Aviation school conducts admission tour

Hyderabad: Carver Aviation, a Pune-based flight school, organised an admission tour in the city. The academy’s trainers told students that the sector was expectedto have a high growth in the future. India would be the third biggest aviation market in the world by 2020 with 1,174 aircraft and 285 helicopters, Carver’s trainers told the students.

Pilot-training and aircraft maintenance would be covered as part of the course. Training would be given on single-engine and multi-engine aircraft. A total of 200 hours of pilot-training is mandatory for any candidate to apply for the post of commercial pilot. The aviation school charges Rs. 26 lakh for single-engine flight-training and Rs. 28.5 lakh for multi-engine training. The college had produced 12 commercial pilot trainees in the past six months.
27/06/17 The Hindu

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MPs want VVIP treatment on airlines, seek auto upgrade, better food

A house committee of MPs has recommended that parliamentarians be given preference in private airlines. Apart from an auto upgrade to business class and better menu onboard, parliamentarians are also seeking personal briefing by customs officials on what they can carry duty-free from foreign tours.

The recommendations were made by the panel during a meeting with Civil Aviation Minister Ashok Gajapati Raju. The House panel headed by Karnataka BJP MP Suresh Angadi suggested that private airlines give first preference to parliamentarians just like Air India does and offer front row seats as that MPs can leave the aircraft early.
Sources from the MP's office confirmed the recommendations made but maintained that the report was not for public consumption. "Some recommendations have been made to make air travel easy for parliamentarians. MPs are in a rush and need to be faster and the recommendation is only aimed at that," the source added. Recommendations have been made by the consultative committee on Civil Aviation to direct airlines including private ones to automatically upgrade an MP's ticket to business class in case there are seats available. The committee has also asked for Airlines to regularly review the food served so as to alter the menu and avoid repetition.
17/06/17 Anusha Ravi/One India

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Should airlines punish our lawmakers?

Getting late for a train or a flight is part of the common pool of everyday nightmares—its frustrations belong to the moment, its effects usually not long-lasting. How we cope with it depends on our personality. Some of us take it as part of the ebb and flow of luck. Some verbalise the anger of the moment at those who perhaps have the discretion to help us but choose not to. Some, like Telugu Desam Party MP J C Diwakar Reddy did at Visakhapatnam on Thursday, go even further and get physical.

It appears that he is a repeat offender. Now, it’s plain to see a clear line of propriety is crossed here. MPs are representatives of the people and should keep to a minimum standard of behaviour in public. The dignity of office has to be earned, partly by accepting the role of exemplars and we all know how deficient our politicians have been in this respect.
At the same time, the response of airlines—four of them have banned him on all future flights—poses a different question. A pattern is emerging here, with the case of Shiv Sena MP Ravindra Gaikwad fresh in mind.

It’s no one’s case that the two were not boorish or did not abuse their privileged position. But they are members of Parliament, and the right way to end such delinquency is via the Parliament secretariat and/or the Speaker. It should be the job of the legitimate authority to bring them in line—they could do this by cancelling their free privileges or any other means they deem fit.
17/06/17 New Indian Express

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From Ravindra Gaikwad to Diwakar Reddy: Why a no-fly list should have been ready by now

New Delhi: Shiv Sena MP Ravindra Gaikwad beat up an Air India staffer with his slippers in April this year. This led to all domestic airlines promptly barring him from flying in a month when he had to frequently travel to Delhi to attend Parliament. He was allowed back aboard only after a weak apology to the Minister of Civil Aviation and after the Lok Sabha Speaker also seemed to suggest that a mere apology will correct this bizarre situation. So will the aam aadmi, who in case misbehaves in a similar fashion while on board, be allowed back after a mere apology? Nah. This privilege, like so many others, has till now been reserved only for the peoples’ representatives. Yesterday, another MP allegedly misbehaved with the crew of a private airline and was similarly barred by all the airlines from flying later in the day.

An NDTVreport said JC Diwakar Reddy, the Telugu Desam Party lawmaker who created a ruckus at the Visakhapatnam airport after being denied a boarding pass for arriving late by IndiGo, refused to apologise for his behaviour. Perhaps, even seeking an apology for atrocious behavior is asking too much of our MPs. Remember, Diwakar Reddy is from the same political party as Civil Aviation Minister A Gajapathi Raju, and the minister has already denied asking IndiGo to allow Reddy to board the flight yesterday after the incident. It seems despite the violence he unleashed at the airport, IndiGo did allow him to fly and the ban by this and other airlines was imposed later.
16/06/17 Sindhu Bhattacharya/First Post

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Fliers to pay less for excess checked-in baggage from Friday

New Delhi: From Friday onwards, fliers will be required to shell out lesser money for excess checked-in baggage up to a certain limit as the revised fee structure comes into effect.
Extra baggage on board to cost cheaper from 1 July 2016. ReutersExtra baggage on board to cost cheaper from 1 July 2016. Reuters
Under the new tariff regime, only Rs 100 would be charged per additional kilogramme of checked-in baggage up to a
certain level compared to the existing charge of Rs 300 per kg.
The reduced rates, announced by the government earlier this month, was initially scheduled to come into force from
15 June. However, the implementation date was extended to 1 July by aviation regulator DGCA after airlines sought more time to upgrade their system.
Currently, all domestic airlines allow free checked-in baggage up to 15 kg. Beyond that, they charge Rs 300 per extra kg. Only Air India allows a free baggage of up to 23 kg.
30/06/16 PTI/First Post

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Cabin baggage tags will soon become a thing of the past

You may no longer have to put tags on your cabin bags and get them stamped at the security check point as the government is planning to do away with the process, in-line with the international practice followed at airports abroad.

In this regard, the Civil Aviation Ministry has asked the Bureau of Civil Aviation Security (BCAS) to form a panel to review cabin baggage tags and submit a report in four weeks.

"The good thing about the aviation secretary is that he works with timelines. He has given BCAS four weeks to decide on the abolition of cabin baggage tags across India," a senior executive of an airline told ET, adding "This issue is being discussed for long and despite a consensus on its abolition, we have not been able to abolish it."
Presently, all passengers carrying cabin baggage have to tie a tag to it and get it stamped at security check before boarding a flight.
But, few experts suggest there is no way a bag can enter the secure zone without being checked.
30/06/16 Business Insider

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Intense competition amongst airlines becomes customer's gain as last minute airfares were 52% cheaper this year

If you are planning to book air tickets for your next holidays, and are worried about the extra money that you have to shell out because of booking tickets at the last minute, which is 15 days before their travel date, relax!
Turns out, booking air tickets last minute has become cheaper up to 52% as compared to last year, because of intense completion amidst airlines, excess capacity and lower fuel prices.
Yatra.com analysed the fares and came out with a conclusion that average fares for travel on all dates between June 29, 2016 and July 4, 2016, when booked on June 28, 2016, were cheaper by up to 50% as compared to fares booked during the same time last year.
"We are seeing a significant drop in airfares across sectors and this can be attributed to a reduction in oil prices by over 20% on a year-on-year basis, as well as a 7-8% increase in passenger capacity by the airlines. The drop in airfares has resulted in strong passenger demand which is up by 22% this year, resulting in increased passenger load factors and improved financial health of the sector as a whole," Yatra.com president Sharat Dhall told ET .
30/06/16 Business Insider

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Airfare sale: Now, fly for as low as Rs 849 as discount offers galore

To beat the lean season, Indian budget carriers, including GoAir, IndiGo and AirAsia have come up with attractive airfares beginning July to September. For airlines, June to mid-October is the lean season as schools open after summer break.
After GoAir , which has announced a monsoon bonanza with ticket prices as low as Rs 849, IndiGo Airlines are now offering ticket fares starting at Rs 1,106 (all inclusive). Customers can get the ticket booked to travel between July 1 and September 30th. Earlier, IndiGo had launched promotional fares starting at Rs 789, all inclusive.
IndiGo website showed that as part of the new Rs 1,106 offer, a one way ticket from Jammu to Srinagar will cost Rs 1,106, while Delhi to Mumbai Rs 2,749.
“Airlines offer discount schemes during the lean season—ie., June to September. This is the time when travel domestically and internationally is a bit slow and in order to encourage leisure travellers to go on a short vacation, airlines offer such fares. The discount range from 15 to 20 per cent. However, there is also a catch here, the discount is on the basic fare and that at times could be low. Finally, the discounts do get sold out early so it is advisable to book early, John Nair, Head, Business Travel, Cox & Kings Ltd said.
30/06/16 Navneeta Srivastava/Financial Express

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Tejas Isn't Among World's Best Fighter Jets. But It's A Big, Big Bonus.

New Delhi:  It's been almost every Air Chief's favourite whipping boy - an Indian-built fighter jet delayed so inordinately that it came to be seen as a promise that would never be kept.
But three decades after the Tejas Light Combat Aircraft went into development, there is a grudging acceptance that the fighter which will be officially inducted into the Air Force today in Bengaluru is, in many ways, world-class.

While the delay in delivery cannot be justified, there have been fierce debates on why that happened. State-run Hindustan Aeronautics or HAL, which is the lead player in the Tejas project, says the air force kept shifting the goal post on what exactly it wanted from the jet. The manufacturer also says it was hit by sanctions imposed by the US after the Pokhran nuclear test in 1998, which placed crucial technology out of reach.

The Air Force, for its part, has insisted there are better options available in the world market, jets built by manufacturers who have been in the business of military aviation for decades. The Tejas, they have argued in the past, will be obsolete by the time it enters Air Force squadron service.

Except it isn't. Not in the least.

Equipped with a modern Israeli multi-mode radar, the Elta 2032, state-of-the-art Derby air-to-air missiles to attack enemy jets, and modern laser designator and targeting pods to hit ground targets, the Tejas is, in many ways, as capable as the French-built Mirage 2000, the aircraft used by HAL as its benchmark. Every pilot that has tested the jet has sworn by the Tejas's flight control system and the ease with which it manoeuvres. Not a single Tejas fighter has been lost to an accident during flight tests during 3,000 sorties.
01/06/16 Vishnu Som/NDTV

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'Made in India' Tejas to be inducted in Air Force on Friday

Indian Air Force will raise the first squadron of home-grown Light Combat Aircraft (LCA) Tejas with the induction of two aircraft into the force in Bengaluru on Friday.
State-run Hindustan Aeronautics Limited (HAL) will hand over the first two Tejas aircraft to the Air Force which will make up the 'Flying Daggers' 45, the name of the first squadron of the LCA.
The LCA squadron induction ceremony will be held at the Aircraft System Testing Establishment in the presence of Air Marshal Jasbir Walia, Air Officer Commanding-in Chief, Southern Air Command, officials said.
The aircraft are likely to perform a sortie during the induction ceremony.
The squadron will be based in Bengaluru for the first two years before being moved to Sulur in Tamil Nadu.
Air Chief Marshal Arup Raha, who on May 17 took his maiden flight in Tejas, had termed the aircraft as "good" for induction .
Air Force has said the idea is to have a total of six aircraft this financial year and about eight in the next.
30/06/16 Times of India

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Strong economic growth in India will fuel bizav market

Global Jet Capital, a provider of financing solutions for large-cabin, long-range business jets, expects demand for business aviation in India to increase as a result of the country’s strong economic growth.

Simon Davies, Vice President, Sales - India at Global Jet Capital is currently in India meeting prospective clients who are looking for finance to support potential acquisitions of mid to heavy business jets.

New research from Global Jet Capital reveals that over the last decade (2006-15), 70 mid to heavy business jets were delivered to India, with a combined value of around $3.5bn. The company says these aircraft typically cost between $25m and $75m each, and up to 80% of the funding used to purchase these is sourced through external financing. The Indian business aircraft fleet has a greater proportion of mid-sized to heavy jets than the global average. 44% of the Indian fleet is classed as mid-sized to heavy, compared with a worldwide figure of 31%, indicating that demand for finance from Indian buyers is likely to be greater than from other regions.

The aviation finance specialist, which recently completed the purchase of the aircraft lease and loan portfolio of GE Capital Corporate Aircraft in the Americas representing approximately $2.5bn of net assets, has around $1bn to lend to clients to purchase relevant business aircraft in India and elsewhere around the world.

Simon Davies says, “For the fiscal year 2015 - 2016, India’s GDP growth was around 7.6%, and some market commentators are predicting that growth will gain momentum in 2016 - 2017, with GDP growth of around 7.8%.
30/06/16 BlueSky Business Aviation News

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Kamineni seeks early action on air ambulances

Vijayawada: Health Minister Kamineni Srinivas discussed the proposed introduction of air ambulances in Andhra Pradesh, with Civil Aviation Minister Ashok Gajapathi Raju in Delhi on Wednesday. These flights would drastically reduce the time consumed by transportation of organs to hospitals where transplantations take place.

Addressing media persons at Delhi on Wednesday, Mr. Srinivas said that movement of organs by road was time-taking and involved a lot of logistical constraints. Air ambulances would therefore be of great use for recipients of organs, he asserted, and requested necessary action at the earliest.
30/06/16 The Hindu

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K Air announces the acquisition of two jets and sale of an Agusta 119K helicopter

K-Air,an aircraft sales company in India, is pleased to announce the signing of MOU for the acquisition of a Falcon 2000Ex Easy II and a Challenger 605 with two undisclosed corporates. Both the Aircraft are expected be delivered by Aug 2016.K Air also closed on the sale of a pre-owned 2006 Agusta 119 Helicopter. The helicopter will be based in USA and shall be used for charter operations.

Robin Cherian, Director, K-Air said today’s announcement marks the first sale by K-Air in 2016, taking the tally of sales to 78 aircraft since inception.

“The Agusta 119K was chosen as it was best matching the performance and pricing parameters that were set for this transaction. Though K-Air has cornered 40% of Aircraft transactions in India, we expect a higher percentage of sales across all aircraft segments with the DGCA ironing out many significant roadblocks. We are committed to assist the interested buyer whether it is a corporate, HNI or an operator in selecting, financing and purchasing the right aircraft,” Robin Cherian concluded.


K-Air is the area sales representative of Kaman Helicopter Inc in India. Follow @k_aircharters on Twitter for the latest news and updates.
30/06/16 Openpr.com

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AAI sets up panel to study hiving off air navigation services

New Delhi: Reviving a long-pending proposal, the Airports Authority of India (AAI) has set up a two-member expert panel to explore ways to hive off air navigation services into a separate entity
Even though the idea to make Air Navigation Services (ANS) a separate and independent unit was mooted in 1970s, there has not been much movement forward despite some detailed studies being done in this regard.

The two-member expert panel comprises former Civil Aviation Secretary Ashok Chawla and former DGCA Chief Satinder Singh, a senior official said.
The two-member expert panel comprises former Civil Aviation Secretary Ashok Chawla and former DGCA Chief Satinder Singh, a senior official said.

According to the official, the committee, which would look at ways of making ANS a separate unit from AAI, is expected to submit its report within three months.
The setting up of the panel assumes significance against the backdrop of rising domestic air traffic which is expected to go up further following the implementation of the new civil aviation policy.
29/06/16 PTI/Economic Times

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HC refuses to stay DGCA order on lower excess baggage fee

New Delhi: The Delhi High Court today refused to stay aviation regulator DGCA's decision to lower the fee structure for excess checked-in baggage carried by fliers, with the government fixing a rate of Rs 100 per additional kilogramme.

As per the new regulation to be implemented from July 1, the airlines would now charge Rs 100 per extra kg till 20 kg instead of the current rate of Rs 300.

At present, all domestic airlines allow free checked-in baggage up to 15 kgs. Beyond that limit, the charge is Rs 300 per extra kg. Only Air India allows free baggage up to 23 kg.

A vacation bench of Justice V Kameswar Rao turned down the request made by Federation of Indian Airlines (FIA), which has Jet Airways, SpiceJet, IndiGo and GoAir as its members, saying the issue before it required consideration and the authorities have to be heard on merit.

The court issued notice to the Ministry of Civil Aviation and the Directorate General of Civil Aviation (DGCA) asking them to file their reply by July 2.

It, however, fixed the matter for July 8 while declining FIA's request to at least defer the date of implementation of the circular till next date of hearing on the grounds that it may create chaos among passengers putting them in difficulty.

The court said the charge will be restored, if the FIA succeeded.

FIA questioned the power of the DGCA, saying it did not have jurisdiction to issue such a circular and the amount of Rs 100 per kg fixed, should be according to the destination.

The Ministry's counsel opposed the FIA's contention saying the circular is only applicable to domestic airlines.

The counsel said the rates were being regulated keeping in mind the harassment suffered by the passengers at the hands of the airlines.
29/06/16 PTI/Business Standard

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Aviation Ministry asks BCAS to form panel to review baggage tags' need

New Delhi: The government has revived the plan to provide respite to air travellers in India from the hassle of tagging their cabin baggage and then standing in the long queue at security checkpoints to get them stamped.

The plan, which has been discussed by the government since long, may happen soon with the civil aviation ministry asking the Bureau of Civil Aviation Security (BCAS) to form a panel to review the necessity of cabin baggage tags and give its report within four weeks.

The decision to set up the panel was taken in a meeting called by the civil aviation secretary RN Choubey on Thursday. The meeting was part of a regular monthly exercise to discuss ways to improve the operational efficiency of airlines.

"The good thing about the aviation secretary is that he works with timelines. He has given BCAS four weeks to decide on the abolition of cabin baggage tags across India," said a senior executive of an airline, who attended the meeting."This issue is being discussed for long and despite a consensus on its abolition, we have not been able to abolish it."

As part of the standard operating procedure (SOP) followed at all the airports in the country, every passenger boarding a flight has to get a tag for the cabin baggage, which is then stamped at the security check and checked by the security personnel at the boarding gates to ensure that no unchecked baggage enters the aircraft.
29/06/16 Mihir Mishra/Economic Times

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No flying nod for NCC aircraft

Thiruvananthapuram: The flight training of around 300 NCC cadets in the city has remained stalled for more than two years now. Till 2013 the air wing cadets of the 1 Kerala Air Squadron at Pettah, received training in flying basics. That year all the microlight aircraft used for flight training were grounded as per a directive from the Airport Authority of India. The reason was a freak accident involving a microlight aircraft during a training session in North India.
Now, even after the lifting of blanket ban in late 2015, 1 Kerala Air Squadron is awaiting nod of the Airport Authority of India to resume flight training of the cadets. The officers of the NCC unit submitted a request to the Airport Authority in May, but, they are yet to respond.
Senior NCC officers had met chief minister Pinarayi Vijayan and education minister C Raveendranath regarding the issue last week. Presently, the sole microlight aircraft owned by NCC lays idle due to the delay in issue of permission.
29/06/16 Times of India

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CIC seeks monitoring of aviation schools

The Central Information Commission has expressed concern over the security risks involving flying schools and has stressed on the need to monitor them. In two recent orders, the CIC has underlined the need for public disclosures and transparency in such schools.
"Keeping in view the expertise, inherent risks in flying exercises and all unfortunate incidents resulting in loss of life during flying training in the past, the Commission is sensitised towards the operation, management and monitoring of such flying schools. The commission is indeed deeply concerned ... and is of the view that certain public disclosures are essential," Bimal Julka, information commissioner, said in his order.
The observations are related to the Gujarat Flying Club and the Bombay Flying Club, but have also been marked to the Directorate General of Civil Aviation, ministries of civil aviation and social justice and empowerment. They are in response to two separate RTI applications filed by Delhi-based Jai Bhagwan Jatav from Rashtriya Shoshit Parishad. Jatav had sought information on funds received by the Gujarat and Bombay flying clubs, the number of SC/ST candidates who received scholarship and funds received under the central sector scholarship scheme.
29/06/16 Himanshi Dhawan/Times of India

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Is Cambata Aviation going to follow in Kingfisher’s footsteps?

It is 11 in the morning on a sweltering June day at Terminal 3 of Delhi’s Indira Gandhi International Airport, but workers of Cambata Aviation – from loaders to supervisors and technicians to duty officers – are twiddling their thumbs and milling around the canteen near the police station. In dire straits, they might as well be singing Telegraph Road – “I got a right to go to work but there’s no work here to be found”.

Cambata Aviation has not paid its employees in nearly three months. There are fears among the workforce that the company might be going belly up by the end of this month, and also that its top executive will flee the country and never return. The company’s chief operating officer said on June 27 that he couldn’t confirm whether or not the company will fold up on June 30. If there’s one thing that’s clear about the state of Cambata Aviation’s affairs, it is that the company is not flying high.

It’s been a rough ride for the company. Founded in 1954, Cambata Aviation Private Limited went on to become India’s first private ground handling company. Its founder, Kershi Cambata, passed away in May 2008. After the demise of Cambata Aviation’s founding patriarch eight years ago, two of his sons were locked in a legal battle at the Company Law Board. Cambata Aviation’s tale of woes sounds a bit like a mash-up of the infamous nosediving of an airlines with a hint of a much-publicised succession battle. With other members of the owning Cambata family in the US and elsewhere (Albert was found guilty of tax fraud after he moved to Switzerland, renounced his US citizenship and became a St Kitts and Nevis national), the person captaining the ship in India is Irish national Pat Casserly.
Workers allege that in the past few years, ground services of the few flights that are still handled by Cambata Aviation have been given to rivals. “We’ve been here since 6am,” said a worker Newslaundry met at Delhi airport and who did not wish to be named. “They are giving it to BWFS and Celebi,” he alleged, naming competing firms.
29/06/16 Kaushik Chatterji/NewsLaundry

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Dolphin RFID collaborates with Aman Aviation to give Indian Aviation a huge fillip

Mumbai: Dolphin RFID, an end-to-end RFID solutions company and Aman Aviation, India’s first Maintenance and Repair Organization (MRO) dealing in repair and overhaul of aircraft components, have joined hands to augment one of India’s most important sectors – civil aviation.

Together, they will enable Indian civil aviation sector to adopt RFID based international best practices followed by companies such as Boeing and Airbus. In the process, they will enable airline companies to reduce time spent on ground, augment the number of trips, turn profitable and also make air travel in India much more cost-effective whilst maintaining the high levels of safety.

Through the collaboration, Aman aviation will leverage Dolphin’s RFID technology based solutions to help airlines to reduce inspection time and bring down man-hours of maintenance by eliminating/ reducing time consuming paperwork without compromising on the stringent aviation sector safety standards. There are a number of components such as oxygen cylinders, first aid kits, physician’s kits, oxygen masks, fire extinguishers, lavatory items, life vests, seat belts, etc. that needs to be checked prior to every take-off. RFID based solutions can get this done in minutes.

In the area of tracking solutions, introducing RFID can translate in huge savings. For instance, over 10 million pieces of luggage are mishandled per year and each mishandled luggage costs an average US$90 to the airline or the airport authorities. RFID solutions supports efficient tracking of assets and inventory through all stages of the complex supply chain extending from manufacturers, through bonded stores and right up to the end users – followed by accurate Cloud based Maintenance Management for the aircrafts.

Using Dolphin’s RFID technology, Aman can help the ground maintenance staff to track and trace the special tools required for maintenance. The utilisation of maintenance manpower is fully optimised by use of RFID systems.
29/06/16 India Infoline

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Regional connectivity: DGCA to ease norms for smaller aircraft

New Delhi: The Directorate General of Civil Aviation (DGCA) is expected to come out with less rigorous rules and compliance standards for smaller aircraft, in a bid to attract airlines to its regional connectivity scheme.

According to the regional connectivity scheme announced by the Centre in its civil aviation policy, passengers will be charged Rs.2,500 for an hour’s flight from an airport that is currently unconnected. The government will provide 80 per cent of the subsidy to airlines for the losses they incur due to the cap on the fare, while the remaining 20 per cent will come from the States.

“We intend to come out with less strict civil aviation requirements for scheduled commuter operators who will fly 80-seater aircraft. We will come out with separate regulations for 19-seater aircraft too, which will be even less rigorous,” said a senior DGCA official. The official said the existing regulations might be stringent for players willing to operate smaller aircraft for regional connectivity purposes.

While releasing the policy earlier this month, Civil Aviation Secretary RN Choubey had said that the Centre had already received numerous requests from players to fly on regional routes. The government, it is learnt, is of the view that the success of the regional connectivity scheme will depend on making it easier to acquire and operate smaller aircraft. “We don’t expect the big airlines to keep multiple configuration aircraft in its fleet,” said a senior Civil Aviation Ministry official. “For the scheme to become a success, operators with aircraft below 80-seats will have to come,” Sarandindu Biswas, Executive Director (Architecture) at Airports Authority of India (AAI) had said at a recent event. He had said as per DGCA records, there are only fifty-one 80-seater aircraft and four 42-seater planes run by various operators in India. “New players with smaller aircraft need to enter the market and take advantage of the new policy,” Mr. Biswas said.
27/06/16 Somesh Jha/The Hindu

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Airlines continuously eating into railways share of passenger traffic

The Indian government recently announced its decision to cap regional airfares at Rs. 2,500, and this is likely to eat away the passenger traffic of the Indian railways. Once the new rule comes into force, there would be very little price difference between premium rail fares and the fares that airlines charge for the same distance.

This could result in more number of passengers opting to fly instead of rail travel thereby saving time, the Financial Express reported. The central government is yet to announce a detailed regional connectivity scheme and the names of the airports, which would fall under the scheme.
The broad outline of the policy suggests that state government's, which are ready to give less than one percent VAT on Aviation Turbine Fuel (ATF) prices and airport charges, would be able to get airlines to begin operations in their cities.

For example: If the Jaisalmer airport in Rajasthan gets connected to Jaipur, then, a passenger who travels on a 12-hour AC first class journey between the two cities pays Rs. 2,300. With the option of regional connectivity, the passenger would only have to shell out an additional Rs. 200 to for a 75-minute flight instead.
28/06/16 Kalyani Pandey/IBTimes

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Tata just partnered with Bell Helicopter in a bid to bag $2 bn chopper deal

Tata Advanced Systems Limited (TASL) is going to enter a partnership with US-based Bell Helicopter to emerge as a leader in the Indian defence aviation sector and race past its rival Mahindra-Airbus for a $2-billion naval chopper manufacturing contract.

The contract for 100 utility helicopters will be awarded under 'Make in India'.

The Indian companies will take it from the front to procure the helicopters with a foreign company as a partner.

TASL will be the lead company in partnership with Bell Helicopter, based in Fort Worth, Texas.
"The TASL tie-up with Bell Helicopter is likely to be announced formally soon. It will make the competition more or less a direct fight between Mahindra and Tata," people involved in the developments told ET.
28/06/16 Business Insider India

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Aviation ministry roadshows in states on RCS

New Delhi: The government’s ambitious plan of making flying affordable through the Regional Connectivity Scheme (RCS) requires states to participate, too. For which, the civil aviation ministry plans roadshows in state capitals and in cities identified under the scheme.

According to a ministry official, rather than having celebrity faces, this will aim to build awareness, beside a dialogue process with state governments. “We will have hoardings and other forms of out-of-home advertising efforts,” the official said.

The roadshows might start in August, after the government concludes the process of stakeholder consultation on the scheme.

The need for states to coordinate in these matter is seen in the recent example of the new airport near Durgapur. Government-owned Air India started operating from the Bengal Aerotropolis-run airport but has since stopped all flights, complaining the state government has been unable to pay the Viability Gap Funding for over two months. “We owe around Rs 5 crore on account of VGF from the state and despite writing multiple times, we have not got any response,” says a senior AI official.
28/06/16 Arindam Majumder/Business Standard

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Mehair eyes seaplane services from Mumbai to Pipavav port

Mumbai: Maritime Energy Heli Air Services (Mehair), a Juhu based aviation company which is set to introduce Juhu airport – Girgaum Chowpatty shuttle seaplane services, is looking to introduce similar service between Mumbai and Pipavav port.

The company is in talks with APM Terminals, the port operator, for the seaplane connectivity, a Mehair official said.

"There are several companies around the port area which would also like to use the seaplane services," the official said.
At present it takes about 12-14 hours by road to reach Pipavav from Mumbai and air connectivity from Mumbai to nearest airport Diu is intermittent with a flight taking off mid-day and expensive. Also it takes about two hours from Diu to reach the port, and flights to Bhavnagar, from where it takes four hours to reach the port, have been discontinued recently.
28/06/16 Shahkar Abidi/DNA

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Hot food on a airplane? Chef breaks down the logistics

New Delhi: Food on airplanes is typically unappetizing but airline catering company, TajSATS, which has recently been awarded the 'Best Inflight Caterer' for the year 2016, attempts to incorporate inflight innovations through food preparation and presentation .

Seasonal specials, presentation and cost-effective planning are crucial while preparing an inflight meal, says Chef Arun Batra, Executive chef TajSATS who recently hosted a chefs table, organised by Vistara, a TATA-SIA airline service in India here.

TajSATS is a joint venture of the Indian Hotels Company, popularly known as the Taj Hotels Resorts and Palaces and SATS (formerly known as Singapore Airport Terminal Services) and their clientele includes Vistara, Air India, Jet Airways and many more airlines.

"From the moment it is cooked till the moment it is served, there is a science behind the way airline food is prepared and presented to make sure the customer is happy," says Batra.
28/06/16 PTI/Business Standard

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Airworks interested in setting up MRO at Mihan

Nagpur : After Boeing's maintenance repair and overhaul ( MRO ) depot built for Air India, another company is keen to take up land in Mihan . Airworks , a Gurgaon-based company with having an MRO at Hossur in Karnataka , sent a team to Mihan last week. Sources in Maharashtra Airport Development Company ( MADC ) said the Airworks team had shown interest in leasing around 20 acres land.
Further talks will be held before the company takes a final decision, said a source in MADC. Established in 1951, Airworks has a tie-up with Airbus though it can service other aircraft too. Airworks was looking for land to expand its operations and Nagpur is one of the options, the source said.
It appears Mihan-SEZ may emerge as a hub for aircraft maintenance industry though so far the only MRO operational in the complex is that of Air India. Originally supposed to be run by Boeing that supplied the aircraft to the national carrier, it is now operated by Air India itself. MRO is catering to on an average one aircraft per month. The services are at present limited to Air India's own aircraft of Boeing make. There are plans to get licence to service Airbus' planes too. Air India is also planning to set up a landing gear workshop in Mihan.
Other MROs allotted land in the SEZ are Max Aerospace, Dukes Aviation and Indmaar. Max Aerospace has now changed its plans from an MRO to an engine workshop, said a MADC source. There has not been much progress by other companies.
28/06/16 Shishir Arya/Times of India

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MoCA to focus on regional connectivity and unused airports

ASSOCHAM’s National Council on Civil Aviation in support from Ministry of Civil Aviation, Government of India was recently organised in New Delhi. The conference brought the stakeholders of aviation and travel industry to discuss the new aviation policy. The inaugural session included special address by key people in the industry. Talking about further plans, Rajiv Nayan Choubey, secretary, Ministry of Civil Aviation, said, “It has been a great year for the ministry with 22 per cent growth in the sector; but to look forward, we are drafting a scheme for increasing regional connectivity in the country. The unused airports can be converted into Special Economic Zones (SEZ) or leased out to the private sector for further training purposes. Instead of just investments, we need to build an ecosystem in order to continue growing at the same rate.”
India has the potential to become the third largest aviation market by 2020 and the largest by 2030. There is untapped potential for growth due to the fact that regional connectivity to several areas is still to be established. On being asked about capping prices, Ashok Gajapathi Raju Pusapati, Union Minister of Civil Aviation, Government of India, stated, “A cap on airfares will not help reduce the steep rise in ticket prices. A recent analysis showed that only 1.7 per cent of the tickets sold were at high cost. A cap on the airfares will push up lower prices that would eventually increase the ticket cost. Only the last minute high price of ticket is a matter of concern.”
27/06/16 Saloni Bhatia/Financial Express

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India to prepare drone policy for civilian use

In an attempt to facilitate the civilian use of unmanned aerial vehicles (UAVs), the Indian government will shortly start fresh consultations to evolve a UAV policy.
According to the contours of the plan being envisaged, the government may restrict the payload to 25kg and the UAV may have to fly within the ‘visual range’ also referred to as the ‘visual line-of-sight’.
India’s reference point for these discussions is expected to be the rules and provisions on UAV announced by the US Federal Aviation Administration (USFAA) on 21 June. The Directorate General of Civil Aviation (DGCA) has published draft guidelines for obtaining identification number for operations of civil drones and unmanned aircraft system.

“The Indian government like USFAA will restrict use of payload or cargo only up to 55 pounds or 25kg,” said a civil aviation ministry official who didn’t want to be identified.
27/06/16 Sanjay Singh/VCCircle

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Seaplane awaiting airworthiness certificate

Alappuzha: seaplane flown in from USA to the State six months ago for operating services within and outside the State is awaiting a key clearance from the Director General of Civil Aviation (DGCA). The 10-seater amphibian aircraft, brought by a State-based aviation group, is parked in Kochi. It has received Indian registration and is awaiting airworthiness certification from the DGCA.

The certification is part of the mandatory procedures for the operators in the aviation sector and it was expected within a month or so, an official of the aviation group told The Hindu . The commercial operations might begin soon after receiving the certification.

The operator will meet the Ministers concerned in the Left Democratic Front government to discuss matters pertaining to flight operations.

The previous government had issued guidelines for receiving early bird incentives and the operator will be eligible for them, being the first carrier in the category. The government had guaranteed a certain share of seats on regular flights, subject to certain conditions. The setting up of waterdromes and other infrastructure would also have to be ensured before commencement of operations.

The original plan of the government was to enable operation of flights in the Kollam-Alappuzha sector. The Alappuzha waterdrome spot was changed from Punnamada to Vattekayal by an official committee set up by government after objections were raised by fishermen on the original landing spot.

The seaplane operator is planning to operate flights from Kochi to Lakshadweep initially.
27/06/16 R. Ramabhadran Pillai/The Hindu

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Air traffic controllers test the ground

Chennai: On a rather breezy day, a bunch of air traffic controller staff took off from controlling airspace and switched to playing a game of cricket.

As part of the second edition of Air Traffic Controllers Premier League, six teams will battle it out during the next one week for a trophy.

K. Murali, joint general manager (air traffic management) said, “We started this last year, in a way to reduce stress of the staff and to keep them engaged.”
27/06/16 The Hindu

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The skies await

Decisions determine where we end up in life, sometimes for the better, and sometimes for worse. This is especially relevant right after school. While parental and peer pressure can compel you to enrol with a mainstream Engineering or Medical course as dictated by popular and conventional wisdom shackling every bright and beady-eyed generation that our great nation produces without relent, it may be worthwhile to look deep within and ask yourself if you truly have the aptitude to adopt someone else’s dreams or follow your own.

Every time an aeroplane flies by, every person is likely to look up at the skies in awe, and secretly aspire to be an aviator. How do we choose a career in Aviation and what are the prospects? There are various opportunities available for those who are looking to fly high with a career in Aviation that have opened up recently with very few institutions offering such degree courses or license training programmes.

In 2016 alone, the Government has allowed 100 per cent Foreign Direct Investments for Civil Aviation organisations. The Directorate General of Civil Aviation (DGCA), Ministry of Civil Aviation has relaxed the 5/20 rule. The DGCA is also imposing a cap on the airfare for a maximum travel time of one hour. The Ministry of Civil Aviation is also making initiatives to develop the numerous under-developed airports in Tier 1/Tier 2 cities to improve connectivity. The new initiatives will promote aircraft operators and help the common man to travel by air, rather than by rail or road. This would in turn result in requiring more aircrafts, more airports, which leads to a higher demand for engineers, technicians, pilots and management professionals.

The demand for aircraft in India is witnessed by the large orders of Airbus, Boeing, Embraer and ATR aircrafts placed by airlines in India such as Indigo, Air India, Go Air, Vistara, Air Asia, Jet Airways, etc. The current air traffic in the Indian airspace is roughly around 480 aircrafts, this is expected to increase to over 1200 aircrafts by 2020. In the year 2015, four new airlines received their Air Operator Permit and many more to follow suit. Airbus and Boeing has large R&D Divisions and procure many components from India that go into manufacturing their aircraft.
27/06/16 The Hindu

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Aviation Sector: Airlines soar on growth in demand

The DGCA air traffic data for the month of April-May 2016 indicates growth in both the months of more than 20% native passengers. IndiGo’s data shows 23% ASK (Available Seat Kilometres) build Y-Y in Q1FY17 by proper maintenance of PLFs (Passenger Load Factor) and OTP (On Time Performance). On their part, Spicejet and Jet Airways have figured out how to improve their capacities. As the measures to expand capacity is reduced, capacity upgrade will be driven by lessor arrangements that will inspect the cost structures for Spicejet/Jet.
Our domestic supply-demand model indicates a yearly growth rate of just 14% between FY17 and 20E on the basis of current order book but airplane supply based on current order book will lag demand.
IndiGo shows an expansion of 23% ASK in Q1FY17 and 34% in FY17. The ASK increment between March and May 2016 is 8%, which is completely determined by Neos (airline). The ASK increment for IndiGo in domestic routes is 25% whereas it is 6.5% in the international routes. Eventually, the international ASK share for IndiGo has reduced from 11% to 9% between Mar-Apr 2015 and Mar-Apr 2016. On Time Performance (OTP) of IndiGo remains the best among big airlines. PLF expanded to 87.2% in May 2016. The market share of IndiGo is 39% as per the May data, while based on ASK it is comparatively higher in the domestic sector i.e., 41%.
27/06/16 Dipa Biswas/Financial Express

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IATA: Cross-country intelligence sharing to help civil aviation companies tackle cyber threats

The International Air Transport Association (IATA) has called for improved intelligence sharing and preventive measures among foreign government agencies to tackle mounting cyber security risks faced by the aviation sector, reports PTI.

"Every flight that takes off or lands is the result of working together and information sharing among many different entities such as airlines, airports and air navigation service providers (ANSPs). Yet the very nature of this collaboration also enables potential cyber vulnerabilities," a top cyber security expert was quoted as saying at the conference held in Dublin.
Top cyber security experts who attended the conference warned that cyber crimes such as taking over communication of aircraft-to-ground communication, stealing data of credit cards or frequently flyer programmes and document fraud could jeopardise the industry's financial health.
26/06/16 Prabha K S/IBTimes

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Government allows airlines to import up to 18 year old planes

New Delhi: Domestic airlines can now import aircraft that are up to 18 years old into the country with the government amending more than two-decade rules in this regard.

The move is expected to provide a fillip for the government's ambitious efforts to boost regional air connectivity as it gives more leeway for operators in expanding their fleet.
Till now, aircraft that are more than 15 years old were not allowed to be imported.

As part of larger efforts to improve the ease of doing business in the domestic aviation sector, which has huge growth potential, the Directorate General of Civil Aviation (DGCA) has made changes to rules that had come into effect way back in July 1993.

With the revised norms, pressurised aircraft that are not over 18 years old or those which have not completed 50 per cent of design economic pressurisation cycle can be imported.
26/06/16 PTI/Economic Times

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‘Allow private players to train air traffic control officers’: Civil Aviation Ministry

New Delhi: Allowing private players to set up training facilities for air traffic control officers will help in addressing manpower shortage in air traffic management activities, says a report.
Air Navigation Services (ANS) comes under state-owned Airports Authority of India (AAI) and for quite sometime there has been a shortage of air traffic controllers.
A report prepared by industry body Assocham and consultancy KPMG has said the number of Air Traffic Control Officers (ATCOs) grew to 2,600 last year but there is a shortage of around 1,500 such people.
Noting that staff crunch is a cause for concern, the report suggested enhancing capacity at existing ATCO training facilities and also permit private entities to carry out training activities.
The Civil Aviation Ministry may consider the option of allowing private players to set up ATCO training facilities, subject to adequate supervision by the Airports Authority of India (AAI), it said.
“This may be started in a Public Private Partnership (PPP) mode first and thereafter be made fully open to private sector in the long run,” the report said, adding partnership with international ATC training institutes should also be explored.
Currently, there are ATC training facilities at the Civil Aviation Training College, Allahabad and at the Hyderabad airport.
26/06/16 PTI/Indian Express

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Private airline's intra-state services start from Surat

Surat: Surat is all set to be connected with important destinations in the state including Rajkot, Bhavnagar, Kandla and Ahmedabad. Ventura Airconnect Ltd (VAL), an airline operated by Surat-based diamond barons, resumed its intra-state operations from Surat on Saturday.
The Surat-Bhavnagar flight was flagged off by state civil aviation minister Saurabh Patel from Surat airport. VAL has also announced its Surat-Rajkot and Rajkot-Surat flights from June 27.
The airline has received permission from Gujarat government and the DGCA to commence the Ahmedabad-Kandla-Rajkot and Rajkot-Kandla-Ahmedabad operations starting from July 1.
Talking to TOI after the function, Patel said, "The Gujarat government has partnered with Ventura to connect important destinations including tourist, religious and industrial hubs in the state. As per the tender approval, the state government will be giving subsidy up to 200 flying hours to Ventura."
The state government is working on developing airstrips at Palitana, Ambaji, Dwarka, Ankleshwar and Morbi, he said. While the process of acquiring land is already done at most places, problems are being faced at Ambaji due to the hilly terrain, Patel added.
26/06/16 Melvyn Reggie Thomas/Times of India

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For the first time, IAF's Sukhoi-30 flies with BrahMos supersonic missile

The Indian Air Force's Sukhoi-30 MKI on Saturday flew a historic flight. It flew with the integrated BrahMos supersonic cruise missile, which has a range of over 290 kilometers.

The IAF is now the only air force in the world which possesses a supersonic missile system and this will give a boost to India's strike capability. In the next few months, an actual 2,500 kg BrahMos air-to-ground missile will be fired from Sukhoi-30 flight, Press Trust of India reported.
An official statement, as cited by PTI, stated that the IAF is ecstatic about the Su-30's range along with the addition of the BrahMos missile, thereby enhancing the firepower. Enhancing the capability will ensure the IAF reaches well within the enemy territory and blow vital installations from stand-off ranges.

Some countries which posses the Sukhoi-30s have observed the maiden flight trial. The countries are keen to buy lethal weapons systems for the Russian-made fighter jets. "It is a perfect example of Make in India and an engineering marvel in aviation history in India. It proves that when all agencies come together with one mission, there is nothing like impossible," T Suvarna Raju, CMD of Hindustan Aeronautics Limited (HAL), was quoted as saying by the agency.
26/06/16 Kalyani Pandey/IBTimes

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Regional connectivity scheme: Govt plans to levy departures on trunk routes

The government plans to impose a levy of Rs 7,000-8,000 per domestic departure flight on all trunk routes to subsidise airfare on operations to unconnected cities, Minister for Civil Aviation Ashok Gajapathi Raju said. This levy is estimated to generate Rs 500 crore annually to be used to fund the Regional Connectivity Scheme (RCS), under which airlines will offer services at an all inclusive airfare not exceeding Rs 2,500 for a one-hour flight.
“I think as of now it (levy) will come close to Rs 500 crore annually and we have four regions — North, South, East, West — to begin with,” Raju said, adding that the levy could be Rs 7,000-8000 per departure flight. While clearing the National Civil Aviation Policy 2016 earlier this month, the Union Cabinet announced the Regional Connectivity Scheme as the ‘centerpiece’ of its policy, aiming to raise the sale of domestic tickets to 30 crore in five years from 8 crore in 2015.
Besides the levy, the subsidised fare of Rs 2,500 will be funded through exemption to airlines from a host of charges, sharply lower services tax on tickets and reduced value added tax (VAT) on aviation turbine fuel. The government changed its earlier plan to levy a 2 per cent cess on each ticket to fund the RCS. Raju said the ministry thought a levy per departure flight may result in airlines absorbing some of the charge and not passing it on to the customer entirely. The government plans to start the RCS from second quarter of 2016-17.
26/06/16 Sunny Verma/Anil Sasi/Indian Express

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Online charter operators party in the sky

Chennai:  On April Fools’ day last year, an online marketplace for ‘everything with an engine’ Droom, put out an offer. “Want a plane? Buy one online on Droom now!” it shouted. It was a joke, of course, and one that the company’s founders had a good laugh about. But three months and several serious requests later, Droom had no choice but to make the joke a reality.

The anecdote, narrated by Droom co-founder Rishab Malik on how they began renting private planes and helicopters in August 2015, is a sign. No longer are chartered flights — both private jets and helicopters, limited to a minute fraction of the Indian populace. As the number of millionaires and billionaires in the country increases, so does the demand for the exotic.

And what is more exotic than celebrating a birthday on a private jet to Goa?

“Yes, it’s a high glamour category, especially for an online aggregator, but we are seeing an increasing demand for such things,” observed Malik, when asked whether taking something this niche online actually works.

To be fair, Droom has not managed to sell either of the private jets it has for sale. But what it is selling is around three ‘aerial experience’ packages a month. During peak times, the transaction volume goes up to as much as seven.

Droom is not the only such provider. Kanika Tekriwal’s startup JetSetGo had begun offering chartered flights online. “We wanted to ensure people with diverse financial backgrounds have the option to travel by private jet,” said Tekriwal, founder of JetSetGo, during the launch of its JetSteals program. JetSteals has prices ranging from Rs 4,600 to Rs 45,000 and allows passengers to book seats on private jets to regions in India that commercial flights do not take.
26/06/16 Jonathan Ananda/New Indian Express

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After 100% FDI, govt to tweak airline ownership norms

New Delhi: India may have allowed foreign entities to fully own a desi carrier, but it now needs to change some of its ownership rules to allow such airlines to fly in the country and get clarity on international norms for their overseas operations.
Under current rules, the government grants a licence to run an airline (AOP — air operator permit) only if that entity's chairman and two-thirds of its directors are Indians and the "substantial ownership and effective control" (SOEC) is with Indian nationals. Also, International Civil Aviation Organisation (ICAO) says that an airline's SOEC should be with the nationals of a country if such an airline wishes to fly out of that country.
While aviation secretary R N Choubey, the architect of the new aviation policy, on Thursday said the SOEC norms for issuing AOP for airlines in India will be aligned with the new FDI rules, India will need to check the international norms for overseas flying by desi airlines that may be fully or substantially owned by foreigners.
"We will examine the SOEC norms of various countries that permit more than 49% FDI in airlines. We will review the existing policy for grant of AOP to bring it in line with the decision to allow 100% FDI in domestic airlines," Choubey said. The issue of SOEC being with Indians arises while issuing AOP and giving bilateral rights that India has to its airline for flying abroad. "For the purpose of granting AOP, as the FDI limit has been increased, correspondingly the AOP requirement of SOEC will also have to be aligned with it. That will require amendment," he said.
25/06/16 Kashmir Monitor

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16-seater amphibian planes to shuttle passengers between Girgaum and Juhu

With India's first air shuttle (between Girgaum Chowpatty and Juhu airport) services now expected to take off by mid-September, the city-based service operators anticipating high demand has now decided to put a 16 (14 plus 2 pilot) seater amphibian plane for it, instead of a 9 (7 plus two pilot) seater. In fact, the company is even mulling a 19-seater plane later if the demand picks up in future.

"The shuttle services can be started from mid-September onwards which will coincide with the end of monsoon. We hope to get all the flying permissions for the new plane by then from DGCA and other agencies. It's a brand new plane and has much more powerful engine," said Siddharth Verma, director, Maritime Energy Heli Air Services Pvt Ltd. The new Cessna-208 EX model amphibian plane is being leased from a Hong Kong-based company.

Chief minister Devendra Fadnavis had in January this year claimed that sea plane shuttle service will start within few months as it has got all the clearances except for one remaining from the collector. The project was first mooted more than two years ago by state tourism department which wanted sea plane services to connect the water bodies in the state and thereby promote tourism. The 7-minute journey between Girgaum Chowpatty-Juhu airport is expected to be priced at Rs999 as promotional fares.
25/06/16 Shahkar Abidi/DNA

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Aviation FDI hits air pocket

New Delhi: Airlines with a majority foreign ownership may not be able to fly international routes from India even though the liberalised norms now allow foreign investors to own up to a 100 per cent stake in domestic carriers.

At present, India has bilateral air service agreements with 109 countries. Many of these countries have a "substantial ownership and effective control" clause. This clause, which is also a condition from the International Civil Aviation Organisation (ICAO), may not permit airlines with a majority foreign ownership to fly abroad from India.

"All that it means is that if you are having more than 49 per cent, there may be an issue in getting the bilateral rights for flying abroad. But if you wish to fly within the country, then there is no bar," said R.N. Choubey, civil aviation secretary.

"We will examine what other countries who are similarly placed are doing and then will take a call," said Choubey.

Analysts said most countries, including the Gulf and the US, restrict bilateral rights to airlines owned and controlled by nationals of a country that has been granted the bilaterals.

Most countries also restrict the ownership of its airlines to its nationals. The US and Canada allow only 25 per cent foreign ownership; Europe and Australia allow 49 per cent foreign ownership, while ensuring that control remains with Europeans or Australians, respectively.
23/06/16 Telegraph

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Capping would not be the answer to deal airfares rise: Ashok Gajapathi Raju

Civil Aviation Minister Ashok Gajapathi Raju said, to deal with steep rise in airfares, capping would not be the answer as it would also push the floor prices at an The Associated Chambers of Commerce and Industry of India (ASSOCHAM) event.

On capping airfares, "We did analysis which showed that 1.7% of the tickets sold were of high cost. So, the last minute high price of ticket is matter of concern. But we should not land up in a situation that pushes price of over 90% of passengers for benefit of 1.7%, said Mr Ashok Gajapathi Raju Pusapati, Union Minister, Ministry of Civil Aviation.

Mr Rajiv Nayan Choubey, Secretary, Ministry of Civil Aviation said, the civil aviation policy is just the beginning. We wish to stay ahead of the growth curve and if we fall behind the growth curve, for example as it happened in case of urban development in the country, there will be aviation chaos in skies, airports....All that we must do in order to ensure that we stay ahead of the growth curve.

There are couples of areas which require immediate attention like how to reduce the cost of leasing? If the cost leasing remains high either because of capital or any other procedural requirement, the regional connectivity may find difficulty in taking off so we are committed to exploring ways to reduce the cost of leasing, added Mr. Choubey.

Mr. Choubey further said if the crude price remains soft for the next 4-5 years, regional air connectivity would have found very strong roots in India.
24/06/16 Capital Market/Business Standard

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Aircraft engineer course may become degree programme

New Delhi: Aircraft maintenance engineers may soon be able to apply for jobs in other industries. The government is considering to convert the three-year aircraft maintenance engineer (AME) certificate course into a fullfledged degree programme that will help a successful trainee earn a BSc degree at the end of the course.

"We receive a lot of complaints of AMEs remaining jobless in case they are not hired by airlines," said a senior aviation ministry official, requesting anonymity. "Since the AME course is a certificate course, the holders of it cannot even apply for other jobs. We are working to formulate rules to convert it into a BSc degree so that they can become eligible for other jobs too." The official said the civil aviation ministry has held meetings with the human resources development ministry and the University Grants Commission on the issue.
24/06/16 Mihir Mishra/Economic Times

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Frankfinn receives the Award for “Best Air Hostess Training Institute - 2016

Frankfinn receives the Award for “Best Air Hostess Training Institute - 2016” at the 9th International Conference & Awards organized by Ministry of Civil Aviation & Tourism, Govt. of India and ASSOCHAM held on Thursday - 23rd June March 2016. The Award was handed over by Shri Ashok Gajapathi Raju, Hon’ble Union Minister of Civil Aviation, Govt. of India.

Frankfinn Institute of Air Hostess Training, the World’s No. 1 air hostess training institute again made history today. At a glittering function organized by Ministry of Civil Aviation & Tourism, Govt. of India and ASSOCHAM in Hotel Taj Mahal, New Delhi on 23rd June 2016, Frankfinn Institute of Air Hostess Training received the Award for “Best Air Hostess Training Institute – 2016”. This prestigious award was presented by Shri Ashok Gajapathi Raju, Hon’ble Union Minister of Civil Aviation, Govt. of India. Mr. William Daniel, Managing Director, received the prestigious award on behalf of Frankfinn Institute of Air Hostess Training.

Shri Mr. Ashok Gajapathi Raju Pusapati, Hon’ble Union Minister of Civil Aviation, Govt. of India, who was the Chief Guest for the occasion gave away the awards to the winners nominated under various categories. Some of the other winners were Airbus, Pawan Hans, Spice Jet during the summit. Also, gracing the occasion was Guest of Honor Shri Mr. Rajiv Nayan Choubey, IAS, Secretary, Ministry of Civil Aviation, Govt. of India
23/06/16 Hans India

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Reasons why 100% FDI in India's civil aviation could fail to take off

New Delhi: One step forward, two backward seems to be the mantra guiding the government while coming up with liberal FDI norms for the civil aviation sector. Two days after India's airlines were allowed 100 percent foreign investment without any caveats except a government nod after the foreign investment limit crossed 49 percent, fresh riders have emerged. If these apply, then any substantial investment by foreign entities in India's airline sector remains a pipe dream.
In fact, the emphasis of the government for domestic connectivity may mute global players' desire to invest further in India. Besides new riders on foreign investment in airlines, the process to do so may be cumbersome too. Civil Aviation Minister A Gajapathi Raju has hinted at a careful scrutiny of each proposal where foreign investment could be increased to beyond 49 percent, saying the government will take a call on whether such investments are needed and then too, on a case to case basis. Why announce opening of FDI floodgates and then put barrier just ahead of the flow?
Civil Aviation Secretary R N Chaubey said today that the issue of substantial ownership and effective control (SOEC) for airlines operating in India comes up at two stages - first when an airline applies for a flying permit and second when it wants to fly abroad. It is SOEC which could well put a spanner in foreign investors' plans.
23/06/16 Sindhu Bhattacharya/First Post

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No need to restrict FDI in aviation sector: DIPP Secretary

DIPP Secretary Ramesh Abhishek asserts that the cap for foreign airlines to invest in Indian aviation will stay at 49 per cent. In an exclusive interview with Bloomberg TV India, he says the government will continue on its path to further open up the economy to facilitate ease of doing business.

You have allowed up to 100 per cent FDI in aviation. How will this help the aviation sector to grow?

Civil aviation is a fast-growing sector. Perhaps, India has the fastest-growing civil aviation sector in the world. And the potential for increase of the sector in terms of the passengers being carried is enormous.

And we felt that there is no reason not to allow 100 per cent FDI in this sector if it leads to its development. There will be more infusion of capital, which may help in extending more routes and adding to the capacities, whether it is airports or airlines.

I think we have provided a helping hand to get access to more capital to the sector.We need top-class infrastructure if we want to grow the economy to a double-digit level. So there is no need to restrict FDI in the aviation sector.

There is a little bit of a restriction here. Foreign airlines can invest only up to 49 per cent in scheduled carriers in India. Tell us the rationale behind retaining that clause?

The 49 per cent cap was already there. But the important thing is it was always 100 per cent for NRIs. And now this has been made 100 per cent for all investors, all foreign investors other than foreign airlines. And this will open up huge possibilities of investment in the sector.
23/06/16 Mehak Kasbekar/Business Line

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Don’t want foreign airlines to have majority stake in Indian carriers: Govt

The government’s intention in raising the FDI limit in scheduled domestic airlines to 100% via the approval route was not to let foreign airlines acquire Indian carriers, a senior official said on Wednesday. But the government may not issue a clarification in this regard despite many analysts finding an ambiguity in the latest policy announcement.
“The intention is to attract foreign funds for the sector. For the time being, we don’t want foreign airlines to have majority stake in domestic carriers. We have taken a calibrated approach to liberalise the sector.” civil aviation secretary Rajeev Nayan Choubey said. He added that if the government’s future experience suggests that foreign airlines be allowed to own domestic carriers, the current cap on their equity (49%) might be done away with.
After the recent changes in FDI policy — which allowed 100% FDI in the sector and retained the cap for FDI by foreign airlines at 49%, analysts felt that an opportunity was created for foreign carriers to acquire their Indian counterparts.
For instance, if Qatar Airways acquires a maximum possible stake of 49% in Spicejet and wants to partner with another foreign entity for the balance 51% stake, the government will conduct due diligence to ensure the latter is at arm’s length from Qatar Airways before being allowed to pick up a majority stake. Also, if a foreign investor wants to wholly own a domestic scheduled airline, its associations with foreign airline companies will be ascertained.
“The government, through an inter-ministerial committee, will examine the proposal of any foreign investor wanting to acquire more than 49% stake in a domestic carrier. Several factors would determine the government’s approval, including whether the entity indeed has an arm’s length distance from the foreign airline,” Choubey said.
23/06/16 Bilal Abdi/Financial Express

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Aviation ministry proposes simple entry-exit rules for airlines operating on regional routes

In a bid to boost regional connectivity, the civil aviation ministry may ease entry and exit rules for domestic air carriers.
Under an easy exit option, any airline that starts operating on regional routes will be allowed to close its operations if it feels that the carrier is running into losses after a certain time period. However, the duration of operating the route would be decided at the time of awarding the route, the Economic Times reported.
The rules regarding the policy on regional connectivity are likely to be made public over the next 10 days.
"We do not want a situation where tough exit rules discourage the airlines or companies from launching airlines to provide regional connectivity. We will provide an easy entry and exit option to operators," RN Choubey, aviation secretary, was quoted as saying by the publication.
Any airline, which wishes to start flying on regional routes, will be allowed to operate with a single aircraft, but will have to expand its fleet to three aircraft within a year's time.
22/06/16 Kalyani Pandey/IBTimes

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Breaking the shackles of India's aviation sector

For the longest time, the Indian aviation sector was considered a rich man’s industry. While the industry continues to be highly taxed, the efforts of the government through the new National Civil Aviation Policy to make flying more affordable are laudable. Besides, tweaking the 5/20 rule to a 0/20 rule, which now does not restrict Indian airlines to wait for five years before flying overseas, would bring in much-needed competition into the space.

More so, by allowing up to 100 percent FDI in the aviation sector, which has caveats attached, the government has given Indian airlines a chance to improve their balance sheets. Of course, by capping the amount of FDI being invested by foreign airlines to 49 percent, it is to be seen what other kind of foreign investors would be interested in risking their monies in an industry which has been accumulating losses in excess of $1 billion, consistently, for the last decade. A concern that Peeyush Naidu, partner at Deloitte India, also shares: “While the increase in FDI for aviation is welcome, as it will allow flexibility, we are unlikely to see investors suddenly rushing to invest in airlines just because the cap of 49 percent has been removed.” He goes on to add, “It remains to be seen whether other investors such as private equity players and the like would have the risk appetite to make such investments.”

That said, on paper, all these recent developments in the aviation industry augur well for the airlines and passengers. Air Pegasus MD Shyson Thomas believes that the new FDI norms along with recent policy changes “would act as a catalyst for funds to pour into the Indian aviation sector that is on cusp of take off”.
22/06/16 Anshul Dhamija/Forbes India

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Upping FDI limit to bring in more investment: Aviation Minister

The decision to allow 100 percent foreign direct investment (FDI) in the aviation sector is going to help bring in more investment into the sector, said Ashok Gajapathi Raju, Union Minister for Civil Aviation. "The more the sector is opened up, the more investments we are going to see," he told CNBC-TV18's Shereen Bhan in an exclusive interview. He also talked about India's flag carrier, Air India, saying that the government cannot commit taxpayer money for "eternity" to keep it afloat, but added that the carrier has a definite turnaround plan in place.  "FY16 was the first year that Air India posted an operating profit," he pointed out. The government recently tweaked the controversial 5/20 rule (which required airlines to have five years of operation history and minimum 20 aircraft to be able to fly abroad), removing the five year clause while sticking with the 20 aircraft rule. The rationale: "India is a big country and regional connectivity is the priority of the government. We would like the indian players to serve indian skies first," Raju said.
Explaining about why the ministry has announced fare caps on short distance flights on regional routes, the minister said that there were many unserved airports today which would get increased connectivity.
22/06/16 CNBC-TV18/moneycontrol

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Unbelievable fares, but few air tickets: industry body complains to Ministry, DGCA

Mumbai: With the peak travel season well over, domestic airlines in India have begun luring fliers with so-called deep discounts.

Though the promotional offers have helped the airlines increase the buzz, industry insiders claim that the fliers who actually managed to win a deep-discounted ticket are barely a handful.

On Wednesday, hours after SpiceJet announced its 'monsoon sale' offer for Rs 444 per ticket, rival IndiGo came out with similar offer with fares staring Rs 789. A couple of days back, full-service carrier Jet Airways had announced up to 20% discount in economy flights.
The fare war was renewed when IndiGo, AirAsia and SpiceJet announced discounted fares targeted to create impulsive demand when vacation season ends and school and colleges reopen.
After the second fortnight of May, while SpiceJet offered one-way fares starting Rs 511, IndiGo offered tickets for Rs 800. AirAsia India, announcing its two-year celebrations, halved the fares on several routes. Not to be left behind, Air India came up with 'super offer' of Rs 1,499 fare on its domestic routes.
Concerned that passengers are not getting the promised discounted fares on the offer, Air Passengers Association of India (APAI), a passenger body on Wednesday made a complaint with the Ministry of Civil aviation (MoCA) and aviation regulator DGCA complaining about the advertising 'gimmick' related to SpiceJet monsoon offer, where fares starting from Rs 444 are available for those booking between June 22 and 26. "We received several complaints from fliers who said they could not get tickets at the offer rate as early as 10:20 am on Wednesday. Not only SpiceJet but all the airlines are indulging in similar activities from time to time. I am still not able to understand what purpose does it serve for the airlines to come up with screaming full page advertisement in national dailies but not offering the same to the fliers" said Sudhakara Reddy, president of APAI.
23/06/16 Shahkar Abidi/DNA

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Air operator permit policy to be amended for new FDI norms

New Delhi: The government today said it will amend the existing policy for grant of air operator permit (AOP) to bring it in line with its recent decision to allow 100 per cent foreign direct investment in domestic airlines.
It would also be "examining" the substantial ownership and effective control (SOEC) norms of the various countries which permit more than 49 per cent foreign direct investment (FDI) in their airlines, Civil Aviation Secretary R N Choubey told reporters on the sidelines of an aviation event here.
Under the current norms, AOP or flying licence is granted to a company only if its chairman and two-third Directors are Indian citizens and its substantial ownership and effective control is vested in Indian nationals.
"The policy relating to AOP being given, that policy will be completely aligned with the FDI Policy. So if there is something when higher FDI investment is not resulting in AOP being given, then the AOP requirement will be to that extent will be amended," Choubey said.
Foreign investors, barring overseas airlines, are now allowed to have up to 100 per cent stake in local carriers under the recently liberalised FDI norms.
Under the new set-up, 49 per cent FDI will be through the automatic route and for anything beyond, government nod will be required. At present, up to 49 per cent FDI is permitted in scheduled airlines.
23/06/16 PTI/Business Today

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Airlines Are Not 'Demons', Says Aviation Minister Ashok Gajapathi Raju

New Delhi: Airlines might not be "angels but definitely they are not demons", Civil Aviation Minister Ashok Gajapathi Raju today said amid concerns over arbitrary hike in airfares and emphasised that carriers have been responsive during crises.

Making it clear that there would not be a "simplistic solution" to deal with exorbitant rise in airfares, he reiterated that capping would not be the answer as that would also push the floor prices.

To stress his stance against capping, the minister cited an analysis done last year which showed that only around 1.7 per cent of the tickets sold were in the higher fare bucket.

"Caps and floors are very interesting... but we should not land up in a situation that pushes up the price of over 90 per cent of passengers to benefit around 1.7 per cent of the passengers," Mr Raju said in response to a query on whether the government would look at capping airfares.

Stressing that the overall objective is to ensure reasonable pricing of air tickets, the minister said airlines have been responsible in keeping fares reasonable during Chennai and Srinagar floods.
23/06/16 PTI/NDTV

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DGCA to get more punitive powers

For better enforcement of air safety standards, the Directorate General of Civil Aviation (DGCA) will soon be empowered to penalise airlines and airports for various offences and non-compliance of air regulations.

Under the present rules, the DGCA is authorised to either suspend the operations of airlines or airports or take away their licence, but has no powers to impose fines or penalties.

“Generally, we are not able to take any action because we don’t want to take extreme steps such as suspending the operations as it also affects customers. Currently, we have to file a case in the court to take any action against the operators even for small violations,” said a senior DGCA official, on condition of anonymity.

The Civil Aviation Ministry will soon send a proposal to amend the Aircraft Act, 1937, to the Law Ministry, to empower the DGCA to impose fines for violations under the Act.

The violations include operating aircraft without the specified minimum crew, flying without a valid pilot licence or medical fitness, not maintaining records, fraudulent entry in logbooks and not maintaining airports.

“Many of the violations can be easily controlled. The DGCA can levy a fine immediately which the operator will have to pay,” a Civil Aviation Ministry official said.
23/06/16 Somesh Jha/The Hindu

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Rules on flying of drones likely by July

New Delhi: The prohibition on Indians flying drones is likely to be lifted soon as the rules for flying unmanned aerial vehicles (UAVs) are slated to be finalised by next month with aviation regulator DGCA giving final touches to them.
The consultation process with stakeholders has been completed and the guidelines are being given final touches, Directorate General of Civil Aviation (DGCA) chief M Sathiyavathy said.
“We had discussions with all the stakeholders. It (the guidelines) is almost finalised. We are giving final touches,” she said.
A government order of October last year prohibits the launch of UAVs by any non-government agency, organisation or an individual.
The DGCA had come out with draft guidelines in April this year and the stakeholders, including security and defence agencies, were given time till May 21 to submit their comments on them.
When asked by when the final guidelines would be in place, the DGCA chief said “most likely by early next month.”
In view of the rapid technological advancements in unmanned flying devices over the years and their increased use in everyday life, it has become necessary to develop guidance material to regulate this activity, officials had said.
22/06/16 PTI/Financial Express

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Cap on air fares may not make much impact in TN

Chennai:  The cap of ₹2,500 per hour on airfare for flights promoting regional connectivity, announced recently in the Civil Aviation policy, may not entice travellers in Tamil Nadu to switch over from travelling either by rail or road to air.

This is because of the good road and rail networks in the State. Apart from the nearly 23,000 buses belonging to State transport undertakings, there is a large number of private bus operators connecting different parts of the State.

“It is cheaper to travel by road in Tamil Nadu even as both government and private buses ply to every nook and corner of the State. There is an effective train service across the State. These advantages make it difficult for somebody to change over to air unless there is a significant reduction in air fare,” says B Govindarajan, Chief Operating Officer, Tirwin Management Services (P) Ltd, a Chennai-based aviation consultancy company.
At present, intra-State air traffic is heavily dependant on Chennai, which keeps feeding international airports Madurai, Coimbaore and Tiruchi. However, no airline has service between other major cities such as Madurai to Salem or Coimbatore to Tiruchi because of the short distance, he said.

The State has small airports in Salem, Tuticorin and Vellore and a private use category aerodrome at Hosur.

On a daily basis, there are 15 government buses from Chennai to Tiruchi and Coimbatore, and an equal number of private buses that ply mostly during night.

Travelling short distances by air can be time consuming, says B Desikan, an advocate. Travel by road from Chennai to Tiruchi takes around five hours. “However, if I want to take the flight, I will spend one hour to reach the airport, another two hours at the airport and 45 minutes flying time,” he said.
22/06/16 TE Raja Simhan/Business Line

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India’s first female fighter pilots pave the way for more women in combat

New Delhi: The Indian Air Force (IAF) has recruited its first female fighter pilots, paving the way for more women to be given combat roles as one of the world’s biggest military forces takes steps towards greater gender parity.

Flying Officers Mohana Singh, Bhawana Kanth and Avani Chaturvedi received their wings on Saturday when they were commissioned into the IAF at a graduation ceremony in the southern city of Hyderabad.

“It is a golden day as for the first time these women are going to join the fighter pilots,” Indian Defense Minister Manohar Parrikar said at the ceremony.

“This will inspire more women to take up the most challenging task in the armed forces. Our long-term objective is to work towards gender parity in the armed forces.”

Prime Minister Narendra Modi also congratulated the women, saying it was “a matter of immense pride and joy” to have the first female fighter pilots. “More power to them,” he tweeted. Only a handful of countries such as Britain, the United States, Israel and neighboring Pakistan, have allowed women into the cockpits of fighter jets.

India had until now kept women out of that role, and away from frontline warships and ground combat, citing concerns over their vulnerability if captured and their physical and mental ability to handle the stress of such deployments.
22/06/16 Reuters/Al Arabia

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India’s New Basic Trainer Is Flying

The Hindustan Turbo Trainer HTT-40 for the Indian Air Force (IAF) made its formal inaugural flight in front of defense minister Manohar Parrikar on June 16. The 15-minute flight included a low speed pass, a series of turns, a high-speed pass and short landing using reverse thrust.

Designed and developed by India's Hindustan Aeronautics Limited (HAL), the tandem-cockpit HTT-40 has a gross weight of 2,800 kg (6,200 pounds) and is powered by a Honeywell TPE-331-12B turboprop engine. It was rolled out last February and is the first HAL design to be produced from a digital mockup. Parrikar said that the indigenous content of the HTT-40 is close to 80 percent, and that almost 50 percent of the components are sourced from private Indian companies.

The IAF originally planned to procure 181 of these trainers, but the grounding of the predecessor HAL-designed HPT-32s in 2009 resulted in an off-the-shelf purchase of 75 Pilatus PC-7 Mk IIs to replace those aircraft. While the 75th PC-7 was handed over in 2015, the HTT-40 has been delayed and is not expected to be certified until 2018. At one time, the IAF was considering an all-PC-7 fleet.
22/06/16 Neelam Mathews/AINonline

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​Indian deal for 36 Rafales moves forward

New Delhi is in the final stages of a process that could lead to a contract for 36 Dassault Rafale fighter aircraft.

Negotiations between Indian and French teams regarding the final terms of the contract are now concluded, said defence minister Manohar Parrikar during a recent visit to Bengaluru.

“I should receive their report this week and the ministry will analyse it and then send it to the Government,” he said. “After the report is submitted, it may take the government four to five weeks to officially come to a conclusion as to the final terms of the contract.”

Parrikar made the remarks during a recent visit to Bangalore. He indicated that the contract would be valued at approximately $7-8 billion.

New Delhi will also look to acquire a single-engined and a twin-engined fighter type under the Government’s ‘Make-in-India’ initiative for manufacture in India.
23/06/16 Flightglobal

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Air passengers can now obtain export certificate online

Mangaluru: For the benefit of international air passengers, the procedure for obtaining export certificates for high value items has been further simplified by making the form available online.

In a press release, Dr M Subramanyam, commissioner of customs, Mangaluru has stated that the format of export certificate has been made available on the commissionerate website www.mangalorecustoms.gov.in under a separate link 'export certificate'.

"Passengers can download the format, fill in all the particulars or enter the particulars directly online and take printed copies of the same. The passengers should carry the same printed copy of export certificate in duplicate with them to the airport and present the same to the officer manning the designated counter for this purpose at the departure level of the airport," stated the press release. This will also reduce the time taken in issue of such certificates.
23/06/16 daijiworld

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Foreign airlines can control Indian carriers via group firms

New Delhi: While foreign airlines can’t directly own more than 49 per cent in Indian airlines, despite Monday’s liberalised Foreign Direct Investment (FDI) policy, their group companies or investors can fully own airlines in India with government approval.

So while the likes of AirAsia and Singapore Airlines will continue to have a cap of 49 per cent on their stakes in Indian arms, AirAsia India and Vistara, foreign funds and non-airline companies will be allowed to fully own a domestic, Indian airline.

The government is looking to dilute the rule which makes it mandatory for an Indian carrier to be controlled and owned by an Indian or an Indian entity. This will increase competition for Indian airlines, as deep-pocketed airlines from the Gulf will be able to set up shops in India through their group companies.

This will allow the likes of Etihad, Singapore Airlines and AirAsia to gain management control of Jet Airways, Vistara and AirAsia India through their group companies. Qatar Airways had earlier tried to use the Qatar Investment Authority, a sovereign wealth fund, to buy into Indian budget carrier IndiGo.
22/06/16 Arindam Majumder & Aneesh Phadnis/Business Standard

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Foreign airlines can never fully own local carrier: RN Choubey

New Delhi: Relaxed FDI norms will ensure increased competition in the "huge" domestic aviation sector but foreign airlines will never be allowed to fully own a domestic carrier, a top government official said today.

In a significant reform measure aimed at bolstering the country's high growth potential civil aviation sector, the government has allowed foreign entities, except overseas carriers, to own up to 100 per cent stake in local airlines.

Besides, 100 per cent Foreign Direct Investment (FDI) has been permitted through the automatic route in brownfield airports.

"There will be more and more competition (in aviation sector). That is the signal that is going out," Civil Aviation Secretary R N Choubey told PTI about the relaxed FDI norms and their long-term impact.
22/06/16 PTI/Economic Times

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‘Scheduled commuter airlines may face glitches’

Mumbai: A new category of airlines called scheduled commuter airlines proposed in India’s first civil aviation policy might find it hard to fly given the fine prints, according to ICRA.

“Nuances of the policy (primarily about route dispersal guidelines, RDG2) will have to be understood before private players start investing,” said a note from ICRA talking about the challenges that remain for these new category of airlines.

According to it, adherence to safety guidelines by comparatively smaller airlines would be another big challenge for the industry.

The Civil Aviation Ministry has proposed the new category of airlines which are essentially lower capacity carriers connecting remote locations. The airlines are expected to be low-cost carriers given that they would benefit from relaxed guidelines, fiscal support and probable subsidy support.
21/06/16 Business Line

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Airlines providing regional connectivity to have simple rules for entry and exit: Aviation ministry

New Delhi: The civil aviation ministry has decided to come up with easy entry and easy exit rules for airlines providing regional connectivity, as it wants to ensure maximum industry participation in a programme that seeks to take flying to the masses.

"We do not want a situation where tough exit rules discourage airlines or companies from launching airlines to provide regional connectivity. We will provide an easy entry and easy exit option to operators," aviation secretary RN Choubey told ET.
In the easy exit option, any airline that starts operations on regional routes will be allowed to shut shop and leave if it feels that the operations will not be profitable after a stipulated period of time. The duration will be decided at the time when the route is awarded to a particular airline.
These rules are likely to be part of the policy on regional connectivity that will be released within 10 days. Consultancy firm Deloitte is preparing the report for the government. Currently, no such exit rules exist for any other category of airlines.
22/06/16 Mihir Mishra/Economic Times

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Curb unfair air fare hikes: House panel

New Delhi: A parliamentary standing committee on consumer affairs has asked the civil aviation ministry to put checks on "abnormal increases" in air fares.
The panel took up the issue on Monday following reports of high increase in air fare during the jat protest in Haryana. The panel headed by TDP parliamentarian J C Diwakar Reddy also expressed dissatisfaction regarding the present practice of allowing airlines to increase fare upto 10 times of the minimum.
The committee has asked the civil aviation ministry to take the views of consumer affairs ministry while making any policy decision. Sources said that some of the MPs, who are members of the panel, also shared their ordeal and experiences with airlines. The members were unhappy that the airlines have been taking fliers for a ride to make profits and there is a need to regulate them.
22/06/16 Dipak K Dash/Times of India

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Majority foreign stake puts curbs on overseas flights

Airlines with a majority foreign ownership will not be allowed to fly on international routes, senior Civil Aviation Ministry officials said on Tuesday. On Monday the government liberalised norms in the sector, allowing foreign investors to own up to 100 per cent stake in domestic carriers.

The bilateral air traffic agreements that India has signed with most of the countries have ‘substantial ownership and effective control’ (SOEC) clause which may not permit the airlines with majority foreign ownership to fly abroad from India, a senior Ministry official said.

At present, India has bilateral air service agreements with 109 countries. “The SOEC clause is applicable at two places – at the stage of air operators’ permit and for bilateral rights to fly abroad,” said another senior official.

The ICAO template on air services agreements says the SOEC norms in bilateral agreements address “potential concerns such as safety, security or other economic aspects including potential emergence of “flag of convenience.” However, the template is not binding and the countries are free to set their own terms. India will have to amend the SOEC clause in its agreement with a particular country for allowing an airline with majority foreign control to fly abroad, an official said. “At present, only a couple of countries that India has bilateral agreements with do not acknowledge the SOEC norms,” the official added.
22/06/16 Somesh Jha/The Hindu

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What Does 100% FDI in Aviation Mean?

 India has decided to allow overseas entities--excluding airlines--to own 100% in domestic airlines as it seeks greater foreign direct investment (FDI) inflows into the country. This is against the current 49% FDI limit under the automatic route in domestic airlines (scheduled air transport service/domestic scheduled passenger airline and regional air transport service).

It has now been decided to raise this limit to 100%, with FDI up to 49% permitted under the automatic route and FDI beyond 49% through government approval. For non-resident Indians (NRIs), 100% FDI will continue to be allowed under the automatic route.

Here's how the new rules will play out for different entities and investment scenarios.

Foreign airlines

While the foreign airlines are keen to have a 100% stake in Indian airlines, they have been excluded.

Investment by foreign airlines in domestic airlines will be limited to 49% of paid-up capital, the government said on Monday.

The Indian market is wooing foreign airlines.

India's domestic traffic soared 21.8% in April, marking the 20th month of double-digit growth and the 13th consecutive month in which it led traffic in domestic markets worldwide.

According to the International Air Transport Association (IATA), which represents some 260 airlines that make up 83% of global air traffic, growth in India is being propelled by a comparatively strong economic backdrop as well as by a substantial increase in service frequencies.
21/06/16 PR Sanjay/Mcclatchy/AviationPros

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India Denies Foreign Carriers Full Control of Local Airlines

India retained restrictions that prevent overseas airlines from raising stakes in local carriers even as it unveiled new rules to attract foreign investors into the world’s fastest growing major aviation market.

The government will allow foreign entities such as funds and portfolio investors to fully own local airlines, removing an earlier cap of 49 percent, it said in a statement on Monday. Prime Minister Narendra Modi’s administration, however, decided to bar foreign carriers from raising their stakes beyond 49 percent. Last week, India eased rules for local carriers keen to fly to overseas destinations.

The latest changes in foreign direct investment rules are unlikely to lure overseas investors until the government cuts red tape, according to Mark D. Martin, founder of Dubai-based Martin Consulting LLC. Setting up an airline in India involves multiple ministries and permits for aircraft registration, recruitment and parking slots. The revamp doesn’t allow Singapore Airlines Ltd. or AirAsia Bhd. to boost stake in their local ventures to gain full control.

“We’re not going to see anything earth-shattering anytime soon,” Martin said. “Red tape is still the biggest obstacle to aviation in the country and even if you own 100 percent, getting an airline off the ground is still the biggest challenge.”

Singapore Airlines has a local venture known as Vistara with the Tata Group, and AirAsia Bhd., the region’s biggest discount carrier, began domestic Indian flights in June 2014.
21/06/16 AJoT

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The Modi Government’s New FDI Policy Will Hurt Indian Interests

The latest changes in foreign direct investment (FDI) norms in India have made entry and control of foreign investors in a lot of sectors easier. Defence and civil aviation have been opened to 100% FDI under the government approval route (the FDI limit was 49% in airlines before). Many other sectors have been allowed 100% (or near 100%) FDI with government approval or through the automatic approval route. These include animal husbandry, trading of food products produced in India (including through e-commerce), private security services and broadcasting carriage services (such as DTH, cable networks and mobile TV). Up to 74% FDI (against the previous 49%) in brownfield pharmaceutical industry projects will no longer require government approval. Brownfield airports too have been brought under the automatic approval route.

The condition of access to state-of-the-art technology in India has been removed in defence. In addition, for single-brand retail trading companies undertaking business with state-of-the-art technology, the restriction of sourcing up to a certain percentage of inputs locally has been totally relaxed for three years, followed by a partial relaxation for another five years – a favour granted apparently on Apple’s appeal.

The stated objective of 100% FDI and other relaxations is to promote employment and improve infrastructure, along with greater FDI inflows and the ease of doing business in India. An official statement said that with most sectors coming under the automatic approval route, India is now the most open economy in the world for FDI.
21/06/16 Rahul Pandey/The Wire

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