routes.
The travel industry was also abuzz with news that fuel surcharge has been increased by some airlines on the international routes as well. Kingfisher Airlines said it hadn't done so, while the Jet Airways spokesperson refused to comment.
"Airlines have in the past, too increased charges surreptitiously. No one notices when say, the fare on a given international route goes up by a few hundred rupees. This time around, it looks like some airlines have increased fuel charge on international routes by $20," said a travel agent, requesting not to be quoted. He could not confirm on which of the routes had the charge gone up and exactly by how much.
01/01/11 Manju V/Times of India

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Oil companies raise ATF rates by about 2%

New Delhi: State-owned oil firms today raised jet fuel prices by almost 2 per cent, the sixth straight increase in rates since October when international crude oil prices started climbing. Prices of aviation turbine fuel, or ATF, in Delhi have been increased by Rs 935 a kilolitre, or 1.99 per cent, to Rs 47,816 per kl with effect from Friday midnight, an official of Indian Oil Corp (IOC), the nation's largest fuel retailer, said.
The latest increase comes on the back of a massive 3.6 per cent hike on December 15. With this raise, IOC and sister public sector retailers Bharat Petroleum and Hindustan Petroleum have raised prices of ATF, on six occasions since October. The ATF price in Delhi on October 1 was Rs 40,728.52 per kl. The rates were raised 17.4 per cent in six tranches since then, in tandem with a surge in global oil prices to the $90-per-barrel mark.
Jet fuel will cost Rs 48,059 per kl in Mumbai, home to the nation’s busiest airport, from tomorrow, as against Rs 47,084.40 per kl currently.
01/01/11 Press Trust Of India/Business Standard

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Air passenger traffic worldwide drops, but India scores

Mumbai: Even as air passenger traffic (APT) saw a decline of 0.8% internationally in November due to slow economic growth, industrial labour actions and bad weather, airlines in India not only braved the conditions but also came up trumps.
According to figures released by International Air Transport Association (IATA), India registered a 20% growth in APT in the month over October, when there had been an increase of 10% in APT worldwide.
Except for Africa, carriers in Europe, North America, Latin America, South Asia and Asia Pacific saw slow growth or decline in APT in November compared to October.
01/01/11 Naveeta Singh/Daily News & Analysis

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The foggy lingo of taxes on air tickets

Mumbai: Ever wondered what fees like JN, WO, YQ and XT on your air ticket mean, and why, added to the base fare, they send your airfare streaking into stratosphere. The odd alphabetical pairings have left the Directorate General of Civil Aviation scratching its head as well.
The issue of lack of transparency in air tariffs was brought up this month by Sudhakara Reddy in the first ever meeting of the Civil Aviation Economic Advisory Council.
A December 14 Jet Konnect ticket came at a base fare of Rs 2,250, but cost Reddy Rs 6,282 because of the mysterious heads of IN, JN and XT in between.
The other, more transparent, ticket bought on IndiGo Airlines for the same date coupled the base fare with the fuel charge to give an initial price of Rs 5,319. It then added passenger service fee (Rs 229), transaction charge (Rs 500), service tax (Rs 103) and user development fee (Rs 200), forcing the final tariff to balloon to Rs 6,351.
Though gobbledygook on the ticket, the lingo is demystified on Jet Airways' website. According to the site, JN stands for service tax, WO for passenger service fee and IN for user development fee.
Director general of civil aviation Bharat Bhushan said: "We are looking into the issue."
Reddy also criticised IndiGo for charging a transaction fee for tickets bought online — a practice also followed by Spice Jet and Go Air, though Go Air calls it merely "services". Aside from the transaction fee, Go Air passengers also need to pay Rs 129 as insurance fee.
All domestic airlines in India play the obfuscatory game by adding into one sum the base fare, the fuel charge and the airline congestion charge. Though a requirement of the DGCA, it makes cancelling a non-refundable ticket more troublesome.
01/12/10 Manhu V/Times of India

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Flying while the world parties

Chennai: As the world readied to usher in new year, Anita was all set to take off to Dubai, not as a passenger but as a pilot manning a Boeing 737-300 on December 31. Hundreds of pilots did the same when the world beneath them heralded 2011 with noisy parties.
The pilot knew she would be able to see the glittering lights of the city from her cockpit window, but she would not see the fireworks explode to welcome the new year as she would have climbed to cruising altitude over Chennai.
Anita was sad that she would not be with her husband and parents, but she cheered up soon. "It's better to start a new year by doing something that I like flying an aircraft," she said. Her husband too is a pilot and was also flying like her.
"I will be landing in Chennai around 8pm. So I will get to celebrate new year's eve unlike last year when I was flying," said Dennis Rajagopal, a pilot with Air India.
Celebration on board vary sometimes, the airline serves special food for passengers or cabin crew distribute sweets to passengers. "We don't clog up the radio channels but quickly exchange new year wishes with other pilots flying in the vicinity," Anita said.
01/01/11 V Ayyappan/Times of India

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