The school where fake pilots trained

Jaipur/New Delhi: With two more pilots being arrested in Jaipur for submitting fake documents to get their flying licences, the government is slowly waking up to a thriving racket in Rajasthan that churns out fake pilots.
The Rajasthan Flying School, operating from two tiny rooms inside the Jaipur airport since the last thirty years, has been quietly fudging records to enable students to procure pilot licences.
It was finally forced to shut shop in 2008 because the aircraft that it owned was grounded.
The Rajasthan Anti-Corruption Bureau, though, only recently stumbled upon this startling fact after the arrest of the two pilots, Amit Mundra and Ajay Chaudhary, who are on paper, trainees of the 2005 batch of the Rajasthan Flying Club.
After the initial probe, it was found that the Chief Flying Instructor of the school took money from students to fudge records of their flying hours.
This ensured that the flying school saved money on fuel, earned bribes and the students got their licenses faster.
"Officials of the school took bribes from students. Each of us paid Rs. 3.5 lakh", said Chaudhary, who worked with Spice Jet and had faked flying hours to operate commercial flights.
So, while trainees are required to have a minimum experience of 250 flying hours to avail a licence, at least 13 pilots trained here flew only 40-50 hours.
Investigators also found that these students, in records, were flying even on days when the school's aircraft was grounded for maintenance work.
24/03/11 NDTV.com

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IAAI sends notice to airlines to pay five per cent agency commission on gross

Mumbai: Following the recent order passed by the Directorate General of Civil Aviation (DGCA) to re-instate agency commissions, IATA Agents Associations of India (IAAI) issued a written notice on March 27, 2010 to all 16 international carriers following zero commission asking for five per cent commission on gross. The Association however, has specified that the five per cent commission is only an interim arrangement. The percentage can change depending on the industry requirements and travel fraternity retains the right to negotiate for a higher percentage of commission as well.
Biji Eapen, President, IAAI said, “Since DGCA has passed the order, it is mandatory for all the 16 international carriers to start paying agency commission at the earliest. We are expecting response from the airlines within a week. If they fail to respond we will decide on further course of action.” Tarun Yadav, Chairman – Northern Region, IAAI added, “We have zeroed in for five per cent agency commission including taxes and YQ and have excluded government and airport taxes. However, five per cent is only a temporary figure which may increase depending on the need and negotiations among the travel fraternity.”
As reported by TravelBiz Monitor in its previous issue, the expectations of reinstated agency commission structure varies from association to association. When contacted Rajji Rai, President TAAI stated that the Association is pushing for nine per cent agency commission.
31/03/10 Anita Jain/Travel Biz Monitor

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Anand Mahindra turns focus to aviation

India's entrepreneur of the year, Anand Mahindra, has a fresh field to conquer: making passenger aircraft, aided by some Australian expertise.
It’s a market of considerable size. In the Asia-Pacific region alone, Boeing estimates that airlines will spend $1.2 trillion over the next 20 years on as many as 9000 new planes.
Mr Mahindra, vice-chairman and managing director of the $7 billion conglomerate that bears his family’s name, aspires to turn the group’s aerospace arm into an Indian version of Embraer, the Brazilian plane maker which builds a range of aircraft up to the size of a regional jet.
But the Mahindra brand is better known for its tractors and utility vehicles, and building a regional jet is a complex and time consuming business that usually starts with the production of much smaller turbo prop aircraft.
It took Embraer – formed in 1969 by the Brazilian government and privatised in 1994 -- more than 20 years before it built its first passenger jets in the early 1990s.
To speed up the process, three months ago Mahindra agreed to pay about $40 million for a controlling stake in two small Australian aviation companies, Gippsland Aeronautics and Melbourne-based component maker Aerostaff Australia.
Gippsland Aeronautics, based in Victoria’s Latrobe Valley and maker of the popular 8-seat GA8 Skyvan utility plane, plans to beef up its range next year with an updated 18-seat version of the controversial Australian-made Nomad twin turbo-prop. It bought the rights to the Nomad’s type certification in 2008.
The Nomad, designed in the late 1960s and built in Melbourne by the old Government Aircraft Factories between 1971 and 1984, saw service with the Royal Flying Doctor Service and a variety of other civilian and military operators in Australia and overseas. About 170 examples of the Nomad were built, in variants from 12 to 18 passengers. But its reputation suffered from a run of fatal crashes, and the Australian Army retired its Nomad fleet in 1995.
30/03/10 Geoff Hiscock/The Australian, Australia

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No change in 5-year norm for overseas flights

New Delhi: Lobbying and years of debate have been unable to change the civil aviation ministry’s stand on eligibility for Indian carriers to fly abroad.
The ministry has decided to continue with the existing provision — which requires a domestic airline to have a minimum 20-aircraft fleet and five years of domestic operations before it becomes eligible to fly overseas — and decided against referring this matter again to the Cabinet.
So, low-cost carrier (LCC) SpiceJet — which completes five years of domestic flying this June — is set to fly abroad this year. But IndiGo, the most successful LCC today, will have to wait till August 2011 before being allowed the same privilege.
Three of the largest Indian carriers — Air India, Jet Airways and Kingfisher Airlines — are already operating on international routes, but in many instances, have been unable to exhaust the seats granted under bilaterals.
Meanwhile, official sources confirmed to DNA Money that though SpiceJet has been given an in-principle approval to fly to nearby destinations such as Hong Kong, Singapore, Nepal, Bangladesh and Sri Lanka from June, the final approval is still pending.
30/03/10 Sindhu Bhattacharya/Daily News & Analysis

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Waiting for takeoff

New Delhi: In the last two years, Airbus has not bagged a single order from India, and it is unlikely to do so this year. It delivered over 40 aircraft in 2008, 29 in 2009 and expects to hand over not more than 19 in 2010. The reason is that the aviation sector has taken a severe beating. The economic slowdown, the price wars and high fuel prices caused huge losses in the books of all carriers. It is only in the last one or two quarters that things have started to improve. Traffic has picked up, prices have stabilised and losses have begun to come down. But it is still a far cry from the halcyon days when Indian carriers were placing orders that ran into billions of dollars left, right and centre.
Airbus Executive President (marketing & contract) and President (India) Kiran Rao remains bullish on India. “The forecast of 1,000 new aircraft (worth $105 billion) for India in the next 20 years is still pessimistic,” says he. To put it in perspective, there are 440 aircraft in the Indian skies at the moment; 223 of these, or almost 51 per cent, are from Airbus. Rao expects carriers to place orders one more time in 2011. “The market,” he says “bottomed out in terms of complexities and difficulties in 2009. Carriers no longer talk about deferment of orders.”
According to Rao, no Indian carrier has so far cancelled its order, though 2009 saw record cancellations for Airbus worldwide. (He claims Airbus is sitting on 68 per cent of all future orders). But some orders have been postponed, and some orders have been restructured — carriers have switched to smaller aircraft. Kingfisher, for instance, has gone for A330s instead of long haul A340s. This has helped it cut its losses. Industry experts say the losses on long routes can be as high as $1 million a day. The number of such switches or deferred orders is not known. On a global scale, Airbus officials say that in 2009, the company shifted as many as 600 aircraft to earlier or later slots.
30/03/10 Bhupesh Bhandari/Business Standard

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Flying to Singapore cheaper than making trip to Delhi

Bangalore: Airfares plunging on the southeast Asian, west Asian and south Asian sectors have made flying to these foreign destinations cheaper than air travel within the country.
Budget carriers Air Asia, Tiger Airways, Air Arabia, Air India Express (AIE) and others are offering fares as low as Rs3,000 per passenger from south Indian destinations like Kochi, Trivandrum, Chennai and Tiruchirappali to Kuala Lumpur, Singapore and Penang.
For instance, Malaysian no-frill carrier Air Asia has come out with promotional offers that peg its fare at Rs3,169 between Kochi and Kuala Lumpur.
This is 41% lower than the lowest air ticket price on SpiceJet’s Delhi-Mumbai flight on March 26 of Rs5,374 plus taxes.
And it’s not just Air Asia which is offering discounted fares to push up demand. Its rivals are matching their fares to its offer.
V Chandrasekhar, senior manager (corporate communication), Air India, said his airline’s low cost subsidiary Air India Express, which flies to same routes as Air Asia and other overseas budget carriers was offering similar fares.
Deep Kalra, founder and CEO of travel portal MakeMyTrip said fares have hit rock bottom in the past one month due to rise in low fare capacity on these sectors.
29/03/10 Praveena Sharma/Daily News & Analysis

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26 seconds to ‘fly’ from Bangalore to Mumbai!

Mumbai: A survey by a popular internet portal offers the latest on just how fast one can now procure an airline ticket. The survey, which analyzed data for nearly 28,000 users between March 8 and 22, reveals that the fastest one can book a flight online is 26 seconds!
The data, which looks at the time taken to search, book and pay online for air tickets, reveals that men are quicker than women. Men took an average of 11.05 minutes — 30 to 40 seconds less than women — to book on Cleartrip. Only 13.5% of users during the period surveyed were female.
A Mumbai man bound for Bangalore was the fastest to book his ticket, taking just 26 seconds to complete the process. Small towns (except for Chennai) beat metros with respect to average booking time. Patna took an average of 10.56 minutes to book, Hyderabad 10.52 minutes and Gurgaon 10.46 minutes. Mumbai’s average was 11.7 minutes, Bangalore’s 11.03 minutes and Delhi’s was 11.02.
28/03/10 Anahita Mukherji & Chinmayi Shalya/Times of India

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Aero modelling show held

Guwahati: Meghalaya Governor RS Mooshahary today said that the aviation industry had lots of opportunities on offer, though the North East was yet to harness its potential.
Mooshahary was speaking at an Aero Modelling show-cum-competition organized by North East Students’ Aeronautical Forum under College of Aeronautical Engineering (CAE), Guwahati at the Nehru Stadium.
Meanwhile, Heman Sarma of India Institute of Technology, Guwahati was adjudged the winner of the competition for his display of the ‘Thunder Tiger Helicopter.’
27/03/10 Assam Tribune

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US aviation firms asked to set up bases in India

Washington: India has asked US aviation companies to think of establishing manufacturing bases and investing in aviation infrastructure like airports in India for a long-term commitment.
Visiting Indian Minister of State for Civil Aviation Praful Patel told senior US officials like Commerce Secretary Gary Locke and Transportation Secretary Ray LaHood Thursday that Washington should also explore the possibility of liberalising the export control regime.
Locke and LaHood told Patel that US companies were very impressed with the growth displayed by India's aviation sector and were keen to contribute to the growth, according to an Indian embassy press release. In response, Patel said these companies needed to "show a long-term commitment beyond just exporting to India" and should seriously "explore the possibility of establishing manufacturing bases and investing in aviation infrastructure like airports".
At meetings with Locke, LaHood and Federal Aviation Administrator Randy Babbitt, both sides acknowledged the positive role of aviation in improving connectivity between the two countries, since the signing of the Open Skies Agreement in 2005.
27/03/10 IANS/Economic Times

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FAA safety audit rates India pretty good: Patel

Washington DC: At a function marking Air India's launch of a new route between Washington DC and New Delhi, Minister of State for Civil Aviation Praful Patel said that in the last round of the Federal Aviation Authority's safety audits, “They have rated India pretty good… and it ranks amongst the better countries governing technical standards worldwide…so to that extent we have a very good engagement with them.”
During his visit to the U.S., Mr. Patel held meetings with Secretary of Commerce Gary Locke, Secretary of Transportation Ray LaHood, and Federal Aviation Administrator Randy Babbitt.
Mr. Patel further said he discussed with U.S. officials India's shift to GPS or satellite-based navigation systems, moving away from land-based systems that are in use at present. “That will shorten our air routes,” Mr. Patel explained, adding, “In a time when there a numerous environmental concerns such as global warming, we need to have shorter air routes and more efficient aircraft.” He said the GPS systems would be in place by “next year.”
On the delay by Boeing in delivering its 787 aircraft, Mr. Patel said: “Boeing is going to be paying compensation to India for the delay of the 787 [delivery]. The overall transaction with Boeing is for 68 planes; of these, 27 planes – which are 787s – are delayed definitely by a year and a half, so Boeing will be paying compensation for that.”
26/03/10 Narayan Lakshman/The Hindu

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India's private planes and helicopters take off again

If you want to see some of India's most powerful and influential businessmen, head over to the private helicopter pad at the Mahalaxmi Race Course in Mumbai.
While standing outside in the 30-degree heat, waiting for our own helicopter to arrive, we see the likes of Anil Ambani and Gautam Singhania whisk past, hurriedly ferried on and off their helicopters.
The combined net worth of these two Indian businessmen alone is $15bn, roughly equivalent to the economic output of Ghana.
According to the latest industry reports, the frequency of private planes or helicopters taking off has gone up significantly over the past few months.
Many in the industry are now expecting year-on-year growth of up to 20%.
Mr Pradeep Thampi is among those who are optimistic about the future again.
Sporting dark glasses and a serious demeanour, the well-suited, grey-bearded businessman has worked in the industry for 16 years.
His company, Executive Airways, runs a fleet of over 15 aircraft, chartering out private jets and helicopters to companies and individuals.
"Most of my aircraft were grounded during the recession as companies stopped spending altogether. It was a really bad time. But suddenly in the last couple of months, there has definitely been a change. Companies are spending again and there's definitely been an increase in demand for our services."
The starting rate for an hourly rental of one of his aircraft is about 80,000 rupees, roughly $2,000.
According to some reports, prices across the industry were reduced as much as 40%.
Experts agree that this is one of the reasons why demand has picked up, but there are other factors at play as well.
The aviation industry's growth is typically pegged to a country's economic growth.
With India's economy now returning to higher growth levels - the Government is forecasting GDP growth of around 8.5% for the financial year 2010-2011 - it is not surprising that the industry has also received a boost.
26/03/10 Delnaaz Irani/BBC

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Finance, Commerce lock horns on FDI limit in aviation

Even as private players in India's ailing airline business scout around for foreign partners to bail them out, strenuous lobbying efforts by them to have foreign investment limits in the aviation sector hiked to 75 per cent from 49 per cent have run smack into inter-ministerial turbulence.
With some of the biggest players in the Indian aviation industry leaning on the government to liberalise the sector and allow greater infusion of foreign funds, the Finance Ministry recently asked the Department of Industrial Policy and Promotion (DIPP) in the Commerce and Industry Ministry to move a proposal seeking to hike the FDI limit in the sector from 49 per cent to 75 per cent.
The suggestion has not found favour with the Commerce Ministry, which is reluctant to move on the issue. Commerce Ministry wants the Finance Ministry to take the lead and send a proposal in writing, to which it would then respond after examining it. “We had long ago proposed a hike in FDI limit in the aviation sector but at that time the Finance Ministry had turned it down. Now suddenly they are pressing for such a proposal and want us to move it, which is not the right approach. The onus is on them to do the needful if they want action on this front,” a senior official said.
25/03/10 The Hindu

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India to have GPS based navigation system by next year: Patel

Washington: India would have a GPS-based aviation navigation system by next year, Civil Aviation Minister Praful Patel has said.
Patel at a function organised by the US India Business Council here on Thursday told reporters that the GPS based navigation system would be in place by next year because by then India would launch its own satellite.
"In the meantime we would be doing trial run on borrowed satellite. This is for the entire Indian network. Our entire air mapping would be done by GPS," he said.
Patel also said that he has raised with top US officials the issue of American restrictions over dual use technology to India in the aviation sector. "Dual use technology restrictions were taken up by us also in our meeting with the US Commerce Secretary. Because of this there is a lot of restrictive growth in the aviation and aerospace industry."
"They (America) must be a little bit forthcoming in the aviation dual use technology," Patel said, adding that the issue was raised very strongly with the US officials during his meetings with them.
Patel said following the India-US Open Skies Agreement five years ago, the relationship between the two countries in the aviation sector has reached new heights.
26/03/10 PTI/Economic Times

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Domestic carriers cut weekly departures by 4% this summer

New Delhi: The domestic airline industry will overall reduce its weekly departures by almost 4 per cent in the summer schedule which starts from March-end this year.
The 10,609 weekly departures being planned from March-end is the lowest clocked by the industry since 2007 when the weekly departures stood at 10,624.
However, official data made available to Business Line show that Indian, Jet Airways and at least three low-cost airlines — SpiceJet, Go Air and IndiGo — all plan to increase their weekly departures in the summer schedule. On the other hand, Alliance Air, the 100 per cent subsidiary of Indian, JetLite and the Chennai-based Paramount plan to reduce their weekly departures in their summer schedule 2010 as compared to what they operated previously.
The State-owned Indian will register the highest growth in weekly take-offs (8 per cent) with 1,694 weekly departures from March this year, against 1,568 previously. Jet Airways has reported an increase of about 5 per cent in the number of weekly departures this March at 2,330 as against 2,212.
26/03/10 Ashwini Phadnis/Business Line

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Flying out of Delhi may become more expensive

New Delhi: Passengers will have to pay steeper fees when flying from the Capital’s Indira Gandhi International Airport (IGIA) after June—the result of a 42% increase in the cost of modernizing the airport before the Commonwealth Games in October.
The board of Delhi International Airport (Pvt.) Ltd (DIAL) on Thursday set the final cost of the project at Rs12,700 crore, up from the Rs8,975 crore estimated earlier, according to a company official who asked not to be named. The revision was adopted at a board meeting.
The increase clears the way for raising existing charges and possibly levying new ones on passengers using IGIA. It would also mean higher charges such as landing, parking and navigation fees for airlines.
IGIA, being modernized by a consortium led by GMR Infrastructure Ltd, will be the biggest and most expensive airport in India when the under-construction Terminal T3 is commissioned in June, offering passengers a world-class, integrated domestic-and-international facility with the latest in equipment.
For passengers and airlines, it will come at a price because the developer would have to pass on the increased project cost to end users.

Passengers are already being charged to help the developer recover Rs1,827 crore, or 20% of the earlier project estimate of Rs8,975 crore. They are paying Rs200 for taking domestic flights out of IGIA and Rs1,300 for flying abroad until 1 March 2012, as an airport development fee.
26/03/10 Tarun Shukla/Live Mint

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Govt creating database of suspicious air travellers

New Delhi: The finance ministry is working on a project to profile travellers, both Indian and foreign, entering and exiting the country whose activities are seen as suspicious. Over 2,000 people are believed to be on a surveillance list being shared by economic intelligence agencies.
This is perhaps the first time that India is working a federal database, on the lines of the passenger profiling mechanism in the US, UK and Israel, to curb economic offences.
Sources said the over-a-year-old project contains a database of NRIs and Indian and foreign nationals whose movements, activities and disclosures to airport authorities have been found to be of suspicious nature. The disclosures include items being brought into the country which might indicate a pattern and raise doubts with regard to the motive.
The project is being carried out by Economic Intelligence Council (EIC), the apex body under the finance ministry, which is responsible for combating economic offences.
25/06/10 Aditya Kaul/Daily News & Analysis

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Airliners land on facebook, twitter runway

Chennai: In a bid to reach out to more people at an informal level, an increasing number of airlines have started using popular social networking sites to provide flight information and details on latest offers and to get feedback from passengers, among other things.
That the airlines have chosen the right medium for interaction with their present and potential customers is evident from the number of fans registered with the clubs on Facebook, Orkut and Twitter.
Besides many international airlines, Jet Airways has a huge presence on Facebook through pages and communities created by regular flyers and employees or by the airline itself.
A Jet Airways spokesperson said within a month of its launch, they had over 5,000 facebook fans and over 1,000 twitter followers.
“This is a medium which entails engaging the consumers at their leisure. It is distinctive from traditional activities because it takes place in a public forum and encourages honest feedback,” explained Orhan Abbas, Vice President- India & Nepal for Emirates Airline, which has social networking activities on its corporate portal.
Other airlines that have active Facebook pages include British Airways with 8,596 fans; Cathay Pacific with 19,099 fans; Air France with over 10,000 fans; Singapore Airlines with over 46,000 fans; Air Mauritius with 6,800 fans and Air Asia with over 21,500 fans.
26/03/10 Mamta Todi/exprerssBuzz

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Praful Patel hopeful of India getting into the top 5 league in 7 years

New Delhi: India is likely to break into the global league of the top five aviation countries in terms of number of passengers carried and airports connected in the next five-to-seven years, the Minister for Civil Aviation, Mr Praful Patel said on Tuesday.
“We are already at the number nine position globally. Going by the current projections, India should break into the league of the top five global aviation countries in the next five-to-seven years,” the Minister said at a conference on ‘Building infrastructure challenge and opportunities'.
The one-day conference had been organised by the Planning Commission.
Turning his attention to the creation of infrastructure, the Minister announced that the integrated domestic and international terminal at Delhi airport will be inaugurated on July 3 this year.
Mr Patel also said that the Government has given permission for the construction of 12 greenfield airports around the country.
A number of leading airport operators have invested or formed joint ventures with Indian companies for undertaking these airport projects.
Pointing out that land acquisition is an area of concern, Mr Patel said “we will have to closely work with the States because airports cannot be made 100-200 km away from the cities. They have to be in close proximity”.
Talking about the future of the domestic aviation industry, the Minister said that there was “cautious optimism” about the future of the industry in 2010. “There has been a pick up in the fortunes of the domestic industry since October 2009,” Mr Patel said.
24/03/10 Business Line

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DGCA moots 1-yr jail for rowdy flyers

New Delhi: Harassing an air hostess, picking unnecessary fights with fellow passengers or doing anything that puts flight safety at risk will soon mean spending a year in jail with a fine of up to Rs 5 lakh. And, being drunk and not in control of oneself will no longer be a defence against this stringent punishment for such acts.
The existing loophole in the law, used in the past to protect unruly passengers on international flights from punishment, is being plugged. Now, rowdy or unsafe behaviour on a flight, whose next stop is India, will invite punishment irrespective of whether the alleged offence was committed in Indian or foreign airspace.
The Directorate General of Civil Aviation (DGCA) is learned to be laying down these new rules to curb the growing menace of unruly passengers. While incidents of teasing air hostesses and unsafe behaviour have grown dramatically in recent times, the existing rules were, in fact, saving the offenders instead of punishing them. Apart from self-proclaimed hijackers, rowdy passengers are usually let off with a warning simply because no watertight case can be made against them.
Legally speaking, three activities -- smoking, having alcohol (domestic flights only) and using mobiles -- are banned in an aircraft. But there is at present no written rule that forbids passengers from harassing or assaulting crew members or other passengers. Similarly, there have been instances where unruly passengers were handed over to the police only to be told later that since their rowdy behaviour happened in foreign airspace, they cannot be tried under Indian laws.
24/03/10 Saurabh Sinha/Times of India

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Choppers get dedicated flight paths

Mumbai: After years of delay and deliberation, the skies over Mumbai and Delhi have finally been neatly cut out to make exclusive flight paths for helicopters so that these small rotor-wings don’t get caught up in the heavy traffic of fixed-wing aircraft.
In Mumbai, 16 dedicated, uni-directional flight paths have been chalked out at a height of 500 and 700 feet above ground level for helicopters to do visual flying between Juhu airport, Mumbai airport, Bombay High (can go up to 1,000 feet), Mahalaxmi Racecourse and two helipads in Navi Mumbai. In Delhi, choppers will have eight dedicated flight paths to fly in and around the capital. Different tracks—all at 500 or 700 feet—have been planned for flying east, west, north and south within both these cities. It’s like a one-way, fast lane of sorts for helicopters’ flights.
The corridor will bring savings for the helicopter operator with lesser fuel burn and reduction in flying time for passengers. It will be green with lower carbon emissions per flight. Lastly, it bringsrelaxed nerves for helicopter pilots and air traffic controllers in Mumbai and Delhi.
For a helicopter flying from, say, Mahalaxmi Racecourse to Dhirubhai Ambani Knowledge City helipad in Navi Mumbai, there is the Kilo 010 corridor. The helicopter will climb to 700 feet and proceed initially in south-east direction and then go north-east, keeping Elephanta island to the left to reach Navi Mumbai.
24/03/10 Manju V/Times of India

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IGT becomes 1st Travel BPO Globally to be COPC certified on standard version 4.3

Gurgaon: InterGlobe Technologies (IGT), a pioneer and global leader in travel technologies and services, announced today that it has become the world’s first Travel BPO Globally to be certified on the COPC-2000 CSP Standard version 4.3, clearing the certification in the first go. With this, IGT joins a select number of companies currently COPC certified including blue chip brands such as Microsoft, Sony, General Motors and TCS eServe.
The COPC certification is awarded by COPC Inc., a major international consulting firm headquartered in New York and the leading global authority on customer contact center and vendor management operations. Since 1995, COPC has been assisting client CSPs and Vendor Management Organizations (VMOs) around the world, to develop and execute high return on investment, operational management strategies. The certification is based on the COPC-2000 CSP Standard, which was developed by the COPC Standards committee that included individuals from Microsoft, Motorola, Dell, American Express, L.L. Bean and other customer-focused companies seeking to standardize the level of service quality provided by CSP organizations and is recognized worldwide as the leading standard of excellence for customer contact and fulfillment centers. It is a comprehensive operation performance standard that specifies minimum operational requirements in critical functional areas. It ensures the COPC Performance Management System is properly implemented and producing results.
The certification was awarded after a rigorous evaluation by COPC Inc. IGT had to comply with a total of 22 requirements across 4 Categories: Leadership & Planning, Processes, People & Performance.
Mr. Vipul Doshi, CEO- InterGlobe Technologies congratulated the IGT team on the achievement. He said: "This indeed is a moment of great pride for all of us here and this accreditation was only made possible by the hard work of each one of you. My heartiest congratulations to all and I am sure you would continue with same enthusiasms & passion to ensure that IGT becomes the world leader."
Speaking on the achievement, Mr. Mohit Magon, VP-Business Excellence- InterGlobe Technologies said, "As a quality process driven organization, we are geared towards meeting the delivery criteria, emphasizing on providing reliable services to our clients. This ensures on time deliveries to help meet the scheduled time and cost commitments. We have once again demonstrated that we have incorporated quality improvements into the fabric of our daily lives and brought IGT to a league of its own."
“COPC Inc. congratulates IGT on this achievement, and commends the focus and energy with which IGT implemented the COPC Performance Management System in a very short span of time,” says Shreekant Vijaykar, Lead Auditor, COPC Inc. and Senior Consultant with QAI Global Services, COPC Inc.’s implementation partner in this region. He adds, “This is a good example of how a BPO and Customer Service center, servicing the travel domain, has successfully applied the COPC Framework to a diverse set of processes including voice-based and non-voice contact processes. With the COPC Framework, IGT has been able to foster a culture of performance, creativity and collaboration within the company. The COPC certification affirms IGT’s commitment to excellence for their customers.”
The Prestigious COPC Certification follows close on heels of the recent ISO 9001:2008 certification & PCI DSS 1.2 recertification awarded to IGT. IGT has thus raised the bar yet another notch, for customer service and delivery excellence.
24/03/10 PRESS RELEASE/InterGlobe Technologies

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Spike in capital costs hurts full service carriers

Bangalore: Widening capital-cost gap between the full service carriers (FSCs) and the low cost carriers (LCCs) is giving the latter better pricing power in the market without compromising on volume growth and profits.
This is in stark contrast to the situation a few years back when FSCs were trying to push budget airlines out of the market by offering fares that were at par or lower than those of the LCCs on certain routes.
Industry players and experts say the legacy carriers cannot do that anymore as no-frills airlines have enough cost cushion to adjust their fares to competition without sacrificing yields.
A senior executive with a leading budget airline, who did not want to be named, said at today’s fares and costs, budget airlines SpiceJet, IndiGo and GoAir are able to achieve breakeven load factor more easily than FSCs such as Jet Airways, Kingfisher Airlines and Air India.
“While we (budget carriers) have the usual benefit of lower distribution and infrastructure costs in comparison to the FSCs, in India our capital costs —- including interest, depreciation and lease rentals —- are also lower. This gives us huge cost advantage over them (FSCs),” he said.
A SpiceJet presentation to investors on its website puts its average cost per available seat kilometre (CASK) between April 2009 and January 2010 at Rs 2.31. This is around 35% lower than Jet’s CASK of Rs 3.60 during the same period.
A report brought out by Citi on Wednesday by analysts Jamshed Dadabhoy and Arvind Sharma says FSCs’ capital costs per passenger have jumped several fold over the last few years while those of budget airlines have remained stable or moved up marginally.
23/03/10 Praveena Sharma/Daily News & Analysis

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'India has potential to become Asia's aviation hub'

Kannur: The civil aviation sector is poised to soar new heights in coming years as the country has potential to become the aviation hub of Asia-Pacific region, Civil Aviation Secretary M Madhavan Nambiar said here today.
Presently only two per cent of Indians depend on flights for their domestic and international travel, which was bound to increase significantly in the coming years with more airports being built and more airlines entering the sector, Nambiar said during a programme organised by the North Malabar Chamber of Commerce here.
22/03/10 Press Trust of India

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Indocopters' third MRO facility in Bangalore to open soon

Indian helicopter sales and support company Indocopters will open its third maintenance, repair and overhaul facility for Eurocopter rotorcraft in Bangalore in the second quarter of 2010.
The company, which distributes and maintains Eurocopter aircraft in India, also plans to open a fourth MRO facility in Bhubaneshwar in eastern India.
This will "mostly likely come up in Bhubaneshwar by the second half of this year", says Eurocopter chief executive Mike Meyer.
Indocopters, part of Vectra Group, already has MRO facilities in Greater Noida and Mumbai. It is investing Rp1.5 billion ($33 million) in the first three MRO facilities, it says.
Indocopters has facilitated the sale of around 20 Eurocopter types over the past three years including four helicopters to private owners and commercial operators at the India Aviation air show in Hyderabad earlier this month.
23/03/10 Ghim-Lay Yeo/Flightglobal

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India to need $120-bn for aircraft, aviation infra by 2020

India would require $120-billion for aircraft acquisition and building aviation infrastructure to meet domestic passenger traffic, expected to touch 240-260 million per annum by 2020.
The airport sector alone would require a total of $20-billion investment over the next decade, in addition to the $10-billion already committed in the last 5-years, according to a White Paper on the aviation industry.
"By 2020, domestic traffic will reach 160-180-million passengers per annum and international traffic will exceed 80-million," a White Paper on Information Technology in Indian Aviation, presented jointly by the Centre for Asia Pacific and SITA, said.
According to the paper, this investment would be required for aircraft, airport development and ancillary services such as ground handling, ATC, MRO, catering and training.
Major aircraft manufacturers -- Boeing and Airbus -- have predict that India's aircraft fleet-size is expected to reach by over 1,000 by 2028 from the present 380 planes.
21/03/10 Press Trust Of India/Hindustan Times

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Private carriers log on to social networking sites

Mumbai: India’s private airlines are increasingly turning to social networking websites such as Facebook, Twitter and Orkut to inform passengers, particularly frequent flyers, about promotions and new offers, besides receiving feedback. But experts say their following on these websites is way too low and they lag behind international carriers in using the media imaginatively.
Social networking websites allow users to build global communities of people with whom they share interests or activities.
Jet Airways (India) Ltd, the country’s largest airline by passengers, says it has 5,000 Facebook and 1,300 Twitter fans. The airline set up a separate social media division to manage its presence on these platforms. Other airlines, too, have dedicated employees to monitor social media interactions. The airline is encouraging passengers to share their views as part of what it calls the first phase of its social media expansion strategy. Most followers are frequent fliers.
The country’s second largest carrier Kingfisher Airlines Ltd boasts 2,167 followers on Twitter, who are promised regular updates and new offers.
India second largest low-cost carrier SpiceJet Ltd claims more than 1,000 fans across all social networking platforms.
The carrier is also present on YouTube and Flickr, which allow the sharing of audio-visual content.
Chennai-based Paramount Airways Ltd uses Twitter and Facebook to inform passengers about new promotions and schemes under Paramount Royale, its frequent flyer programme.
19/03/10 PR Sanjai/Live Mint

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Civil Aviation mulls new anti-hijack laws

The Praful Patel-led Civil Aviation Ministry is mulling the amending of India's current laws against hijacking. The UPA government is likely to make the anti-hijacking law much tougher by including death sentence as a punishment, and also inserting a clause that entitles the government o shoot down a hijacked plane.
The Cabinet is expected to consider the proposal moved by Civil Aviation Ministry to amend Anti-Hijacking Act of 1982 to make it more stringent to deter hijackers from using an aircraft as a missile.
Sources said the Cabinet will consider amending Section 4 of the 1982 Act, which provides for life imprisonment and a fine for hijacking, to include death penalty also.
The amendments being mulled include shooting down an aircraft whose hijack has been established, Shooting down an aircraft when hijackers have intentions to target vital installations, and Immobilisation of the aircraft and disallowing it to take off if the hijack takes place on Indian soil.
19/03/10 Times Now

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Air travel: IATA asks for service tax roll-back

Global airlines' body IATA has asked the government to roll back a proposal to impose service tax on domestic and international air tickets on all classes, saying it would not only be counter-productive but also go against India's overseas obligations.
"I am writing to urge you to roll back fully the service tax applicable to domestic and international air transport (namely the tax applied to first, business and economy class tickets, and cargo)," International Air Transport Association chief Giovanni Bisignani said in a recent letter to finance minister Pranab Mukherjee.
The 2010-11 Finance Bill, tabled in Parliament, proposed to expand the scope of air transport services 'to include domestic journeys and international journeys in any class' for a 10 per cent service tax.
Currently, the tax is imposed only on foreign travel by First or Business Class. Opposing 'in the strongest terms' the 'unacceptable' proposal, he said the service tax 'not only contravenes (UN body) International Civil Aviation Organisation's policies, but is also counter-productive'.
He quoted published studies to show that a 10.3 per cent of service tax and cess would increase the cost of tickets, which would lead to a fall of 8 per cent in air travel and have a resultant decline in revenue of the airline industry by over $300 million per annum.
18/03/10 Rediff.com

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GE Aviation to spend $300 mn in India

New Delhi: Commercial and military jet engine maker GE Aviation, a unit of General Electric Co., plans to spend some $300 million (around Rs1,368 crore) in India ahead of deadline to fulfil its obligations for engine purchases by flag carrier Air India, said country director Nalin Jain.
The so-called offset obligation is part of an order placed by Air India for 111 Airbus and Boeing aircraft in 2005 and 2006, valued at $11 billion at list prices. GE Aviation is the key engine supplier for these aircraft together with CFM International, its 50:50 joint venture with France’s Snecma SA.
GE Aviation undertook to source aircraft engine components from Indian suppliers and invest in India part of the value of the deal to the tune of $300 million.
“We have close to $300 million in offsets. The timeline is till 2020 or so, but we will be able to surpass that,” Jain said in an interview on the sidelines of the India Aviation 2010 air show in Hyderabad earlier this month.
Jain said GE had tied up with a dozen manufacturing firms, including Godrej Group and state-owned military plane maker Hindustan Aeronautics Ltd, to source aeronautical components for engines to meet the offset obligations. These include parts for CFM engines.
It has also, in the past 18 months, certified and trained some of these firms to align their standards for components to meet GE requirements. It has tried to bring in foreign firms to develop partnerships with local firms to build a steady supply chain.
16/03/10 Tarun Shukla/Live Mint

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Air traffic grows 15.6% in February

New Delhi: Continuing the strong revival flight, domestic air travel has grown by 15.6% in February, with 39.15 lakh people flying within the country as compared to 33.85 lakh in the same month last year.
More importantly, February's figure was close to January's 40.87 lakh and there was not a sharp drop after the peak winter travel season.
"The growth is robust and yields have improved. March will see a modest growth over last year and then from April onwards we expect strong growth numbers. The domestic airline industry is on a recovery path and the low-cost model has proved itself here," said Kapil Kaul, India head of the Centre for Asia Pacific Aviation (CAPA).
Naresh Goyal's Jet-JetLite combine remained the market leader with a 26.1% share and Vijay Mallya's Kingfisher at 22.7%. They maintained these strong figures, thanks to utilising most of their domestic fleet on low-cost carriers (LCCs) that have established their dominance in Indian skies. LCCs today account for over 70% of all domestic air travel. Air India (domestic), the only all full service domestic airline, logged 17.2% share in February. Jet Airways standalone had an 18.8% share.
16/03/10 Times of India

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Airline traffic dips 4% in February

Mumbai/New Delhi: Air traffic in India has dipped 4% to 38.63 lakh passengers in February from 40.87 lakh in January, according to the data released by the Directorate General of Civil Aviation (DGCA). Traditionally, Jan-March quarter is considered a lean season for air traffic. However, number of passengers carried by domestic airlines in first two months of this year is 19% higher at 80.56 lakh, as against 67.61 lakh in the corresponding period of year 2009, a sign of the sustained economic recovery.
Private carrier Jet Airways has secured 26.1% market share flying 10.08 lakh passengers. Credit JetKonnect, the airline’s no-frills service with load factors of over 90%, launched in May 2009 with nearly 15-10% lower fares then Jet, has helped the carrier report a high market share. The UB group-owned Kingfisher Airlines has managed a 22.7% market share and the carrier flew 8.77 lakh passengers. Flag carrier Air India has secured the third position with a 17.2% market share. The public sector airline flew 6.63 lakh passengers. In the low cost space, Delhi-based Indigo has managed a share of 14.9% by flying 5.77 lakh passengers while SpiceJet flew 4.65 lakh passengers to record a 12% share. The Wadia Group promoted GoAir and Chennai-based Paramount Airways and flew 2.11 lakh ans 0.62 lakh passengers each and commanded a market share of 5.5% and 1.6% respectively.
16/03/10 Financial Express

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One in four airline seats empty in February

Bangalore, Mumbai: Lean season and firmer airfares saw domestic air passenger numbers slipping for the second month in a row in February.
According to ministry of civil aviation data released on Monday, local carriers flew 5.49% or 2.24 lakh fewer passengers at 38.63 lakh last month compared with 40.87 lakh in January.
Despite the lean season, seat factors of all airlines were high at mid-70% or 80%, similar to January levels.
This indicates that on an average only one out of every four seats of the domestic carriers was empty in February.
The number of fliers had dipped 8.9% in January, too, compared with December, when airlines had carried 44.87 lakh passengers.
All airlines except JetLite, the low-cost subsidiary of Jet Airways, carried lesser passengers in February compared with January.
One of the reasons for this is February has 28 days compared with 31 days in January.
According to a senior executive ofa low-cost airline, who did not want to be named, JetLite’s passenger numbers in February seems higher as it had very high cancellation rates in January due to fog.
Industry experts are not viewing these seasonal drops as a matter of concern or the end airline sector’s revival story that began in June last year.
16/03/10 Praveena Sharma & Ramiya Bhas/Daily News & Analysis

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Seat occupancy up on domestic flights but concerns remain

New Delhi: Indian carriers are enjoying increasing occupancy on domestic routes compared with two years ago.
Analysts, however, warned that a sudden increase in capacity, hike in jet fuel price or a new service tax on domestic travel could offset the gain.
Domestic flights across airlines were 72-85.2% full in February, according to data released by the regulator Directorate General of Civil Aviation (DGCA) on Monday.
In contrast, occupancy rates for the same month in 2008 ranged between 58.3% and 75.9%, and between 66.3% and 82% in February 2009, when the country was in the middle of an economic slowdown.
National flag carrier Air India, which accounted for the lowest occupancy rate in February 2008, saw 72% occupancy in February.
“If capacity is constant and airlines are not adding too many seats, the existing flights will become full, which is what we are seeing,” said Samyukth Sridharan, chief commercial officer of India’s second largest low-cost carrier SpiceJet.
There were 5.50 million seats on offer in February 2008 on domestic routes by all airlines put together, which shrank to 4.87 million in February 2009 and rose to 5.30 million in February. The cuts were caused by a need to rationalize capacity due to the economic slowdown and rising fuel prices.
Sridharan said the number of passengers had also increased since 2008.
The DGCA data shows nearly 3.86 million passengers took to the skies in February, compared with 3.58 million a year ago.
15/03/10 Tarun Shukla/Live Mint

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Domestic passengers carried Scheduled Airlines February 2010

The total domestic passengers carried by the Scheduled Airlines of India in the month of February, 2010 was 38.63 lakhs. The total passengers carried by domestic airlines in the month of January, 2010 was 40.87 lakhs. The break-up for the month of February, 2010 is as follows:
Air India (Domestic) – 6.63 lakhs, Jet Airways – 7.26 lakhs, Jet Lite – 2.82 lakhs, Kingfisher – 8.77 lakhs, Spice Jet – 4.65 lakhs, Paramount – 0.62 lakhs, Go Air – 2.11 lakhs, IndiGo – 5.77 lakhs.
The percentage share of the carriers in the month of February, 2010 was:
Air India (Domestic) 17.2%, Jet Airways – 18.8%, Jet Lite – 7.3%, Kingfisher –22.7%, Spice Jet – 12.0%, Paramount – 1.6%, Go Air – 5.5% and IndiGo – 14.9%.
The seat factors of the domestic airlines in the month of February, 2010 was:
Air India (Domestic) – 72.0%, Jet Airways – 75.0%, JetLite – 79.5%, Kingfisher Airlines – 75.9%, Spice Jet – 81.3%, Paramount Airways – 85.2%, Go Air – 78.0% and IndiGo – 83.0%.
15/03/10 PRESS RELEASE/Press Information Bureau

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Govt may provide service tax relief for airlines

New Delhi: With airlines lobbying hard against the proposal to bring air travel under the service tax net in Budget 2010-11, the government may provide some relief to the sector hit badly by a global slowdown. The finance ministry is likely to specify a small fixed amount as the levy on all domestic and international tickets.
Official sources told The Indian Express that airlines will be given a choice — either to pay an absolute amount or 10 per cent of the base fare charged by them from customers. The absolute amount of service tax on international tickets will be higher than on domestic air tickets. The sources, however, said even if the service tax rate was 10 per cent, the effective rate could work out to be lower with the ministry planning to extend the benefit of abatement — reduction or exemption from taxes granted for a specified period — they clarified.
16/03/10 Shruti Srivastava/Indian Express

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Jet Air continues to dominate skies

New Delhi: Jet Airways continued with its domination of the domestic market, while the state-owned National Aviation Company of India Ltd (NACIL) finished third, according to the latest air traffic data for February released by the civil aviation ministry.
In a positive sign for the aviation industry, which has been going a through a bad patch, air traffic for the first two months of the year showed a growth of 19.2 per cent as compared with the same period last year. Passengers carried by domestic airlines from Jan-Feb were 80.6 lakh as against 67.6 lakh in the corresponding period of 2009.
Jet Airways along with its subsidiary JetLite grabbed the highest market share flying most passengers —10.1 lakh in February, followed by Kingfisher and its low-cost subsidiary Kingfisher Red with 8.8 lakh and Air India (Domestic) with 6.6 lakh.
No-frills carriers IndiGo, which carried 5.8 lakh, SpiceJet with 4.7 lakh and GoAir with 2.1 lakh, followed them. Paramount carried 62,000 passengers.
15/03/10 Hindustan Times

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Private planes return to corporate radars

Mumbai: Business aviation, or the use of private planes and helicopters by companies, is rebounding as economic recovery shows signs of being sustained and firms that provide such facilities return to profitability.
Companies, both large and small, are resuming talks with corporate jet manufacturers as prices of private jets have come down by 40%-45% from their 2008 levels.
“Ever since this new year, there is lot of buzz in the Indian business aviation scene,” said Karan Singh, vice-president of the Business Aviation Association of India.
“Indian companies could conclude many deals before this month-end and the sector is expecting a year-on-year growth of 15-20%,” he told Mint last week.
Religare Voyages Ltd, promoted by Religare Enterprises Ltd, has announced it will start an international air ambulance service with a private jet after obtaining regulatory approvals. “We had stopped acquisitions when the slowdown hit the economy. Now we are restructuring our business model to tap all opportunities of business aviation,” said Sanjay Godhwani, group chief executive and managing director of Religare Voyages, adding that a few business announcements were in the offing.
Taj Air, promoted by Taj Hotels Resorts and Palaces, has bought two private planes recently—a Falcon 2000LX jet and a P180 Avanti II turboprop aircraft.
And at India Aviation 2010, the second international conference on civil aviation in Hyderabad earlier this month, aircraft and helicopter makers signed a raft of deals with Indian firms for their products.
14/03/10 P.R. Sanjai/Live Mint

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Religare plans aviation foray with north-east flying ops

New Delhi: The Malvinder Singh-promoted Religare is planning to enter the passenger aviation segment by undertaking flying in north-eastern India.
Under the umbrella of its subsidiary company, Religare Voyages, the company has sought necessary regulatory approvals from the civil aviation ministry and the air safety regulator Directorate General of Civil Aviation (DGCA). “We are planning to launch dedicated passenger services in the north-eastern region, which is relatively underserved when it comes to air connectivity,” said Sanjay Godhwani, CEO and Managing Director, Religare Voyages.
The company intends to get clearance for a non-scheduled operating permit — which is granted for carrying out chartered operations — from the ministry to run these operations in the north east. “Under the NSOP category, we will be applying for a special permission for providing regular passenger services. We intend to bring passengers from the remote areas of the north east to Guhawati. From Guwahati, many private airlines connect to the rest of the India,” said Godhwani.
The company will deploy eight-seater turbo props which it intends to upgrade to 11-12 seater aircraft.
15/03/10 Smita Aggarwal/Indian Express

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Chopper traffic soars on IPL night

Mumbai: The third edition of IPL started with a bang on Friday but one of its fallouts has had chartered chopper services drooling for more. The Indian corporate scene saw an unprecedented mass transportation by chartered choppers as more than 150 corporates were flown from the Mahalaxmi Racecourse and the Juhu airport to the venue of the first IPL match, DY Patil Stadium, in a span of a couple of hours.
The Mahalaxmi helipad saw 17 15-minute sorties to the stadium that occurred in the two hours between 4pm and 6pm.
The numbers are of significance as, in Mumbai skies, which are congested with commercial airline flights, smaller fry like helicopters have to endure delays if they have to fly across the approach paths of these jets.
"It could not have been possible without total co-operation from air traffic controllers in Juhu and Mumbai's main airport. There were absolutely no delays and that is why we could achieve these volumes and carry over 100 IPL top honchos and businessmen in two hours. Never have so many corporates been flown from one place to other in such a short time," said Pradip Thampi. His Executive Airways operated these flights with six helicopters, each carrying five-six passengers.
The helicopter traffic from Juhu airport too was dense. The helicopters that take off from Juhu fly 8-16 kms north keeping to the west of the Western Railway track and then are directed by the approach radar controller of Mumbai airport to the stadium. With the third edition of IPL just taking off and the Commonwealth Games just round the corner, aviation industry experts say both events will be a huge boost for inter- and intra-city helicopter charter services. Each such flight can cost anything between Rs 85,000 and Rs 1 lakh, with the amount being borne by the fliers.
14/03/10 Manju V/Times of India

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Govt spent Rs 16.56 cr on planes for Modi:Cong

The Opposition for the first time presented records of Chief Minister Narendra Modi’s journies in private charter plane in the last five years with proof during the budget discussion in the Gujarat Assembly on March 12.
Senior Leader of Opposition, Arjun Modhwadia said, “The state government has paid Rs 16.56 crore as rent to private plane companies between 2003 to 2007.”
He also said that no chief minister in the past had spent so much on travel. “The government can buy a helicopter with this amount. The government already owns one chopper and one plane.
Yet, it spent such a huge amount to charter planes.”
The Congressman said, “In all, Modi has used aircraft of 18 companies including Essar Shipping Ltd, Adani Export Ltd and Reliance Industries Ltd. Poonawala Aviation Pvt Ltd, Asia Aviation Limited and A R Aviation Limited are also part of the list.”
The planes were hired for trips within India. Modi has also chartered aircraft to fly to foreign countries.
Providing more details, he said, “In 2003, Modi travelled five times and spent Rs 1.25 crore. In 2004, the government spent Rs 3.6 crore on 16 trips. He flew 21 times in 2005, spending Rs 3.48 crore.
In 2006, he charted a plane 24 times and spent Rs 4.99 crore. He flew 34 times between January and May 2007, spending Rs 3.23 crore on a trip.
14/03/10 Dilip Patel/ Mirror

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Fliers to soon be rid of transaction fee burden

Kolkta/Mumbai: Finally, some cheer for fliers. The transaction fee they had to pay travel agents, mostly for tickets on foreign carriers, will soon be done away with.
Nine months after a directive by the Kerala high court, the Directorate General of Civil Aviation (DGCA) on Friday issued a directive that agents will have to stop charging transaction fee from customers.
The agents had started levying this arbitrary fee after several airlines stopped paying them a commission. DGCA has now ordered the carriers to start paying up, pointing out that zero-commission has made consumers cough up more in the form of transaction fee.
“An unscrupulous agent can charge an exorbitant amount. The system of zero-commission also gives rise to market dominance by some big agents, who are paid hefty amounts by the airlines in the name of productivity,” says DGCA.
“Over 90% of Indian fliers travelling abroad — including corporate clients — purchase tickets via agents. The directive will let us sell tickets at the price that the airline sells over the counter or online,” said Travel Agents’ Federation of Eastern regional chairman Anil Panjabi.
13/03/10 Times of India

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Travel agents breathe easy

New Delhi: Travel agents claimed a major victory today after the directorate general of civil aviation ordered foreign airlines to pay commission on tickets sold through various business channels.
The directive — which was issued on March 5 — said the zero commission system that the airlines had tried to foist on travel agents in India had not proved to be beneficial for travellers.
The civil aviation regulator said the zero commission system had been “detrimental to consumer interests in more than one way”. It said 13 foreign airlines were forcing consumers to pay more in the form of transaction fees. This had given rise to market dominance by a few big travel agents who were charging exorbitant amounts by way of transaction fees. In return, they were receiving “hefty amounts from the airlines in the name of productivity”, the directive said.
The airlines not paying commission include British Airways, Lufthansa, KLM Royal Dutch, Singapore Airlines, Delta, Continental, North West Airlines and Air France.
13/03/10 The Telegraph

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Airlines pulled up for charging abnormally high and low fares

New Delhi: In the first action of its kind, the aviation ministry has cracked the whip on both Indian and foreign carriers for charging fares on both extremely low and high side.
The Directorate General of Civil Aviation (DGCA) on Friday issued notices to two biggest private Indian airlines and a Malaysian low-cost carrier towards this end. The desi airlines have been asked to explain why they are charging exorbitant high fares on the sectors like Delhi-Dehradun or Bangalore-Hubli where they enjoy a monopoly scenario.
The foreign LCC has been asked to explain how it is offering an extremely low predatory return fare of Rs 3,000 (all inclusive) from south India to Malaysia.
"Airlines can't be allowed to unreasonably alter fares to enjoy benefits of a monopoly on certain routes at the cost of the traveller. Similarly, they can't be allowed to offer ridiculously low fares, drive competition out of the business and eventually become a monopoly in future to exploit the situation. I have asked the DGCA to ensure a system to strike a right balance of fares," aviation minister Praful Patel told TOI, soon after the DGCA notices were issued.
DGCA chief Nasim Zaidi has set up an analysis unit manned by tariff experts who monitor fares of both foreign and Indian airlines on a real-time basis. A monthly report is prepared which indicates excessive or predatory fares (that don't even cover costs) being offered by airlines.
13/03/10 Saurabh Sinha/Times of India

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Outbound fliers can buy cigarettes sans picture warning

Despite a ban on sale of cigarettes without pictorial warnings in the country, the Supreme Court Friday allowed their sale to outgoing passengers by the duty-free outlets at departure lounges of Indian airports.
Approving the sale, a bench of Chief Justice K.G. Balakrishnan, Justice Deepak Verma and Justice T.S. Thakur ordered the release of international brand cigarettes worth Rs.75 lakh, seized by custom authorities from outlets at departure lounges of Mumbai international airport, for not carrying the pictorial warning.
The bench gave its order on a lawsuit by the DFS India Private Ltd, which has been given the license to set up duty-free shops at various international airports in the country.
The private firm had come to the apex court challenging a recent Bombay High Court refusal to order custom authorities to release their stocks of cigarettes, which were without the statutory pictorial warning.
The apex court bench gave the firm the relief, acceding to senior counsel Mukul Rohatgi's argument that the cigarettes being sold at duty-free outlets to outbound passengers at departure lounges of India's international airports are akin to the export of cigarettes.
Cigarettes, manufactured and meant for export, are exempt from the domestic laws for having statutory pictorial warning of cancer-hit lungs printed on their packets.
12/03/10 IANS/Sify.com

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Govt planning to reconstitute DGCA

New Delhi: The government is planning to reconstitute India's aviation regulatory body as an autonomous one and has asked International Civil Aviation Organisation to carry out the feasibility and advisory study in this regard.
"International Civil Aviation Organisation (ICAO) has been asked to carry out feasibility study for reconstitution of Directorate General of Civil Aviation (DGCA) as an autonomous civil aviation body with enhanced financial and administrative authority," Civil Aviation Minister Praful Patel said in a written reply to Lok Sabha today.
11/03/10 Press Trust of India

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Airline losses to shrink this year

New Delhi: Indian airlines will reduce their losses significantly this calendar year, the International Air Transport Association, or Iata, said in its forecast for the industry on Thursday.
An increase in taxes, however, may hurt the industry, which incurred combined losses of more than $1.5 billion (Rs7,000 crore) in 2009, Iata said.
“We are projecting a growth of 5.1% (in international traffic) for India for this year,” Giovanni Bisignani, director general and chief executive of Iata, said in a conference call from Geneva.
While Iata did not give a projection on actual losses for Indian carriers in 2010, its chief economist, Brian Pearce, said the association expects “significantly reduced losses... Asia-Pacific on the whole will have a net profit of $900 million. You can see the trend.”
The Asia-Pacific region, which includes India, lost $2.7 billion in 2009, according to Iata.
Indian airlines, which make up 2% of global airline traffic, are expected to lose at least $1.5 billion in fiscal 2010, with national carrier Air India’s losses alone projected at Rs5,400 crore.
Globally, Iata expects airlines to lose $2.8 billion in 2010, half the $5.6 billion in losses it had predicted in December for the year. “It’s halfway to full recovery. It’s great news but not yet time to party,” Bisignani said.
For Indian airlines, however, the main concerns would be the new service tax being introduced on air travel as also “pre-financing of airport” infrastructure through development fee such as those levied at the Delhi and Mumbai airports, he added.
“The service tax on international economy (airfares) is a violation of India’s commitment under the Chicago Convention. We are strongly against it,” Bisignani said, adding he would be writing to finance minister Pranab Mukherjee on the matter.
11/03/10 Tarun Shukla/Live Mint

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MRO Facilities for Aircraft

The Minister for Civil Aviation, Shri Praful Patel gave the following information in Lok Sabha today on Maintenance, Repair and Overhaul (MRO) facilities for aircraft in India:
• The National Aviation Company of India Limited (NACIL) has full-fledged MRO facility at Mumbai which takes care of MRO requirement of B747-400 and A310 aircraft and engines/APUs/components & accessories fitted on these aircraft.
• Air India & M/s. Boeing are working on setting up an MRO facility at Nagpur to undertake major checks of B777 and B787 aircraft. Air India is also planning to set up MRO facility at Mumbai for GE90/GenxEngine as GE Network partner.
• One more MRO facility is being set up by Air India at Thiruvananthapuram for MRO requirement of B737 aircraft, for which the hanger construction is nearing completion.
• Air India is also proposing to construct a hanger at Delhi to cater for the major checks of B777 and B787 aircraft.
11/03/10 PRESS RELEASE/Press Information Bureau

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Second meeting of Parliamentary Consultative Committee on Civil Aviation held

The Parliamentary Consultative Committee on Civil Aviation met to discuss issues relating to the Civil Aviation Sector. Welcoming the Members the Chairperson of the Committee, Minister for Civil Aviation, Shri Praful Patel observed that the aviation industry had gone through a critical phase in the past two years. He briefed the Members on the policies of the Government and the problems of the sector. He remarked that self-regulation by airlines to face the economic crunch had brought about reduced capacity. However, airlines are registering growth once again and more new flights to different parts of the country is expected to start soon. The Minister made a special mention about the problems being faced by Air India. He said that the Government is committed to ensure that the national carrier does well and turns around. He ensured the Members that the next meeting of this Committee would focus on Air India – a detailed presentation would be met to the Members on the problems of Air India and plans to turnaround the company, so that the Members could give their suggestions in this regard.

Cutting across party lines, Members expressed appreciation of the modernization and upgradation of airports across the country. Besides, Members, raised various important issues regarding the sector including growth of cargo operations in the country, shortage of air traffic controllers, corporatisation of ATC, helicopter operations, connectivity to remote areas like North-East, Leh and Andaman & Nicobar islands, pilot training, naming of airports across the country, facilities of Members of Parliament at airports, status of flying clubs across the country, use of cell phones in aircraft, airport entry passes, use of body scanners at airports, User Development Fees at airports, and most importantly the crisis situation in Air India.
In the course of the meeting, the Minister announced that the Standard Operation Procedure for helicopter operations would be notified by 15th March, 2010.
The meeting was attended by Shri Milind Deora, Shri Ninong Ering, Shri Mithlesh Kumar, Dr. Prasanna K. Patasani, Smt. Sumitra Mahajan, Shri Dilip Gandhi, Shri Ram Singh Kaswan, Shri Ashok Argal, Shri Ambica Banerjee, Shri Hassan Khan, Shri P.C. Chacko, Shri Manicka Tagore, Shri Poorika Balram Naik from Lok Sabha and Shri Santosh Bagrodia, Shri Lalhming Liana, Shri Tarlochan Singh, Shri Vijay J. Darda, Shri Tiruchi Siva, Shri Adbul Wahab Peevee, Shri Rajiv Pratap Rudy and Shri Avtar Singh Karimpuri from Rajya Sabha.
11/03/10 PRESS RELEASE/Press Information Bureau

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Air traffic, airlines registering growth once again: Patel

New Delhi: The civil aviation sector in India seems to be coming out of the rough patch, with air traffic and airlines registering growth once again, Civil Aviation Minister Praful Patel said today.
While self-regulation by airlines to meet the severe financial crunch has led to reduction in capacity in the market, airlines and air traffic were "registering growth once again" and more new flights are expected to start soon, he said at a meeting of the Parliamentary Consultative Committee on Civil Aviation here.
With the government recently clearing separate air corridors for helicopters in Mumbai and Delhi, Patel announced that the Standard Operation Procedure for helicopter operations would be notified by March 15.
When the members raised the issue of financial problems being faced by Air India, the Minister assured them that the government was committed to ensure that the national carrier does well and turns around.
He said a detailed presentation would be made to them on Air India's problems and the plans to turn it around.
11/03/10 PTI/Economic Times

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For a pie in the sky

The days of bruising price wars in the airline business are over; low-cost airlines are now trying to differentiate themselves on service offerings.
Taking a dig at each other is not new to this industry and began with Kingfisher Airlines' ad campaigns targeted at Jet Airways in 2007 and 2008.
The country's two major private carriers were going the Pepsi-Coke way. The competition was no longer restricted to achieving higher passenger loads but had moved to grabbing eyeballs.
However, the crash of Lehman Brothers in the latter half of 2008 and the global economic crises that followed broke the back of the global aviation industry, and India was no different.
During the slowdown, “Cost-cutting and ‘managing' in the downturn was the dominant sentiment,” said Mudra Connext's Executive Vice-President, Manas Mishra, in response to an e-mail question. Mudra Connext is the media arm of Mudra Group.
And now, with everyone talking of an economic recovery and the return of good times, will one witness a ‘war of words' or ‘price wars' being played out in the marketing domain again?
“Lessons have been learnt (by the airlines). (It is) unlikely (that) we'll see airlines behaving like the soft drink and mobile phone service categories,” said MediaVest Worldwide's India-West, General Manager, Dinesh Rathore, in response to an e-mail question.
According to Mishra of Mudra Connext, “Airlines are not focused on lower fares. They are back to focusing on customer service instead of cost-cutting (for example, questioning the rule of ‘no meals on economy airlines'). They surely want to invest in brand building — especially the ones that have weathered the storm well. SpiceJet is a good example … they have a TV campaign running now.”
11/03/10 Shubhra Tandon/Business Line

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New pricing norms could favour airlines

Mumbai: In a move that could potentially change the way airport charges are levied in India and benefit airlines as well as passengers, the newly formed tariff regulator Airports Economic Regulatory Authority of India (Aera) said the so-called single-till model is the most appropriate way to decide such charges in India.
Private airport operators continue to battle for the double-till model.
In the single-till model, followed by UK airports such as Heathrow and Gatwick, all principal airport activities including aeronautical and commercial (or retail) are taken into account to determine the level of airport charges. In contrast, only aeronautical or flying-related activities are considered under the dual-till principle.
Airlines prefer the single-till model as airport charges are likely to be lower under it.
However, private airport operators and their investors are keen to have charges decided on the basis of a double-till model because this will help them increase revenue. Currently, most Indian airports do not earn significant commercial income.
10/03/10 P.R. Sanjai/Live Mint

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Sky marshals demand star treatment, threaten to quit

New Delhi: Sky marshals, national security guards on board a flight to encounter any terror threat, have threatened to stop flying on
Mumbai-Kathmandu sector complaining of insufficient food and lodging arrangements by airlines, as per an official letter a copy of which is with ET.
The civil aviation ministry has written to all the carriers flying on the Saarc (South Asian Association for Regional Co-operation) sector to treat flying commandos at par with their crew members.
“Providing accommodation to sky marshals is not binding on airlines. However, we have asked carriers to treat on-board guards at par with the crew members,” a senior aviation ministry official, who did not wish to be quoted, said. Following an intelligence input that Pakistan-based terror groups were planning to hijack an Indian flight, the government had put flights to neighbouring countries, such as Nepal, Bangladesh and Sri Lanka, on high alert. It directed all carriers, especially Air India, to take extra security measures besides asking the Bureau of Civil Aviation Security (BCAS) to deploy sky marshals on aircraft operating in the region. A person familiar with the development said that sky marshals were asking for five-star accommodation which airlines have refused. National carrier Air India and Jet Airways operate direct flights to Kathmandu.
10/03/10 Nirbhay Kumar/Economic Times

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Airlines say no to costly snoop tech

New Delhi: Eyehole versus CCTV is an age-old debate in most middle-class Indian families who want to secure their homes but are discouraged from going hi-tech because of massive difference in prices of these two devices.
Now, the same debate is raging in Indian skies, with some cash-strapped airlines not following the mandatory safety rule of having CCTVs on cockpit door so that pilots can see the area in front of the alley from their seats. Instead, airlines are warming up to eyeholes for aircraft cockpit doors, called P-Holes in aviation parlance, that can do the same job as an expensive CCTV!
But following recent hijack alerts and constant intelligence inputs on threats to airlines, the Directorate General of Civil Aviation (DGCA) is now insisting that all Indian passenger aircraft have the vital "cockpit door surveillance system" installed. This system allows pilots to keep an eye on the cabin area in front of the door, and most importantly, identify the person who knocks at the cockpit door.
Airlines, said sources, have told DGCA that the installing the cockpit door surveillance system in each aircraft costs upwards of $50,000. ".. A special drive is being launched and we will identify which all aircraft don't have this system. They will be given some time to report compliance or face strict action," said an official.
10/03/10 Saurabh Sinha/Times of India

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India air cargo still suffering due to lack of infrastructure

Despite expectations of air freight growing 20 per cent in India by 2012, Air India, Kingfisher Xpress and Jet Airways say the business is stalled by a lack of infrastructure and industrial know-how.
Ernst and Young partner Sushi Shyamal said that moves towards ground handling will bring in revenue, but what India needs more is the creation of warehousing and multi-modal links at local level, reports the Hindu's Business Line supplement. The sector also needs "an integrated logistics approach that covers the first mile and last mile connectivity," he said.
Air India's cargo chief Anita Khuran agreed that his division only accounts for five to 10 per cent of revenue and with most capacity in passenger bellyholds and not with its 20 all cargo freighters.
09/03/10 SupplyChain

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India hosts first aviation law moot; NLU beat Nalsar in Amity Moot

India has the distinct honour of playing host to the world’s first aviation law moot. The moot was organised jointly by the Sarin Memorial Legal Aid Foundation with the International Institute of Air and Space Law, Leiden University (IIASL) at the Dutch Embassy in New Delhi.
The Sarin-Leiden moot, held between March 2 and 6 saw the Leiden University team comprising Mildred Trogeler, Tridev Budia and Michel Adam, emerge eventual winners from a pool of 11 teams. McGill University, Canada stood runner-ups while National Law University, Delhi stood third in the overall standings. Following them were Bangalore’s Christ University and Gujarat National Law University, Gandhinagar. The 5 Indian universities that participated were earlier selected from a national level moot which saw 9 teams competing.
The moot is a brainchild of Chandigarh based Nitin Sarin, a lawyer and son of Senior Counsel, M.L. Sarin. Nitin completed his masters in the Air & Space law program offered by IIASL in 2009.
Bangalore based Christ University’s Anu Lisa Jose won the best oralist award. Hardeep Singh, a 2nd year student from National Law University, Delhi was awarded the scholarship for an LL.M in Air & Space Law from IIASL for having presented the best oral arguments. This scholarship is awarded to a student from the host country.
10/03/10 Bar & Bench

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IGT Ranked among World’s Best for Second Consecutive Year

Gurgaon: InterGlobe Technologies (IGT), a leading travel services organization providing information technology and business process outsourcing solutions to leading travel and transportation corporations worldwide, is excited to announce it is successfully ranked among the world’s best in The Global Outsourcing 100® for the second consecutive year.
The Global Outsourcing 100®, a prestigious ranking compiled by the International Association of Outsourcing Professionals® (IAOP®), will be published in the May 3, 2010 issue of FORTUNE® Magazine in a special advertising sponsored by the IAOP.
“We take great pride in being ranked among the world’s best by the IAOP. If it were not for the commitment of our valued customers and the relentless passion of the entire global IGT team, this esteemed accomplishment would not have been possible.” said Vipul Doshi, CEO of IGT. “The cornerstone of our business is to deliver high quality services at a quantifiable value to our customers and this recognition is a testament to our commitment to customer excellence. We look forward to replicating this success and continuing to raise the bar in years to come.”
"Being named to The Global Outsourcing 100 is a great recognition, particularly given the strong competition, and these companies should be proud of achieving excellence in outsourcing. As the economy recovers, partnering with the world’s best outsourcing providers and advisors will be more important than ever," said IAOP Chairman Michael Corbett and chair of the judges’ panel. "The Global Outsourcing 100 help companies easily identify those partners that will help them emerge as leaders."
Each year the competition to be named to the top 100 companies continues to reach higher levels, as the outsourcing industry continues to grow and mature in many markets. This year, the judges evaluated the most diverse set of applicants we’ve ever had, with ongoing strong interest from Asia-Pacific and Europe,” said Jagdish Dalal, Managing Director, Thought Leadership, IAOP and chairman of the judges' panel.
"The Global Outsourcing 100 program continues to grow each year in importance and has become the go-to resource for the industry," said Deborah Hamill, senior managing director global membership of IAOP.
 InterGlobe Technologies was selected after a rigorous application process and comprehensive review by a distinguished panel of independent judges. The ranking was determined by weighted averages based on each candidate's core competencies, size and growth, management capabilities and most importantly, customer recommendations and references. 
Interglobe Technologies was also listed in the Global Outsourcing 100® list in the year 2009.
09/03/10 PRESS RELEASE/InterGlobe Technologies

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'Pilots must also switch off cells'

New Delhi: From now on, passengers won't be the only ones expected to switch off their mobile phones when an aircraft door shuts for take off. The government is making it mandatory for pilots in cockpits also to do the same in a bid to ensure their attention is fully on safe take off and not diverted by talking on phone.
"This can be a big safety hazard. The probe report of last year plane crash in Buffalo, US, has revealed that both the pilot and the co-pilot were talking on phone till late in take off stage. This is a common practice in India also and we are issuing a circular to curb this," said a senior Directorate General of Civil Aviation (DGCA) official. Pilots will, however, be allowed to use phones in emergency situation like aircraft communication system failing on ground.
The regulator has made plans to implement this new safety rule strictly. Since pilots are in command of flight and cabin crew members — who ensure passengers switch off their phones inflight — may not report against the pilots, it has found a novel way. Cockpit voice recorders will be checked on a random basis to detect this. We also have a system where airline crew can give anonymous information," said the official.
09/03/10 Saurabh Sinha/Times of India

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First independent MRO unit in India shelved

Hyderabad: It was to be India’s first independent aircraft maintenance and repair facility. But a year after the foundation stone was laid, the investors have backed out and the company has been shut.
Duke Aviation Engineering Pvt. Ltd had planned to set up a maintenance, repair and overhaul (MRO) unit in a special economic zone, or SEZ, in Nagpur run by Maharashtra Airport Development Co. Ltd, with an investment of $150 million (around Rs681 crore).
Ajith Karnik, who was a promoter and chief executive of Duke Aviation, said the project had to be shelved as the investors had backed out. “We would be reviving the project in a different name and different set of investors,” he said.
Duke Aviation was promoted by Karnik and Dubai-based Duke Equity Ltd, whose managing partner Gopal Patwardhan said now is not “the right time for civil aviation. We will be reviving the project after 18 months”.
Interest in the MRO business gained momentum during the Indian aviation industry’s boom years from 2004 to 2007, when domestic carriers decidin generaed to buy a total of around 500 planes over a five-year period, making the business a natural draw as maintenance accounts for around 13% of an airline’s operating cost.
But with the downturn and the scaling down of aircraft orders, prospects for MRO operators also appeared less rosy.
08/03/10 P.R. Sanjai/Live Mint

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India unveils details of indigenous 70-seat turboprop

India has adopted a turboprop design for its first indigenous regional aircraft and has released preliminary specifications for the planned 70-seater.
National Aerospace Laboratories is looking for foreign partners for the Regional Transport Aircraft RTA-70 and hopes to secure additional government funding later this year.
NAL officials say that they plan to design the RTA-70 with the Indian market in mind, adding that existing turboprops do not meet those requirements. These include improved fuel efficiency, short landing and take-off capability, and the ability to transport cargo.
This will give the aircraft 25% lower acquisition costs, 25% lower operating costs and 50% lower maintenance costs than existing turboprop regional aircraft, says NAL.
"Many towns and cities remain unconnected due to the cost of operations. Short take-off and landing abilities, capability to land on ill-equipped airfields, including all weather operations, can be of very high benefit," NAL says in its RTA-70 brochure.
NAL is eyeing a composite airframe. The aircraft will be powered by two "next-generation turboprop engines", it adds. It would have a fly-by-wire control system, open distributed modular avionics, automatic dependence surveillance - broadcast navigation capabilities, and advanced displays.
06/03/10 Siva Govindasamy/Flightglobal

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Separate Flight Corridors for Helicopters at Delhi and Mumbai

The Directorate General of Civil Aviation (DGCA) has decided to introduce separate Visual Flight Route (VFR) corridors at the Delhi and Mumbai Airports to ensure safe and efficient operations of Helicopters and also to meet long pending demands of the Helicopter Industry.
A large number of Helicopters operate within the Control Zone of Chattrapati Shivaji International Airport, Mumbai and Indira Gandhi International Airport, New Delhi and also from Juhu Airfield which lies within the Control zone of Mumbai - for oil exploration, tourism and corporate and business purposes. The Helicopter operations get delayed due to Air Traffic Congestion at these International Airports.  Therefore, the decision to introduce Helicopters Flying Corridors within Mumbai and Delhi Control Zone for Visual Flight Rules  (VFR) Routings.
Also keeping in view the short endurance of Helicopters, promotion of the Industry and for Safe Operations, the need was felt to introduce VFR Routings which was also recommended by KAW Committee.
For this purpose, the DGCA had asked the Airports Authority of India (AAI) to design the Visual Flight Rules (VFR) Helicopter Routings. Suggestions were invited from all Helicopter Operators. Various meetings were held at Bombay and Delhi between Helicopter Operators, AAI and DGCA to discuss the routings.  The suggestions were considered and the routes were modified to facilitate the Operations and at the same time ensuring that Air Safety is not compromised at any stage.
09/03/10 PRESS RELEASE/Press Information Bureau

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IGT selected by LodgeX to build a New Reservation Management Technology Platform

New Delhi: InterGlobe Technologies (IGT), a leading travel services organization providing information technology and business process outsourcing solutions to travel and transportation corporations worldwide, has signed a software development agreement with LodgeX, a division of LJK Companies Inc., and a Minneapolis-based provider of accommodations management software solutions and support services.
Under the terms of the agreement, IGT will develop a web-based, end-to-end lodging services and reservation management platform which will comprise a comprehensive and adaptable set of functional modules to provide LodgeX and their business users a highly flexible and forward-looking solution covering all aspects of LodgeX’s business.
Mr. Vipul Doshi, CEO, InterGlobe Technologies said, “We are delighted to be selected by LodgeX to build their new reservations management platform. This further confirms IGT’s position as the global leader in developing high quality, domain-specific solutions for our travel industry customers.”
Speaking on the relationship, Mr. Rob Miller, VP-Sales and Marketing at LodgeX said, “Lodgex is pleased to have selected a technology partner that has its roots in the travel industry and intimately understands the world we and our clients operate in.  We are excited about delivering a new software platform designed to provide significant enhancements for our current clients and propel us toward future growth.”
06/03/10 PRESS RELEASE/InterGlobe Technologies

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'Worst is over for Indian airlines'

All discussions on the Indian airline industry since 2008 have been hovering around mounting losses, downsizing, aircraft delivery postponement,
Kiran Rao, President, Airbus India
cost-cutting and capacity rationalisation losses. The turbulence is finally behind us and the buzz on expansion, hiring and new aircraft orders is in the air, feels Kiran Rao, president of Airbus India and executive vice-president in charge of sales and marketing at the parent company. His logic behind the turnaround?
The language of customers has changed. No more are they talking about postponing aircraft deliveries or leasing out aeroplanes. Instead, they are talking about traffic coming back and the need to advance deliveries of planes. There is some overcapacity left in certain segments, but aircraft cannot be delivered overnight.
If an aircraft is ordered today, it takes 2-3 years for it to be delivered. Airlines understand this time-cycle and, hence, they are working ahead. In the case of Airbus A350, which is the most modern wide-body aircraft that is about to go into production now, the wait could be as long as five years.
The view at Airbus is that the Indian airline companies have recovered from the global slowdown and the industry will experience rapid growth in the next 4-5 years. Mr Rao cites steady improvement in load factor as a key indicator.
“In the past six months, we have seen load factors increase and yields improve. With a little more improvement in yields, there will be a strong and vibrant airline industry in the country,” Mr Rao says.
06/03/10 Economic Times

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Zicom sells core business, to focus on energy, aviation

Mumbai: Mumbai-based Zicom Electronic Security Systems Ltd has sold its core business to French company Schneider Electric SA for Rs225 crore in a all-cash deal.
The company will use the money to repay the Rs90 crore debt on its books and diversify into new businesses such as renewable energy and aviation engineering, said founder and chairman Manohar Bidaye.
Zicom’s main business relates to integrated security solutions such as closed-circuit television surveillance, access control cards and alarm systems, contributing 52% of the company’s Rs375 crore revenue and 48% of profit in the nine months ended December 2009. Zicom decided to exit the business as increased demand from large hotels, government installations and office buildings called for a high degree of sophistication.
Zicom will continue to sell home security equipment and provide technology to smaller offices through its retail arm. Besides, the company has also retained its fire safety business in Dubai known as Unisafe Fire Protection Specialist Llc.
05/03/10 Joel Rebello/Live Mint

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Aviation opportunities in the air in Bangalore, Hyderabad

Bangalore, the joke goes, is the only place where Boeing ranks above Airbus—because the former’s office is situated one floor above the latter’s in
the spanking new glass building on the Old Madras Road. While it’s not too hard to guess where the joke originated from, on the ground, the competition to be the number one supplier to Indian carriers is quite intense, with Airbus currently in the lead.
If the turf war for the skies is heating up, then Bangalore is the battlefield royale. The city’s rapid emergence as a centre for aviation and aerospace technologies can be attributed not only to the large number of scientific organisations and educational institutes in the city, but also its IT horsepower that is acting as the wind beneath the wings of aviation giants.
Airbus, for example, has had an engineering centre in Bangalore since October 2007. Its engineers, hired from some of India’s top engineering schools, are working on cutting-edge technology that would give Airbus a decisive advantage in the air. The current strength of the centre is around 120, but will grow to 400 people soon.
Boeing, not to be left behind, has set up an research and technology (R&T) centre in Bangalore, which now coordinates the work of more than 1,500 engineers working on projects across various vendors such as Infosys, HCL, TCS and Wipro.
India is the fastest growing market for Airbus, with 68% of its future plane orders coming from this country. Airbus, whose best-known recent models include the double-decker A380, and the forthcoming A350 XWB, is geared up to challenge the Boeing Dreamliner.
06/03/10 Anirvan Ghosh/Economic Times

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Airlines may pass burden on to passenger with fare hike

Hyderabad: The imposition of 10 per cent service tax on the airline industry coupled with the 5 per cent customs duty on crude oil in Union Budget 2010-11 may force domestic airlines to raise fares soon.
On the sidelines of Day 1 of India Aviation 2010 — jointly organised by Ficci and the civil aviation ministry — honchos of the airline industry came together to discuss the recent Budget implications. Fares, which have seen a relatively stable run so far, might be revised soon. On the issue of fare hike, Kingfisher Airlines chairman Vijay Mallya said, “It would be difficult to determine the exact quantum of fare hike. Next week, the picture will be clearer after we review the fares.”
While India’s largest private carrier Jet Airways echoed similar views, the airline denied that the issue of fare hike was discussed at the meeting under the banner of the Federation of Indian Airlines today. “We didn’t discuss fares at the meeting. However, we discussed the problems of service industry with the minister,” said Jet Airways chairman Naresh Goyal.
Airlines requested civil aviation minister Praful Patel to take up the issue with the finance ministry for withdrawal of the service tax and 5 per cent customs duty, which the minister said would be taken up soon.
04/03/10 Smita Aggarwal/Indian Express

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Patel seeks rollback of service tax on domestic air travel

The Ministry of Civil Aviation will seek a complete rollback of service tax levied on domestic air travel in the recent Budget, Civil Aviation Minister Praful Patel said today.
In his Budget speech on February 26, Finance Minister Pranab Mukherjee had proposed a service tax of 10 per cent on both domestic and international travel. Earlier, the service tax was restricted only for international travel.
“We are looking into this issue seriously and will request the finance ministry to roll back the service tax. We are hopeful that the latter would respond favourably to our request,” Patel said at a press conference at the five-day India Aviation 2010 that kicked off here today.
Replying to a query on security issues in the aviation sector, the civil aviation minister said the job was not over by creating infrastructure for the aviation industry. “The country needs safe and secure aviation. Indian aviation will not grow at the cost of safety and security,” he said. Patel said the ministry was working on introducing full-body scanners at all airports in the country.
04/03/10 Business Standard

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