Domestic aviation traffic grows at 14 pc: IATA

New Delhi: India's domestic aviation traffic continued to grow at 14 per cent, the second highest after Brazil's 15.1, as global figures for June showed softening in demand for bothair travel andfreight markets.
"Brazil led domestic growth with a 15.1 per cent demand expansion over the previous year, propelled by strong growth in household incomes. Brazil was followed byIndia at 14 per cent," the latest traffic figures published by the International Air Transport Association (IATA) showed.
While China's five per cent growth was "impressive, it is a step change from the 14.6 per cent recorded in 2010 and the 10.4 recorded in May".
Noting that China, the second largest domestic market, still had enormous potential, theIATA analysis said the slowdown in its international markets reflected "a squeeze on consumer spending power by tighter economic policies".
30/07/11 PTI/Economic Times

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DGCA pill for sleepless ATCs

Mumbai:: Air traffic controllers (ATCs), the overworked, unsung heroes of aviation, have at last a reason to smile. The Directorate General of Civil Aviation (DGCA) has reduced the working week for ATCs from 42 to 36 hours and reworked their rest rules, to be followed at all airports in the country. But the reworked norms are unlikely to be implemented before next year because of staff shortage.

The new norms are on a par with those of the International Civil Aviation Organization (ICAO). They stipulate work in five shifts against the current practice of four and mandatory weekly offs as opposed to no specifications for offs at present. An official of the Airports Authority of India (AAI; the DGCA reworked the ATC norms along with it) said the rules intend to give breathing space to overworked ATCs who go without proper rest. He said ATC fatigue is a major cause of accidents and so the new norms translate into passenger safety. "ATCs in Australia, the UK and the US follow rules similar to the DGCAs reworked norms. That ATCs in Western countries enjoy better work conditions has always been a matter of discussion for the AAI and the DGCA."

Explaining the rule for shifts, he said: "Let's say that on day one, one batch does afternoon duty, from 1 pm to 8 pm. On day two, this batch will be on morning duty, from 8 am to 1 am. On day three, it will be on night duty, from 8 pm to 8 am the next day. Day five will be off, when another batch will be working.

30/07/11 Chinmayi Shalya/Times of India

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More Indians are taking to the skies

Mumbai : The Indian aviation sector has witnessed major capacity addition during the last six years. The fleet size increased and demand for domestic and international travel has grown close to 100% in the last six years.

In 2010-11, airlines in the country carried 60 million passengers on the domestic routes against close to 25 million in 2005-06.

According to Crisil research, domestic passenger traffic has grown at an average annual rate of 16.5% during the last six years. The agency expects it to grow at an average annual rate of 12-14% to reach about 97 million in 2015-16.

Growing affluence has translated into increased foreign holidays. This growth is evident from the fact that a number of foreign airlines, including Emirates, are nearing their maximum seat capacity allotted under bilateral agreements.

30/07/11 Amritha Pillay/Daily News & Analysis

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Aviation regulator freezes helicopter operations at Mumbai's Racecourse

Mumbai: The Directorate General of Civil Aviation (DGCA) has suspended all helicopter operations at the Mahalaxmi Racecourse here, after a safety audit revealed it lacked fire-fighting facilities and was functioning without required regulatory approvals.

On Monday, DGCA officials and the Rotary Wing Society of India regional president, Uday Geli, had inspected the helipad. It is widely used by companies such as the Reliance, Raymond and Bajaj groups. Both the Ambani brothers use this helipad daily to travel to their offices in Navi Mumbai. It sees 15-20 flights daily.

Helicopter operations are not permitted at Mumbai airport. Most operators use ferry flights from Juhu to Mahalaxmi. “They pick up passengers from Mahalaxmi and transport them to the destination,’’ an aviation source said.

28/07/11 Business Standard

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Bad weather in Pink City delays chopper take-off

Jaipur: Pakistan's foreign minister Hina Rabbani Khar, who was on her way to the Ajmer dargah, had to wait at the Jaipur airport for at least 45 minutes on Thursday afternoon due to bad weather in city.

"Her aircraft landed at 12.25 in the afternoon. There was poor visibility due to rain and there was also formation of electrically charged clouds at the international terminal. It lasted for 20 minutes. Later when it was cleared, similar conditions were found at Ajmer for the next 25 minutes. Thus, her chopper could not took off for the initial 45 minutes," said R K Singh, director, Airports Authority of India, Jaipur.

The poor weather initially made the authorities attending the eight-member Pakistani delegation to work out something like a short visit to Jaipur city.

29/07/11 Ashish Mehta/Times of India

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Technical problem delays President?s flight

President Pratibha Patil's departure for Mongolia from here was delayed for over two hours today after Air India One aircraft developed problem because of heavy rains. The special aircraft carrying the President, her spouse Dr Devisingh Shekhawat, Parliamentarians and officials including media personnel had to wait for about two and half hours at Seoul Air Base for the technical problem to be rectified. There has been torrential rainfall continuing since last evening. Officials, requesting anonymity, said the light sensors in the wings had developed fault due to the downpour following which local technical personnel were roped in to rectify it.

27/08/11 Ashwini Shrivastava Seoul/PTI/IBN Live

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Streamline tax structure for aviation MRO units: ASSOCHAM

Bangalore: Industry body ASSOCHAM on Monday called for streamlining various taxes to encourage aviation Maintenance, Repair and Overhaul (MRO) facilities in the country to make it a global hub.
The trade body said India has huge potential to become a major hub due to low cost benefits, favourable geographical location and sharp upswing in air passenger traffic.

The Indian civil aviation sector is currently celebrating 100 years of existence but its share is just one per cent in the 50 billion dollar global MRO market,according to ASSOCHAM.
Passenger traffic of scheduled airlines jumped from 73 million in 2005-06 to 142 million in 2010-11, the Associated Chambers of Commerce and Industry of India said.
25/07/11 Economic Times

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Air taxi service to steel towns from August

Kolkata: Sometime mid-August, Kolkata will become the first city in the country to offer air taxi service to steel towns in the regions.

DTDS-a Bangalore-based tour travel operator-has tied up with Kolkata-based non-scheduled airline Spirit Air that has two business aircrafts to operate air taxi service to Bokaro, Rourkela, Durgapur, Burnpur and Jamshedpur. The company has already held talks with Steel Authority of India Ltd and Tata Steel, the two companies that have steel plants in these towns.

"We will be offering regular air taxi service to the steel towns from Kolkata with flying time of 40 minutes for Burnpur and Durgapur; 70 minutes to Jamshedpur and Bokaro and 90 minutes to Rourkela. While we will begin with three-four flights a week to each destination, the frequency will be increased if there is demand," a DTDS official said.While all other towns have airfields, flights to Durgapur will land at Panagarh, 15 km away.

There are two types of aircraft that can be deployed according to the requirement-Cessna Hawk (pilot plus three passengers) and Cessna Grand Caravan (pilot plus 9 passengers).

The first flights are expected to be Bokaro and Durgapur, followed by Jamshedpur, Rourkela and Burnpur.

24/07/11 Times of India

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Airlines flying into headwinds

Only the brave or the foolhardy would venture into the business of flying in the Indian skies. If this is the unflattering first impression one makes after running through the financials of most airlines in India, it would be understandable.

Consider this: National carrier Air India has not made a profit since the merger with Indian Airlines in 2007; it has a mind-boggling debt of Rs 47,000 crore, accumulated losses of Rs 20,300 crore, and is desperately dependent on government handouts for survival. Kingfisher Airlines has not made a profit since inception in 2005, has loans in excess of Rs 6,000 crore (after the recent loan restructuring), and accumulated losses of around Rs 5,300 crore. The net worth of both these airlines today has been badly eroded.

The other original full-service carrier, Jet Airways, made a loss on a consolidated basis in each of the last four years, has debt of around Rs 13,700 crore and accumulated losses of Rs 1,730 crore (as on March 2011). Clearly, not a pretty picture.

The skies, though, look somewhat clearer when it comes to the country's low-cost carriers. SpiceJet, the only listed pure play low-cost airline in the country has posted profits in the last two years (after losses for three years before), and has little debt on its books (at least for now).

The other two low-cost players — Indigo and GoAir — whose financials are not publicly available, are reported to be doing well. Not surprisingly, of late, it is players in this category which have been stealing the thunder, in the sky and also on the airwaves. They have been increasing their market shares and have been placing mega orders for aircraft in anticipation of future growth, mainly in smaller cities and towns of the country.

23/07/11 Anand Kalyanaraman

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Pay up or shut shop: Centre to airlines

Mumbai: It's time to pay up or shut shop for airlines that have hitherto defaulted on their fuel payments.
Under pressure from various state-owned oil companies, top sources within the Union government said they were in no mood to mollycoddle airlines unable to keep their pecuniary distress in check.
"We also have to import oil and have a deadline to clear the dues. Any company, including airlines, should make the payment on time, or we will have to get harsh with them in future," said a senior official from the petroleum ministry.
The official added that payments were pending to various countries, for crude oil import, one such being Iran.
Various news reports have pegged India's debt to Iran at five billion dollars. Iran fulfills about 12 per cent of India's oil requirements. Iran has been demanding immediate payment of its dues from India.
A recent statement by Irani caretaker Oil Minister Mohammad Aliabadi also reflected the pressure on the government to pay up.
"Iran will not cut oil supplies to India which will find a way to pay for its exports within the next two months," Aliabadi had said.
Two major players in the Indian aviation sector, Kingfisher and Air India, jointly owe more than Rs 3,500 crore to oil companies.
23/07/11 Bipin Kumar Singh/MiD DAY

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Air navigation: India developing ground-based augmentation system

New Delhi: As part of efforts to upgrade air traffic management in the country, the Airports Authority of India has launched the process of implementing a critical safety system that uses the global positioning system (GPS) for safe navigation of flights.

This is part of the implementation of the GPS Aided Geo Augmented Navigation (GAGAN) system that would improve air navigation, not only over the Indian airspace but also the airspace over the Indian Ocean region from Southeast Asia to the African shores.

A MoU to implement the ground-based augmentation system (GBAS) as a pilot project at Chennai airport was signed by the AAI and the US Trade Development Agency (USTDA) here recently.

GBAS is a critical safety system that uses GPS for efficient and safe navigation to aid landings, take-offs and surface operations within its area of coverage.

With the implementation of GBAS, India would join a select group of countries which have implemented the technology, an AAI official said.

The GBAS aids landing based on inputs provided through the Global Navigation Satellite System (GNSS) that enables simultaneous landings of aircraft on multiple runways while meeting the precisions of the Category-I to Category-III Instrument Landing Systems.

21/07/11 PTI/Buiness Line

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India's first military chopper pilot passes away

New Delhi: Air Commodore (retd) S.K. Majumdar, the first Indian military pilot to fly a helicopter in 1954, died at the army's research and referral hospital here Wednesday. He was 84.

Majumdar, who was born in 1927 and commissioned into the Royal Indian Air Force in 1948, had pioneered military chopper flying in India.

He had retired from the Indian Air Force (IAF) in 1977 after 29 years of service, according to the Rotary Wing Society of India (RWSI), which had honoured him with the 'Sikorsky Pioneering Award' in 2004 for his work in the field of helicopter aviation in India.

During his IAF service, he achieved many firsts - flying a helicopter, an S-55 Sikorsky, in 1954, first helicopter qualified flying instructor, first to do an amphibious operation, founder of helicopter training unit of the IAF, and first roof-top landing in 1959, the RWSI said in a release.

21/07/11 IANS/ExpressBuzz

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New routes in the air

New Delhi: Air traffic controllers will be participating in test flights across countries along the Indian Ocean, aiming to check out new routes to save on fuel.
According to air traffic control (ATC) officials, the routes will be identified in the next three months and sent for approval to the Bureau of Civil Aviation Security and the Directorate General of Civil Aviation.
“We are working out the details and the process of charting out new routes is still underway. As soon as the final report is made, we will send it to the authorities,” said a senior ATC official. “These flights are being called Inspire flights.” Inspire is an acronym for Indian Ocean Strategic Partnership to Reduce Emissions.
According to the official, the exercise will help airlines to find out new routes that may not only be shorter but also more efficient in terms of fuel use and lower emissions.
“It will allow the airlines to maximise the use of winds, on-board avionics and meteorological updates to chart and file the most efficient flight path,” said an airline consultant who did not want to be named.
19/07/11 Telegraph

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Airlines asked to withdraw charges for seat selection

Airlines have been ordered not to charge passengers for booking preferred seats in advance, a move industry executives say will hurt earnings.

Low-cost private carriers SpiceJet Ltd, IndiGo, run by InterGlobe Aviation Pvt. Ltd and GoAir (India) Pvt. Ltd as well as Air India Express, the low-fare international subsidiary of state-owned Air India Ltd, allow passengers to opt for particular seats, for an extra charge, while booking tickets on their websites. Making such a choice is not mandatory.

“All the scheduled domestic airlines are directed to withdraw such charges with immediate effect under intimation to this office,” the regulator Directorate General of Civil Aviation (DGCA) said in a letter to the airlines on Friday, a copy of which has been reviewed by Mint. “Any mention about the same on the website may also be deleted on an immediate basis.”

Since November last year, DGCA has made it mandatory for domestic airlines to submit an advance tariff sheet, with details of minimum and maximum fares, on the first day of every month. They also have to publish the fares on their websites.

The regulator’s letter said that airlines are violating these guidelines by charging passengers for booking particular seats. “Some airlines are charging this amount for the entire seat inventory, which is contrary to the provisions of rule 135 of the Aircraft Rules, 1937, contained and totally unjustified,” the letter said.

18/07/11 Tarun Shukla/Live Mint

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Rise in the domestic passenger traffic

Nagpur: City's Dr Babasaheb Ambedkar International Airport has registered almost 59 per cent rise in the domestic passenger traffic with a number of new airlines starting their services from Nagpur to cities like Mumbai, Delhi, Pune, Hyderabad, Indore, Kolkata and Bangalore over the last few months.

Sample these figures. Nagpur airport handled 3,69,046 passengers in 2008. In 2009, this figure was marginally reduced by 17,685 passengers to 3,51,361 passengers. However, in 2010 the air traffic from city airport took a quantum leap to 5,60,125 passengers. This makes for a whopping 59% increase over the year. In the first five months of this year (Jan to May), the airport witnessed further growth as 2,89,052 passengers traveled from here or on an average of 1914 passengers daily.

However, despite increase in passenger traffic from here, many facilities announced by Mihan India Limited (MIL), the company operating the airport, are yet to materialize. MIL company secretary Navin Baxi informed that in 2008, daily average of passengers was 1,008 passengers at Nagpur airport, which became 963 in 2009. However, in 2010, he daily average rose to 1,535 passengers. Normally air traffic registers a rise in summer vacations (May and June) and winter vacations (November and December), Baxi informed.

With airport usage increasing, so have been complaints about MIL over even basic facilities. The airport has reduced four-wheeler parking charges and no charge is levied for pick and drop completed within 10 minutes. However several visitors still complain about new 'pay and park' system.

18/07/11 Sachin Dravekar/Times of India

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Indian air-passenger traffic to grow by 18% per annum: Experts

New Delhi: Thanks to the ever increasing spending power of middle and upper classes, the air passenger traffic in the country is likely to see 18% growth rate per annum in the next few years, believe experts. Bearing in mind the huge untapped potential in this sector, domestic carriers are augmenting their fleet size to cater to the growing demand.
Indian carriers like Indigo, GoAir, Jet, Kingfisher and AirIndia are growing their fleet size and have placed huge orders with global aerospace vendors such as Airbus, Boeing and Bombardier in the recent past.
The aircraft strength of Indian carriers stands at 430 aircraft, which is likely to increase to around 900-1,000 aircraft by 2020, say experts.
"The Indian civil aviation is on a consistent growth path. The traffic and cargo are growing at 18 per cent and 10 per cent per annum respectively. The same is expected to continue in the short and medium term," global advisory firm KPMG Director Amber Dubey said.
Independent Aviation Researcher Pran Dasan said Indian have become very "frugal", in terms of commercial air transport as of the expected 140 million air travellers this year, more than 98 million were repeat travellers.
17/07/11 Press Trust Of India/Hindustan Times

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Reforms in the air

No one will dispute the fact that the Directorate General of Civil Aviation (DGCA) desperately needs a makeover. The DGCA came in for a lot of criticism after last year’s air crash in Mangalore and subsequently for its role in the fake pilots scam and reports of corruption. The government now proposes a revamp of the regulatory body, which will go beyond renaming DGCA as Civil Aviation Authority (CAA).
At present the DGCA is only a safety regulatory authority, issuing licences, conducting safety audits and investigating plane crashes. But since the aviation sector is growing rapidly, the government has realised that the regulator needs more teeth. The draft bill, sources say, will now empower DGCA, or rather the CAA, to also regulate airfares, appoint ombudsmen to address consumer grievances, and hear appeals against its decisions at a separate appellate tribunal. Besides, DGCA chief E.K. Bharat Bhushan says, the new reformed regulator will be functionally and financially independent and will hire its own employees.
This all sounds very promising, but it remains to be seen how many of the suggestions actually make it into the final draft bill. But at least something seems to be moving in the right direction at last!
17/07/11 Dilip Cherian/Deccan Chronicle

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DGCA to monitor air tariff hike

Thiruvananthapuram: DirectorGeneral of Civil Aviation (DGCA) E K Bharat Bhushan said that the DGCA would monitor the air tariff hike usually being effected by air taxis during the peak season.
Addressing a "meet the press" programme here on Monday, he said there was a big stride in domestic air traffic during the last five years. Compared to the 2005 figures, there has been unprecedented growth in the domestic market in spite of the economic slowdown during 2007-08 and 2008-09.
The domestic market has crossed the figure of 50 million in the last calender year.
He said in the current year, 24 percent growth is expected. Seven private air taxis having a fleet strength of 433 aircraft were handling 82 per cent of the domestic air traffic. Various private companies also have around 1000 charted aircraft and 278 helicopters.
The number of operational airports in the country will rise to 82 from 65 in 2011. He said the government had decided to merge the DGCA with the Civil Aviation Authority, an autonomous body which will be formed soon. Referring to the safety aspects at the airports in the country, he said the DGCA has been entrusted with the safety auditing. However, the number of safety personnel attached to the DGCA was just 14.
13/07/11 Indian Express

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Civil Aviation authority on anvil: DGCA

Thiruvananthapuram: Formation of a Civil Aviation Authority to address issues of domestic aviation sector is under Centre's consideration, Director General of Civil Aviation E K Bharathbhushan said.
"Similar set up exists in many foreign countries including the US, Sri Lanka and Pakistan. Discussions are on to form such an authority in India and the proposal is under consideration of the Civil Aviation Ministry," Bharathbhushan told a meet-the-press programme here.
In such a scenario, the present DGCA will merge with the Civil Aviation Authority, he said.
On expansion of airports in Kerala,he said next phase of Kozhikode airport at Karippur required 137 acres of land, which the state government was expected to acquire.
The proposal to develop an airport at Pathanamthitta, mooted as an NRK (Non-Residents Keralites) initiative, had not been given approval by DGCA following objections from Defence,he said.
The country's civil aviation sector, which has made a remarkable comeback after the global financial crunch, is witnessing unprecedented growth these days, Bharathbhushan said.
The sector had crossed 50 million mark in terms of the number of domestic passengers last year and registered a 24 per cent growth this year till July, he said.
11/07/11 Indian Express

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Airlines may face trouble in ensuring better connectivity to smaller towns

New Delhi: The aviation ministry is reworking capacity distribution norms for airlines to ensure better connectivity for smaller cities and towns, but the move could spell problems for carriers not geared for small airports.
Experts say that while the new route dispersal guidelines, which require airlines to increase flights to small cities and towns, will boost air transport infrastructure, they can also balloon costs for airlines that don't have smaller aircraft and prefer operating only on profitable metro routes.
"In the new guidelines, we are trying to expand Category I by adding to it small cities from Category III, say Ahmedabad for example, which have good connectivity and demand," a senior civil aviation ministry official said.
The new route dispersal guidelines are awaiting the aviation minister's approval and could be cleared within a few weeks. Non-compliance could lead to an airline's licence being scrapped. Route dispersal guidelines sort out domestic routes into three categories.
Category I represents the profitable routes, including major cities such as Mumbai, New Delhi, Bangalore, Hyderabad, Kolkata and Chennai and Trivandrum.
Category II includes the north-eastern region, Jammu and Kashmir, Lakshadweep and the Andamans. Small cities such as Coimbatore, Kochi and Pune fall under category III.
Airlines have to deploy at least 10% of their capacity on Category I metro routes on Category II routes, and at least 50% on Category III routes.
11/07/11 Anindya Upadhyay/Economic Times

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Expat pilot nos fall by half in 2 years in India

Mumbai: Some airline chiefs believe an expatriate pilot's accent adds to their carrier's brand value, some maintain a sizable number of foreign contract pilots on their employee rolls and pay them handsome salaries on time, as they will never join a strike. Others look at immediate savings and hire trained expatriate pilots, cutting down on command training bills--money spent to train and upgrade a co-pilot to a commander. But the fact is that expatriate pilots have been an integral part of the Indian airlines growth story in the last one decade. The country cannot do without expatriate pilots as there are insufficient trained desi commanders to fill up the left-hand seats in cockpits of its passenger aircraft.
In the last two years, the number of foreign pilots has dwindled by half. According to the Directorate General of Civil Aviation (DGCA), the Indian civil aviation regulatory authority, there were 686 foreign pilots with airlines in India in 2009. As of March 2011, the number was 356. Jet Airways is the largest employer of foreign pilots, with 120 on its rolls as of March, compared to 192 in 2009. The number of foreign pilots employed with charter aircraft companies too went down from 406 in 2009, to 145 as of today.
11/07/11 Manju V/Times of India

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New DGCA rule a breather to chopper pilots

New Delhi: Helicopter pilots will not be prosecuted now on if they refuse to fly or undertake unscheduled landings in case of bad weather or an emergency, with the Directorate General of Civil Aviation (DGCA) issuing instructions to this effect.
The DGCA has instructed that "no punitive action would be taken" if there was an unscheduled landing in case of an emergency, like bad weather, is faced by the pilot, official sources said.
In such a situation, the pilot should immediately land the chopper at a "suitable place", they said quoting the instructions.
The DGCA move followed a recommendation by the Parliamentary Standing Committee on Transport, Tourism and Culture that said pilots should be provided "adequate legal protection to decline to fly in absence of mandatory technical or weather clearances."
In its recent report, the committee headed by CPI(M) leader Sitaram Yechury also suggested that "some kind of penal provision may be considered against those putting such pressure on them without clearances."
10/07/11 NDTV.com

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Airlines to go the BPO way, women staff to be dropped at doorstep

New Delhi: Delhi Police on Friday issued a set of guidelines asking all airlines to ensure that women employees are dropped right at their doorstep by the office cabs. Police issued these guidelines after it was found that "airlines have not been able to monitor these cab operators and ensure safe and secure transportation.''
Women employees, especially air hostesses, working late will now be dropped by their office cabs right at their doorstep and the cab will have to wait till the employee calls out to inform that she's safely inside the house. Tightening the existing norms, Delhi Police issued these orders in the jurisdiction of sub division of Palam (IGI airport).
The move comes after the recent incident in Dwarka, where a Jet Airways air hostess complained that a driver - employed with the same transport agency for the past six years - had tried to molest her in the office cab. Now, senior security officials will also be held liable if they fail to ensure that women employees are not travelling alone with the cab driver at night. A duly verified security guard has to be invariably deployed in each cab carrying women employees. The routes must be chalked out keeping in mind that a woman is not the first one to be picked or the last to be dropped.
09/07/11 Dwaipayan Ghosh/Times of India

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Tracking the flight of black money

It is conceded on all hands that the extant system of monitoring high value transactions through Annual Information Return (AIR) is better and more meaningful than the economic criteria scheme for mandatory filing of income-tax returns. AIR is an excellent smoking-out regime. It calls upon recipients of high amounts or registrars of high value transactions to notify the Income-Tax Department.
As it is, the registrar registering immovable properties have to notify the Department if the transaction value is Rs 30 lakh or more; the Reserve Bank of India and companies have to notify if anyone subscribed to bonds for more than Rs 5 lakh during a year; companies have to notify the names of persons putting in more than Rs 1 lakh as subscription amount in an IPO or FPO; mutual funds if they mobilise more than Rs 2 lakh as subscription from a person and banks if a person has during the year made payments upwards of Rs 2 lakh through its credit cards or deposited more than Rs 10 lakh in cash into his savings account with the bank. All these are required to be notified at the end of the year.
And for good measure, the person who are under surveillance, as it were, are also obliged to disclose all these details in their tax returns. The idea is the two have to jell — the one reported by those coming into contact with high value transactions and the one reported by those indulging in them.
09/07/11 S Murlidharan/Business Line

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High prices, competition may hurt airline results

New Delhi: India’s three listed airlines may have made losses in the quarter ended June, owing to high jet fuel prices, excess capacity and fierce competition for passengers, analysts said. Two of the carriers made profits in the last fiscal.
The quarter is considered the second best for domestic airlines, next to the October-December period, which is dominated by the holiday season.
“On the operating level front, (it’s) not so good a quarter for the airlines sector,” said Rashesh Shah, analyst at Mumbai-based brokerage firm ICICI Securities Ltd. “All three companies are going to report a loss on an operating level even though the top line will continue to grow healthy.”
Listed carriers Jet Airways (India) Ltd, Kingfisher Airlines Ltd and SpiceJet Ltd together command a 60% market share.
Jet Airways is estimated to have made a loss of Rs335.8 crore, Kingfisher Airlines a loss of Rs377.3 crore and SpiceJet a loss of Rs75.5 crore, Shah said.
This compares with a profit of Rs8.4 crore for Jet Airways, a profit of Rs55.22 crore for SpiceJet and a loss of Rs187.35 crore for Kingfisher in the year-ago period.
Jet Airways is expected to have lost Rs500 crore “driven by the sustenance of high crude prices (brent around $120) over the entire quarter” despite an “overall revenue growth at 13%”, said Mumbai-based IDFC Securities Research, which does not track Kingfisher and SpiceJet.
07/07/11 Tarun Shukla/Live Mint

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India on high alert; airlines fear fidayeen attack

New Delhi: India on Thursday issued a high alert directing the airports throughout the country to tighten the security, according to Zeenews sources.
The cautious step was taken after the US warned all international carriers flying directly into its territory about terrorists surgically implanting bombs inside their bodies to carry out attacks.
As per the latest intelligence input gathered by the United States, which is a major target of the terrorists across the world, especially those based in Pakistan and Afghanistan, terrorists are resorting to a much sophisticated method of concealing the bombs within the body to stage suicide attacks on passenger jets and airlines. It should be noted that in spite of the advance in global aviation security technology, the scanning machines are not able to trace the bomb that could be surgically embedded inside the human body.
"This is new intelligence about a possible technique that could be used, however there is nothing to indicate an imminent threat," a senior US security official had said.
Tough measures to maintain strict vigil are expected to be in place at Indira Gandhi International Airport in New Delhi and the Chatrapati Shivaji International Airport, which have flights having last-point-of-departure to the US. The passengers at these two Indian airports might have to go through a tighter security drill as a result of the latest terror alert.
07/07/11 Dinesh Sharma/ZeeNews

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ASSOCHAM calls for rationalising tax structure to encourage aviation MRO units

New Delhi: Leading industry body ASSOCHAM today called for streamlining various taxes to encourage aviation maintenance, repair and overhaul (MRO) facilities as the country has huge potential to become a major hub due to low cost benefits, favourable geographical location and sharp upswing in air passenger traffic.

The Indian civil aviation sector is currently celebrating 100 years of existence but its share is just one per cent in the 50 billion dollar global MRO market.

Passenger traffic of scheduled airlines jumped from 73 million in 2005-06 to 142 million in 2010-11, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM). “By a conservative growth rate of ten per cent, the throughput is expected to be 540 million passengers by 2025,” said its secretary general D.S. Rawat.

At the same time, cargo traffic is expected to touch nine million tonnes from 2.33 million tonnes in the last financial year. India’s scheduled airlines have 430 planes now. Industry estimates suggest this figure is likely to go up to 1,500 by 2025.

Besides, the general aviation comprises of 700 small planes and 300 helicopters. In addition, the business jet fleet has about 140 aircraft. This is expected to grow to 2,500 aircraft and 900 helicopters.

05/07/11 Orissadiary.com

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Boeing Values India Market for 1320 New Airplanes at $150 Billion

New Delhi: Boeing forecasts a $150 billion market for 1320 new passenger airplanes in India over the next 20 years as the economy aims for double-digit growth, stimulating strong demand for new and replacement airplanes. Boeing India President Dinesh Keskar shared the forecast today with Boeing’s outlook for India’s commercial airplane market through 2030.

"Robust growth with new economic prosperity amongst a massive Indian population, discretionary incomes, business progress and access to airports will increase airplane demand,” Keskar said. "In 2011, the economy continues to do well. Indian air carriers are becoming profitable and we expect the GDP to maintain its upward trend in the long-term. As a result, both the air travel and air cargo markets will grow.” Keskar also said that airline revenue and yields were up, but high inflation and volatile fuel prices will play a pivotal role in the health of the industry.

Passenger traffic, which has reached 53.6 million domestic (fiscal 2011) and 13.1 million international, is expected to grow at 8.1 percent annually over the long-term.

“The economic and air-traffic growth will in turn stimulate demand for a variety of aircraft types,” Keskar said. “The need is great for new airplanes that can efficiently and profitably fly short and long-haul routes. This demand is driven by growth in developing and emerging cities, demand from low-cost carriers and the need to replace an aging fleet.”

05/07/11 Manufacturing.Net

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Global firms to line up for civil aircraft project

Bangalore: Global engine makers have evinced keen interest to take part in India’s proposed Rs 7,555 crore national civil aircraft development (NCAD) programme, expected to give a major boost to civil aviation industry.
Bangalore-based National Aerospace Laboratories (NAL), under the Council for Scientific and Industrial Research (CSIR), has already completed a feasibility study on the design and development of a national civil aircraft for regional connectivity under the guidance of a High Powered Committee (HPC).
“Many of the engine manufacturers came and talked to us. They have made presentations about their products”, Chairman of the HPC, G Madhavan Nair, told PTI.
“We had detailed discussions with engine manufacturers”, he said. Based on detailed market studies, configuration definition of a baseline 90 seat, twin turbofan engine powered aircraft has been completed under the oversight of the HPC, which submitted the feasibility study report to Government in May this year.
Nair, a former Chairman of Indian Space Research Organisation (ISRO), expects formal Cabinet approval for the project in two-three months and said he does not anticipate any problem in its clearance as the programme has been welcomed by all government quarters. According to officials, the aircraft would help connect tier-II and tier-III cities with major metros, thereby boosting inclusive economic growth.
04/07/11 Press Trust Of India/Business Standard

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Tea parties to warm up mid-air talk

Mumbai: To improve communication between pilots and the air traffic controller (ATC), pilots from three leading domestic carriers have begun an informal process to iron out the differences. Pilots and air traffic managers will discuss safety issues such as language shortcomings, accent differences and aviation jargon in a series of candid tea parties that will be held across the country.
A month ago, the country’s aviation regulator had asked pilots and the ATC to brush up their communication skills. The Directorate General of Civil Aviation (DGCA) had cited a National Aeronautics and Space Administration (NASA) report, which stated that 80% of aircraft accidents occur because of incorrect information exchanged between the ATC and pilots, and 33% because critical data is not shared.
The communication gap has led to near mishaps in the past. In 2009, the ATC failed to alert a Kingfisher pilot about the runway being wet. The aircraft skid at the Mumbai airport putting the lives of 42 passengers at risk. The DGCA’s probe found that an Air India pilot had alerted the ATC about water on the runway, but the controller did not understand the message.
04/07/11 Soubhik Mitra/Hindustan Times

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Airlines hawk tour packages

New Delhi: Domestic and international airlines are offering travel packages to flyers that cover not only tickets to the place of travel but also hotel bookings and local conveyance.
Facing a major cash crunch, Air India has realised that the best way to stay afloat is to rely on packages.
According to a senior Air India official, “We are trying to offer packages throughout the year. Summer still is one of the busiest travel seasons; so there are assured footfalls. Package services do add 20 per cent or more bookings for the entire season. But now we are trying to concentrate on business travellers who make for 77 per cent of our passengers.
“We will in the next few months try and launch eight packages targeting business travellers who look forward to the one-stop shop concept and web-based travel and stay plan,” the official said on the condition of anonymity.
IndiGo offers nearly 150 packages for 30 destinations, which include religious, business and leisure tours. Hotel chains have also shown an interest, with Accor Group, Fortune, Sarovar, The Pride and Lemon Tree joining the IndiGo service.
04/07/11 Karan Choudhury/The Telegraph

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About mid-air woes

Last month, a 42 year old Estonian woman died after a heart attack on the Delhi- Goa SpiceJet flight. Though a doctor travelling on the same flight tried to save her, he failed since there was no emergency equipment on board. Just weeks earlier, a man with cardiac issues and asthma died on a SpiceJet Kochi-Delhi flight. The airline has refused to respond to inquiries about whether or not they had a cardiac defibrillator on board. Also known as an automated external defibrillator (AED), this is a life-saving piece of equipment for cardiac emergencies.

In the absence of a defibrillator, the chances of survival decrease by 10 per cent every minute. Yet the guidelines set by the Director General of Civil Aviation (DGCA), on carrying these machines on board are almost random: They are required on domestic flights based on a "risk assessment" but mandatory for all international flights of two hour duration or more.

Air travel is fraught with risks. The drop in air pressure within an airline cabin during ascent poses risks for those with cardiovascular, respiratory or blood disorders. Dry air and restricted seat space gives rise to muscular and circulatory problems too. Indian airline operators are supposed to follow the DGCA guidelines regarding medical equipment to be carried on board. This includes a general 'first aid kit'; a 'medical kit' with emergency drugs to be administered only by a doctor; and a 'Universal Precaution Kit' for cabin crew members to manage "incidents of ill health associated with cases of suspected communicable diseases." Some of the contents of this "universal" kit are a germicidal disinfectant and a bio-hazard disposal waste bag.

This is all very well, but global data on mid-air deaths shows that these are mostly caused by strokes, heart attacks or asthma. What have germicides got to do with this? Priority needs to be given to having equipment on board to deal with these emergencies and training flight attendants in emergency procedures - how to handle an epileptic fit, allergy attack, heart attack and onboard births. They should know when oxygen is required and when CPR will do the trick. Familiarity with emergency medicines is mandatory.

03/07/11 Ritu Bhatia/India Today

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'Ensure adequate flights for Haj pilgrims'

Guwahati: The state Haj committee has written a letter to the Haj Committee of India (HCI) to ensure that all pilgrims have a safe flight to Mecca for the holy prayers. Citing problems of inadequate flights, state minister for Haj affairs, Nazrul Islam, asked the HCI to ask local airlines to chip in. Last year, many pilgrims who had deposited money, form, passport and even got visas from Saudi authorities, were unable to fly as there were no or few flights.

"Last year, the HCI had selected some Saudi Arabia-based airlines to carry the pilgrims but they were not enough in number and many pilgrims were stranded. This time I have written to the HCI to select a local airline. We hope Air India can do a better job," said Islam.

This time, the Assam Haj Committee has received 3,953 applications out of which 1,026 applicants have already submitted their valid documents. Some 50 applicants are still to submit their documents and awaiting clearance from the authority. The last date of submitting applications is July 10.

02/07/11 Times of India

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Air turbine fuel VAT slashed to 4% in Amritsar

Amritsar BJP MP Navjot Singh Sidhu on Friday hailed state government’s decision to slash VAT on Aviation Turbine Fuel (ATF) from 22 per cent to 4 per cent. He termed it as a step in the right direction to save the Sri Guru Ram Das International (SGRI) Airport.
He said slashing of the taxes will directly benefit airlines, which would get cheaper fuel and may show more interest in operating from here.
Sidhu, who had taken up the matter with Chief Minister Parkash Singh Badal said that various airlines had stopped operating from the local airport in the recent past.
“The act (of reduction of VAT) would be an incentive to airlines and their interest will be regenerated,” he said, adding that the Chief Minister’s decision was a much desired gift to the “holy city”.
“The ATF constitutes one of the major portions of operating costs of any airline. The ATF is cheaper in Chandigarh and many airlines were diverting their operations (flights) to the union territory. Now they will prefer to start operating from here again and this will benefit the non-resident Indians (NRIs) and pilgrims, visiting the city of Golden Temple’’, he said.
02/07/11 ExpressIndia

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Business aviation makes inroads in Asia

The Asian market is waking up to the fact that companies using business aircraft earn more than those that don’t (141 percent more, according to an NBAA analysis). However, there are many obstacles remain to developing the private aviation sector in that part of the world. Until recently, no single Asian voice addressed the benefits and hurdles of establishing business aviation, but that is changing as the region’s associations begin to work together to create a more friendly environment for the segment.
During a session on international operations at the European Business Aviation Convention & Exhibition , three regional association leaders from Asia spoke about their respective territories: Capt. Karan Singh, vice president of the Business Aviation Association for India (BAAI); Jean-Noel Robert, chairman of the Asian Business Aviation Association (AsBAA); and Kazumobu Sato, vice president of the Japanese Business Aviation Association (JBAA), talked about the challenges of developing the sector in their respective locales.
India has seen strong and steady growth, with an installed fleet that has almost doubled since 2006, said Capt. Singh. The BAAI predicts there will be 1,793 business aircraft in India by 2020, but key to this development are infrastructure training and work on regulatory issues. India has a particularly difficult regulatory environment. For example, private aviation compliances are on a par with those of scheduled airlines so obtaining an operator’s permit is a lengthy process. In addition, there are hefty taxes on fuel, service and customs.
Fewer than 150 airports are open to business aviation, and facilities are substandard when compared with those of other countries, with limited parking space and customs and excise availability. Ground handling options are limited and expensive. Singh added, “To make things work we need ground handling, airports and heliports, maintenance faculties, spares and FBOs. We also need consulting, manufacturing and management and training.”
01/07/11 Liz Moscrop/AINonline

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GR Gopinath’s intra-state aviation plan nixed

New Delhi: Low-cost aviation pioneer GR Gopinath’s dream of providing intra-state connectivity in Gujarat, Madhya Pradesh and West Bengal may remain just that — a dream.
The Director General of Civil Aviation (DGCA) has turned down his proposal to begin charter services in these states, citing many loopholes in his application for importing two 72-seater ATR aircraft on wet lease.
Under wet lease, an airline hires not just an aircraft but pilots and crew.
Unless the Ministry of civil aviation overrules DGCA and grants permission to Gopinath, Deccan Charters’ plans will not takeoff.
Gopinath said DGCA had earlier given him approval to import aircraft on wet lease, but stopped the import mid-way in Dubai some time back, despite an assurance that the wet lease would be converted to dry lease (so that Indian pilots and crew can be used) within 3-6 months.
But DGCA officials said no permission was given to Gopinath to import aircraft, only a no-objection certificate was granted and that wet lease is anyway allowed only under very specific circumstances.
“A non-scheduled operator permit (NSOP) holder bringing an aircraft from overseas has happened only once in the last 15 years. This could lead to undesirable consequences such as foreign aircraft owners resorting to this device and freely operating within the country without mandatory security checks in foreign crew. There are more than 130 NSOPs and the short-staffed DGCA cannot check each and every instance.”
The regulator noted that Gopinath produced security clearance certificates for foreign pilots and engineers for charter operations which were more than one year old.
01/07/11 Sindhu Bhattacharya/Daily News & Analysis

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Distance between planes in flight reduced

Chennai: The distance between two airplanes in flight has been reduced from 80 nautical miles to 50 in the southern region owing to increasing traffic. This reduction will also help save fuel.
The Airports Authority of India (AAI) on Friday introduced a Reduced Horizontal Separation (RHS) standard between aircraft on two major international routes crisscrossing the Bay of Bengal – Arabian Sea region following guidelines of International Civil Aviation Organization (ICAO).
According to AAI, the decision is following a requirement to enhance the utility of existing air space considering the increasing air traffic.
The new change in RHS will allow aircraft to fly in 50 nautical mile distance in the region against the previous 80 nautical mile minimum separation. The reduced separation will help to save at least 1.2 tonnes of fuel per flight and reduce 3.6 tonnes of carbon emissions.
01/07/11 Times of India

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Air China expands India operations

Mumbai: Air China, which operates on the Delhi and Bangalore routes, is set to expand its services to India with a Beijing-Mumbai flight from September. The airline will be the first among the three Chinese airlines operating in India to touchdown at the Mumbai airport.
The only direct airlink between Mumbai and China is Air India's tri-weekly flights to Shanghai. Jet Airways had launched flights from Mumbai to San Francisco via Shanghai a few years ago, but the service was suspended following losses. Jet Chairman Naresh Goyal had recently said the airline was looking to introduce flights to Shanghai and Beijing as part of its expansion plans.
Sources familiar with Air China's plan said it hopes to tap the growing business and leisure traffic on the route. The Mumbai-Beijing flight will stop over at Chengdu. The airline will be using a narrow body airbus A319 aircraft with a two-class layout. An airbus A319, can be fitted with 122-145 seats depending on the class configuration.
“Currently most people flying to Beijing fly via Delhi or transit from Bangkok or Hong Kong. China has emerged as a key venue for trade fairs and exhibitions. Also, a large number of Indian traders and importers travel to China. Leisure travel to China has also picked up,” said Iqbal Mulla, treasurer of Travel Agents Association of India.
01/07/11 Aneesh Phadnis/Business Standard

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Juhu chopper operators want ATCs to improve coordination

Six months after helicopter operations were shifted to Juhu from Mumbai’s CSIA, chopper operators have approached the Mumbai ATC to improve coordination between the two ATCs and reduce delays. Operators say that despite helicopter corridors over Mumbai airspace, pilots at times end up waiting for an hour or two at Juhu airport or at the Mahalaxmi racecourse helipad, before clearance comes from Mumbai ATC.
“Transfer of corporate directors and senior business executives from helicopters to private jets parked at Mumbai is currently hampered. Limited operation of corporate helicopters at Santacruz airport should be allowed for better connectivity,” said Captain Uday Gelli, president of the Western Region Rotary Wings Society of India. “Operations out of Mahalakshmi helipad need to be streamlined for quick clearances for departures from the helipad. There have been instances when business heads using their helicopters had to wait for long periods to get clearance from Mumbai ATC,” he said.
A Mumbai ATC official who was present at a coordination meeting with Juhu operators, both ATCs, and the DGCA earlier this week, said operators had made “certain demands, which cannot be met.”
01/07/11 Ranjani Raghavan/Indian Express

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Oil companies likely to cut ATF cost by Rs 350/kl

State-run oil marketing companies are likely to cut aviation turbine fuel(ATF) cost by around Rs 350 per kilolitre, say oil ministry sources. There could be another sharp ATF price cut on July 16 if oil remains at the same level. Oil marketing companies like Bharat Petroleum, Hindustan Petroleum and Indian Oil revise ATF price every fortnight depending on the global crude oil prices.
Currently ATF is being sold at over Rs 51,000 a kilolitre in Mumbai and Delhi which is nearly 70% higher then what the commodity costs in Malaysia or any Middle East and Gulf regions.
Airlines like Jet Airways , Kingfisher Airlines and SpiceJet along with other carriers are collectively lobbying to get a uniform sales tax structure pan India Andhra Pradesh, Kerala and Rajasthan are the only states which pay 4% tax on the commodity. Currently, Delhi pays around 20% tax on ATF, Mumbai pays 24%. Sales tax on ATF varies from 4% to as high as 34% in various states.
Meanwhile, after announcing the Q4 results of FY11, airlines had said their profits had dented over 20% due to the spiraling fuel cost and airlines could not pass on the burden to end-consumers in the form of higher fares.
“If the trend continues, we will have to pass on the burden to our customers but it will be done gradually,” Sudheer Raghavan, Jet’s chief commercial officer had said in the earnings call in May.
30/06/11 moneycontrol.com

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Global air passenger traffic up 7 percent in May

New Delhi: The global airlines association on Thursday reported an increase of 6.8 percent in international passenger traffic for May this year, compared to the like period of 2010.
According to the International Air Transport Association (IATA), the positive passenger growth in May has helped in reducing pressure on profits in the high fuel prices environment, but freight segment has continued to be in a slump, with a downfall of 4 percent.
"This (passenger traffic) is 4 percent higher than the beginning of the year, whereas freight traffic has showed a drop of 4 percent against the post-recession peak of the re-stocking cycle in May 2010," IATA said in a statement.
The statement said that India's domestic demand was robust at 13.8 percent in May as compared to previous-year levels with a capacity expansion 19.9 percent.
30/06/11 IANS/Economic Times

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