Independent body to be set-up to deal with aviation safety

New Delhi: In order to ensure better regulation over aviation safety and security, an independent Civil Aviation Authority (CAA) is on the anvil with the Civil Aviation Ministry finalising a draft legislation on the issue.
Once the draft is finalised, it would be circulated to other ministries for their inputs before it is placed before the Union Cabinet for approval. However, this process would take some time, official sources said.
The proposed CAA would have financial and administrative autonomy to take expeditious decisions on matters relating to a range of activities -- from regulation of air traffic services and licensing to ensure financial fitness of airlines, they said.
The CAA would come up at a time when the total number of planes in the country is about 440 and is estimated to cross 1,000 in a few years. In addition, over 200 helicopters and private jets are also flying in the country.
The passenger handling capacity of Indian airports, which was just 66 million in 2005, has reached 225 million now and is expected to cross 500 million in the next 10 years.
In this backdrop, the CAA would take over the responsibilities of the Directorate General of Civil Aviation (DGCA) like air safety, airspace regulation, setting aviation standards, licencing of airlines, pilots, air traffic controllers and engineers, besides consumer protection.
30/10/11 PTI/Daily News & Analysis

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Air carbon permit fight escalates

London: The battle against the European Union’s plans to charge the world’s biggest airlines for their carbon pollution is poised to escalate this week as the US, China and two dozen other countries take their case to the international body that sets global air standards
The 26 countries, including Russia, India and Japan, will tell the International Civil Aviation Organization (Icao) that the EU measure “violates the cardinal principle of state sovereignty” enshrined by international air agreements since the second world war.
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Their ?action paves the way for a rare formal dispute to be launched in Icao, United Nations agency headquartered in Montreal.
The EU’s inclusion of aviation in its six-year-old emissions trading scheme from January will “curb the sustainable growth of international aviation”, the 26 countries claim, in a paper prepared for a meeting of Icao’s governing council that starts on Monday.
That could also prompt other countries to introduce “competing schemes”, the countries say, “bringing about a chaotic situation adversely affecting the sustainability of air transport”.
One of the last big disputes before Icao was also over an EU environmental measure: a 1999 decision to clamp down on aircraft noise that the US said unfairly favoured European-built Airbus aircraft over older US Boeing jets.
While Icao cannot force the EU to ditch its plans, it can be used in order to apply further pressure to Brussels in regard to its boldest move to date to force countries outside Europe to abide by its carbon pollution rules.
30/10/11 Pilita Clark/Financial Times

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Beg, borrow, fly

The Government is feeling generous with our money: it is thinking of throwing away close to Rs 23,000 crore at Air India, mercifully over the next ten years. But, more sensibly, it is also examining a proposal to allow foreign airlines to acquire a stake in cash-strapped domestic carriers, most of which are losing money.
For those who are not aware, India has this extraordinary policy of allowing FDI in India's domestic airlines but everyone and his dog can invest, except foreign airlines. It is a bit like saying anyone can play for India's cricket team except cricketers.
There was a time when foreign airlines were allowed to invest in airlines in India. So Kuwait Airways and Gulf Air had a stake in Jet Airways. But because of some strong lobbying, the policy was changed. The stake held by the foreign airlines was then bought by Jet.
Today, those who lobbied against foreign airlines holding equity in Indian carriers want the law to be reversed.
India's three full service airlines — Air India, Jet Airways and Kingfisher — are all reeling under losses. Kingfisher's losses increased by over 40 per cent to touch Rs 263.54 crore during the first quarter of this fiscal, compared with losses of Rs 187.35 crore recorded during the corresponding quarter of last fiscal. Similarly, Jet Airways has also been in the red.
Getting a foreign airline in as a partner, albeit a junior one, could also provide benefits other than cash. The international airline could help its Indian partner cut costs and bring about greater efficiency in its operations. It could also provide the domestic airline access to its international partner's global network, bringing in more passengers, all of which would translate into a healthier balance sheet.
30/10/11 Ashwini Phadnis/Business Line

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UP's Chetak chopper up for sale

Lucknow: Chetak, the only reassembled chopper of the Uttar Pradesh government is up for sale. Apart from Chetak, three other turbo-propelled aircraft too have been put up for sale. Come Monday, and the department of civil aviation will be receiving bids as it sells off part of its prized fleet to bidders.
The three other aircraft include King Air C90A, Beech Bonanza A-36 and Super King Air 300 LW, all US-made.
"Grounded and lying in the state hangar since September 2009, Chetak has outlived its life span of around 3,200 flying hours. Reassembled in 1994, the chopper completed 15 years on September 10, 2009 and therefore needs to be sold off, say civil aviation officials. It was last flown on September 8, 2009.
31/10/11 Pankaj Shah/Times of India

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Cockfights in the cockpit

What makes the difference between life and death in the cockpit? Teamwork, besides technical competence, is the obvious answer. Just that sometimes the two don't come so beautifully together.
Recently, when an Air India co-pilot refused to fly with a commander, leaving 169 passengers in the lurch - even if it was at the behest of its union - it raised serious questions about pilots and their professionalism, and of course, the safety of passengers.
"Pilots come with different attitudes and temperaments," says an Air India commander. "There are ego issues, machismo, rudeness and age differences leading to communication problems."
Pilots still shake their head in amazement at an incident in 1988 when two senior Indian Airlines pilots were flying in a B737. The chill in the cockpit was such that when the commander forgot to put his landing gears down, the co-pilot kept mum. The plane landed on its belly in Kolkata, damaging it. Both pilots were taken off flying.
This extreme case of animosity is used as a cornerstone by airlines to show how lack of teamwork can endanger lives.
In fact, way back in 1979, Nasa identified deficient interpersonal communication as a causal factor in 70-80 % of accidents. That's when Cockpit and then Crew Resource Management (CRM) training began. It teaches crew about interpersonal skills; United Airlines was the first to implement it.
Co-pilots , says Capt Danny Desai, an examiner who worked in JetLite, were often left as unwanted entities on board before CRMs were introduced. "A good commander will rebuke his co-pilot in private unless there are extraordinary situations, but complement him in public. Don't break the young one down," he says. And that's why preflight briefings are so important - they're meant to break the ice. But that doesn't always happen.
"It has to do with our Asian culture where people don't speak up in front of a senior," says an insider. Once a pilot overshot the runway and the co-pilot remained mute.
"Sometimes the gradient of authority (age and knowledge difference between pilots) can be steep, causing the co-pilot to keep quiet," says a SpiceJet source.
Some say it is plain psychology. When the commander holds the key to a co-pilot's future, some prefer to err on the side of caution.
Airlines now allow changes in the roster if a pilot doesn't want to fly with another. In Air India, this is honoured; some 15% of pilots avail of this lenience . Even private airlines allow these concessions. At Indigo Airlines, says a source, CRMs are strictly followed and pilots can change their roster provided they give enough advance notice.
30/10/11 Shobha John/Times of India

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GCAA concludes successful participation at ICAN

The delegation of UAE General Civil Aviation Authority (GCAA) has successfully concluded its participation the International Civil Aviation Negotiation Conference (ICAN) which took place in Mumbai, India from 16 until 22 October 2011. Delegations from sixty-four States were present to negotiate and sign agreements related to civil aviation.
UAE's delegation was headed by H.E. Saif Mohammed Al Suwaidi, Director General of GCAA, Mr. Omar Bin Ghaleb, Deputy Director General, and Mrs. Laila Bin Hareb, Executive Director of Strategy and International Affairs. UAE's delegation was also composed of other representatives of the GCAA, Department of Transport of Abu Dhabi, Dubai Civil Aviation Authority, Department of Civil Aviation of Sharjah, Department of Civil Aviation of Ras Al Khaimah, Etihad Airways, Emirates Airline, Air Arabia, RAK Airways and flydubai.
ICAN is primarily designed to provide States with a central meeting place to conduct air services negotiations or consultations with their partners. Instead of having to travel to each individual bilateral partner State to conduct negotiations. Aviation negotiators attending this event are able to hold multiple negotiations with their counterparts at the same location, thus greatly improving the efficiency of the bilateral negotiation process and resulting in substantial savings of time and resources. The event also provides a forum for participants to learn about current trends and discuss topical issues and offers excellent networking opportunities as well. It is worth mentioning that Dubai hosted the first ICAN conference back in 2008.
29/10/11 AMEinfo.com

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Indian aerobatics team to get Hawks

New Delhi: India's national Surya Kiran Aerobatics Team will be flying Hawks although the switch to the new planes may not be occur until 2016, a report in the Business Standard said.

The Hawks, to be built in India, will replace the Kiran Mark II trainers that SKAT has flown since 1996. The Kiran, originally powered by a Rolls-Royce Viper Mk II engine, was flown for the first time in 1964.

The Mark II was a more powerful version powered by a Bristol Siddeley Orpheus engine and had improved weapon-carrying capability. It first flew in 1976 and entered service in 1985. Production ended in 1989 after 61 were built.

The Indian air force has initiated procurement of 21 Hawk aircraft for its SKAT unit, built by Hindustan Aeronautics Limited in Bangalore, the Business Standard said.

28/10/11 UPI.com

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The penny-pinching airlines

New Delhi: Amid surging oil prices and depreciating rupee, Indian carriers are becoming frugal.
Chief financial officers neither let an opportunity to save nor leave waste on the table in budget meetings. But when a top airline chief executive recently started signing nearly half the cheques issued by his company, he had no doubts about the CFO’s ability or integrity. In fact, he was trying to evaluate every area of operations, however small, questioning every aspect of the established procedures and looking for better and more efficient ways of doing things — with an eye on minimising costs.
With fuel bill accounting for 50 per cent of operating cost, and lease rentals and staff cost making up another 20 per cent, struggling Indian airlines like SpiceJet, Kingfisher and Jet Airways are left with little choice but to pinch every penny to somehow keep business solvent, even as they await policy clearance that may allow foreign airlines to pick up stake and inject the much needed cash.
SpiceJet and Jet Airways, which reported profits in the first quarter of 2010-11, posted losses of Rs 72 crore and Rs 123 crore, respectively, during the same period this financial year. Kingfisher Airlines’ losses in the first quarter of this financial year widened to Rs 263.5 crore, from Rs 187 crore. However, IndiGo ended the last financial year with a profit of Rs 650 crore.
Amid surging oil prices, depreciating rupee, cut-throat competition, threats of another slowdown, these airlines are combing through every little nook and cranny to cut fat and maximise ancillary revenue — starting from reducing quantities of brochures printed and doing away with disposable coffee cups to taking the green routes to save aviation turbine fuel and generating revenue from advertisements on boarding passes, baggage tags and on in-flight entertainment channels, and fees from excess baggage.
27/10/11 Mihir Mishra/Business Standard

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Chopper straying case, Indian Army checking GPS records

New Delhi: Ending the controversy that Pakistan-Administration Kashmir (PAK) officers from the Global Positioning System (GPS) have downloaded vital information, Indian Army today said that it is screening the records of GPS device on board the chopper to find how it strayed into PAK territory across the Line of Control (LoC) on Sunday.
“Along with debriefing the four-member crew of the Cheetah, we are also checking the records of the GPS to get a clear picture about how the chopper strayed from its route and how the two pilots could not determine their exact location,” sources said here.
They said the GPS device will help in finding the exact route taken by the Cheetah helicopter to reach the Olding base in Skardu under Pakistan, where it landed on Sunday. The chopper belonging to the 666 Siachen Phalcon Unit, flying from Leh to Bhimbhat in Jammu and Kashmir, went across the Line of Control at around 1.20 PM following bad weather.
But soon after the landing, the pilots and two other personnel of the Indian Army realised that the helipad was not in the Indian territory but in PAK Northern areas.
Sources said that the "debriefing" of the four crew members was going on and they denied that any secret information was accessed from the GPS device. As far as the call signs and codes are concerned, they are changed on a frequent basis and can't be of much help for any adversary, they said on reports that the Pakistan army has got access to the call signs and codes.
26/10/11 KashmirWatch.com

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IAF selects Boeing's Apache Longbow combat helicopter for chopper tender

New Delhi: The Indian Air Force (IAF) has selected Boeing's Apache Longbow advanced attack helicopter for its combat chopper tender.
RIA Novosti news agency reported from Moscow Tuesday that the other competitor, Russia's Mi-28N Night Hunter, had lost the competition.
It quoted an unnamed Indian defence ministry source as saying that the US helicopter "showed better performance" while the Russian machine did not meet the tender requirements.
There was no confirmation here but well placed sources told India Strategic defence magazine that IAF's assessment report had been accepted. No details were given.
IAF has a tender for 22 combat helicopters with no options. But more would be required and should be ordered once the first few machines are delivered.
26/10/11 IANS/Economic Times

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Helicopter Symposium Offers Unique Global Perspective

Aviation authorities from more than a dozen countries from across the globe will offer their perspectives on safety at the Fifth Annual International Helicopter Safety Symposium, taking place in Fort Worth, Texas from Nov. 8-9, 2011. The theme of the symposium will be Human Factors: our Collective Challenge – Our Individual Responsibility.
The event is a gathering of helicopter operators, manufacturers, service providers, trade associations, academia, government regulators, pilots, mechanics, instructors, and other industry participants from across the globe aimed at finding ways to drive the helicopter accident rate lower. Organizations involved in the symposium also are members of the International Helicopter Safety Team, which was created in 2005 with a mission of reducing the worldwide civil helicopter accident rate by 80 percent by 2016.
This two-day event will include discussions about helicopter safety and operations in numerous countries and regions, including: Europe, the Persian Gulf, Australia, Brazil, Canada, India, Japan, Russia, and the United States.
26/10/11 Rotor.com

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‘Airlines may report 3,500 crore loss in first 6 months’

Mumbai: Domestic airlines in India are likely to report a loss of Rs 3,500 crore in the first six months of this financial year. The situation is so grave that some may default in servicing their debt, forcing their closure. The warning came in a letter sent last week by the Federation of Indian Airlines (FIA), a body representing Indian carriers to the secretary, ministry of civil aviation.
Urging the government to take 'immediate, effective and comprehensive measures' to protect the health of the airline industry in the country, the October 18 letter sent by FIA secretary general Anil Baijal said that besides rationalising ATF and other taxes and levies, it is critical to establish appropriate regulatory mechanism that would prevent malpractices like predatory pricing and capacity dumping in the market. "Indian carriers operate at cost levels that are probably the highest in the world," the FIA letter said adding that Aviation Turbine Fuel for domestic consumption is 50% higher than the global prices.
Despite all this, fares in India have been the lowest in the world when compared to other mature countries, it argued. "Domestic fares in India are currently as low as one-third of what airlines charge in other countries over similar distances," said the FIA letter furnishing a comparison of fares in different countries.
26/10/11 Manju V/Times of India

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India Likely To Open MMRCA Bids On Nov. 4

New Delhi: ndia is likely to open the commercial bids of the two shortlisted vendors for the medium multi-role combat aircraft (MMRCA) in the first week of November.
A Defense Ministry official said the vendors – French Rafale International and European consortium Cassidian Eurofighter – will be invited to witness the opening of their bids on Nov. 4.
Meanwhile, reports quoting industry sources said the shortlisted vendors have received a letter from the ministry and told the date on which the commercial bids for procuring 126 fighter jets will be opened.
The lowest bid in the tender may become the winner. However, the associated costs in terms of spares and support over two years, as well as for maintaining the aircraft over a lifetime of 6,000 hr. of flying or 40 years, will also be considered.
25/10/11 Aviation Week

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No extra fee on second check-in bag for US-bound passengers, says DGCA

New Delhi: In a first action of its kind, the government has cracked the whip on foreign airlines charging obscenely high amounts from US-bound passengers for checking in more than one bag.

Till recently, US-bound economy class passengers were allowed to check in two bags of up to 23kg each. But last year, US airlines started charging for the second bag, a practice picked up by European carriers as well, as a result of which passengers ended up paying anywhere from Rs 4,000 to Rs 20,000 extra for a one-way passage.

The Directorate General of Civil Aviation (DGCA) has asked the US and European airlines to revert to the old practice of allowing two bags with weight limit and the latter have to reply by month-end. "This anti-passenger policy of some airlines will not be allowed to continue. The matter is being taken up under the existing air service agreements India has with countries (whose airlines have started levying the fee)," DGCA chief Bharat Bhushan said. Indian carriers flying to North America still allow two check-in bags.

The DGCA has received several complaints on this front due to the enormity of the fee. For instance, a leading European airline allows economy passengers to check-in one bag of up to 23kg. It charges 150 euros for the second bag for each flight. Which means, a person travelling from Delhi to New York has to pay 300 euros (Rs 19,500) for checking in a second bag to NY. A return trip with two check-in bags will cost double the amount - almost the price of the ticket itself.

25/10/11 Saurabh Sinha/Times of India

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River & weather play tricks with copter

New Delhi: Stunned soldiers perched on a mountain-top post on the Line of Control watched nonplussed as one of their helicopters flew over them and into Pakistani territory on Sunday an hour after noon.

The chopper from the Army Aviation Corp’s 666 Siachen Falcons squadron was returned to Kargil in India five hours later, much to the relief of New Delhi and Islamabad, neither of whom want to precipitate a military crisis at this time.

But the incident has led to long faces in the Indian Army and security establishment and there is a sense of wonderment over how the two sides managed to prevent the incident from snowballing despite the sensitive region in which it occurred.

Pakistan especially would be touchy about aerial intrusions, particularly after the American raid that took out Osama bin Laden in Abbottabad in May this year.

In India, the army aviation wing is already talking about the poor navigational aids that they have to operate with in some of the harshest terrains in the world.

The Indian soldiers — Lt Colonel S.P. Verma (engineer officer), Majors R.G. Raja and G. Kapila (pilots), and Subedar Adhilesh Sharma (assistant to the engineer officer) — were debriefed by superiors last night and today. They were trying to determine how the Cheetah helicopter went across.

25/10/11 Sujan Dutta/The Telegraph

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Copter straying an ‘error of judgement’

A day after a Cheetah helicopter strayed into Pakistan occupied Kashmir, Indian army on Monday launched a preliminary probe into the incident and multiple agencies began debriefing of all the four crew members aboard the chopper.

“It was not an error of intention, but an error of judgement. Probe has been initiated to establish the exact reason behind the error on the part of the pilot. The crew is being de-briefed at Kargil base camp. We were told by the crew that they were treated well in PoK,” said an army official. De-briefing is a routine exercise which involves multiple agencies including intelligence agencies questioning the armymen after a mission.

Two Army Aviation Corps pilots Major RG Raja and G Kapila, ferrying an engineer Lt Col SP Verma and a JCO Subedar Akhilesh Sharma, had taken off from Leh to repair a technical snag in another Cheetah grounded in Bhimbat in Drass sector.

25/10/11 Daily News and Analysis

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Kiran Bedi overcharged us for travel, says NGO

A non-profit organisation in Mumbai has accused Team Anna member Kiran Bedi of claiming travel expenses far in excess of what she actually incurred to attend a programme organised by them in 2009.

George Abraham, general secretary of the Aviation Industry Employees Guild, said his organisation had invited Ms. Bedi to be chief guest for an International Women's Day function in Mumbai in March 2009 and that she had accepted the invitation.

But she over-invoiced the Guild for her travel expenses, Mr. Abraham told The Hindu on Monday. He added that his organisation realised they had been given a false invoice only after The Indian Express published a story accusing Ms. Bedi of discrepancies in her travel accounts.

Asked by The Hindu for a response, Ms. Bedi — who in the past has said that that all money raised this way was for her NGO — did not deny the over-invoicing. But she questioned the motives of the Guild in raising the issue and asked, “Since when did saving become a crime?”

According to Mr. Abraham, her travel agent, Flywell, had sent the Guild an invoice for Rs. 31,578 for a return ticket to Delhi by Indian Airlines. The travel was by executive class and the Guild sent a cheque for that amount.

However after The Indian Express news story, the Guild checked its old records and found a message giving the travel details of Ms. Bedi for that trip. A message they found in the files said she was arriving by a Jet airways flight from Pune.

25/10/11 The Hindu

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Hosts say were told Bedi flies only Business class

New Delhi: Some of the NGOs and institutions which sponsored trips of Kiran Bedi over the past two years say they were categorically told “she flies Business class” and were not aware if she travelled Economy. They added that they took her bills at “face value”.

“We were told that she only flies Business class. We had no idea she was availing Economy class tickets,” Irene Almeida, administrator of Mumbai-based Shri Mahila Griha Udyog Lijjat Papad, which hosted Bedi for a function on August 6, 2009, said.

About Bedi’s offer to return the money, Almeida said: “We have not been approached by any of her representatives willing to refund the amount to us.”

For the Lijjat Papad function, Bedi took an Indian Airlines flight (IC 165) to Mumbai from Delhi and returned the same day on IC 888. The total fare paid by her was Rs 8,689 but the bill submitted to the organisation was for Rs 32,495.

The payments for each of the flights Bedi took were made to her NGO India Vision Foundation (IVF).

25/10/11 Indian Express

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Aviation FDI may soon take wing

New Delhi: The proposal to allow foreign airlines to pick up stakes in domestic carriers may become a reality soon. The Department of Industrial Policy and Promotion (DIPP) under the commerce ministry has floated a draft cabinet note for inter-ministerial discussions on foreign direct investment (FDI) in aviation. It has received the civil aviation ministry’s nod to go ahead with the proposal.

After consultations within the ministries concerned, DIPP will put up the note for consideration by the Cabinet Committee on Economic Affairs (CCEA). Domestic airlines have not seen any fresh investment coming into the sector for a long time due to strict FDI rules.

DIPP has argued foreign airlines may be allowed to pick up 26 per cent stake. The civil aviation ministry asked for the cap to be 24 per cent or below. “Foreign airlines will not come if the cap is below 26 per cent as they will not be able to have their say in management matters. Private equity players are not interested anyway, as it is too uncertain a sector. The cap should be 26-49 per cent,” a senior DIPP official told Business Standard. The official said the note could be forwarded to the CCEA within a fortnight.

According to the present norms, 49 per cent FDI is allowed in airport infrastructure-related projects but there are restrictions on foreign investment in domestic airlines.

24/10/11 Nayanima Basu/Business Standard

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Lufthansa Technik scouting for Indian partner

Hamburg: Lufthanza Technik, the world's leading provider of technical support services for aircraft, is scouting for a local partner in India.

"We are working. Our strategy is to find a local partner in India. We are in negotiations," Julia Michaelis, the Spokesperson for Luthansa Technik, told a group of visiting journalists from London.

Lufthansa Technik, whose sister concern Lufthansa Airlines has code-sharing arrangement with Air India, has a unit in Delhi where its components are pooled.

It provides a full range of services from routine maintenance to a complete overhaul, and from the repair of a single defective component to managing the entire spare parts logistics chain.

According to Julia, Lufthanza Technik no longer relies exclusively on the experience it gains from maintaining the Lufthansa fleet to uphold its reputation for professional excellence.

23/10/11 ZeeNews.com

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Indian Army Chopper Strays Into Pak Airspace, Released

Islamabad/New Delhi: An Indian Army helicopter strayed into Pakistan-occupied Kashmir (PoK) today and was forced by Pakistani military to land and four onboard Army personnel taken into custody but the crisis was quickly defused and the chopper allowed to return to India.

Military and diplomatic channels of the two countries were activated and the Army Aviation Corp’s Cheetah helicoper with three middle-level officers and a JCO on board was released and returned safely back to Kargil just before sunset less than five hours after it inadvertently crossed the Line of Control(LoC) due to “inclement” weather.

A relieved India said it greatly appreciated the manner in which Pakistan worked with it in “resolving” the matter.

“We are relieved that our officers and helicopter are back in India. We greatly appreciate the manner in which Pakistan worked with us in resolving the matter,” Ministry of External Affairs said in New Delhi.

Pakistani Army said the chopper was “forced to land” in Olding sector near Skardu, about 20 km from the LoC, once it “violated” the airspace over their country and the four personnel were taken into “military custody” and questioned. They were later released.

Pakistan’s chief military spokesman Maj Gen Athar Abbas alleged that the Indian helicopter had intruded “deep” into Pakistani airspace but did not say how it was forced to land.

An Indian Army statement said the helicopter “inadvertently” crossed over into PoK in the Gultari sector, due to “inclement” weather.

The statement said the chopper was on a routine administration and maintenance flight moving from Leh to Bimbat in Drass sector to rectify another Cheetah helicopter which had landed there due to tehnical snag.

23/10/11 PTI/Indiatvnews.com

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Air fares to see 4-time surge in festive season

Lucknow: For an average flyer from Lucknow, a ticket to Delhi has been available in the in the range of Rs 1,500 to Rs 2,000. However, the cost of the same ticket is all set to escalate by four times, thanks to the festive season.

Not only Delhi, flying to other major destinations including Mumbai and Kolkata too is going to burn a deep hole in your pocket. Call it a fine business strategy balanced with the demand and supply, most of the airlines have decided to jack up air fares by next week.

Ironically, it was only a month ago that the Union civil aviation ministry had asked the directorate general of civil aviation (DGCA) to examine the issue and provide some relief to the passengers. The fare monitoring committee of the DGCA, set up a year ago, was already analysing the fare data on a daily basis.

Sources in the airline industry maintain that this is due to high passenger traffic. Also, the low-fare buckets were getting filled up swiftly, leaving only high fare options for the passengers.

"But at times there is a hype that causes a sudden rise in the prices and the airlines cash the opportunity. There are times when an earlier booked ticket come at a higher price than the one booked later," observed a Lucknow-based tour operator and travel agent, Prateek Hira. "The festive season does give airlines a bright opportunity to set their cash registers ringing," he said.

23/10/11 Times of India

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Air travel to become shorter, greener

Kolkata: Do you find it annoying to fly into Delhi and Mumbai where planes have to hover in the sky, waiting in a seemingly endless queue for touchdown? Ever wondered why this doesn't happen at London, Dubai, Frankfurt or Newark despite the airports catering to many more flights?
It's because flights to busy airports are required to calculate backwards to determine the takeoff time that will make the entire journey short. In contrast, domestic flights in India are happy taking off on time with no care in the world on the prolonged wait that may follow. Beyond mere inconvenience to passengers, it also entails wastage of aviation turbine fuel worth crores of rupees as planes hover in the air or wait in takeoff queue.
The Directorate General of Civil Aviation ( DGCA) seems to have finally woken up to the problem and is taking steps to address the situation that not only cuts down on flight time but also reduces fuel consumption, thereby cutting down on carbon emission.
"The Indian aviation industry has to adopt Air Traffic Flow Management (ATFM) to solve the gridlock in Mumbai and Delhi. A system should be in place within the next 12-18 months," Airports Authority of India general manager (air traffic management) Chandan Sen told TOI. There are two primary contenders for delivering the software that will integrate all the information-American NextGen and European SESAR.
"Once the system is in place, flight-related information will flow seamlessly across all stakeholders. There is requirement of collaborative decision-making between air traffic, airport managers and airlines to enable the system to function properly. After all the relevant information is fed into the system, it can determine what time passengers on a Kolkata-Mumbai flight should board the aircraft so that there is least amount of waiting time both for takeoff in Kolkata and for landing in Mumbai," Sen explained. This can lead to an annual saving of 6 million kg of ATF costing around Rs 40 crore and reduce carbon emission by 18 million kg.
22/10/11 Suhbro Niyogi/Times of India

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Business aircraft operators form association

Thirty-nine business aircraft operators, representing 65 percent of the country's fleet in this category, have formed an association to define standards for the sector and promote its growth, an official said in Mumbai on Friday.
"The Business Aircraft Operators' Association (BAOA) will be the industry's first recognised body and provide a platform to encourage close cooperation among the various stake holders in the aviation sector," said its first president Rohit Kapur.
BAOA comprises key members of Indian industry, private and commercial operators, airframe and engine manufacturers, Maintenance Repair & Overhaul (MROs) and other service providers.
Kapur said the business aviation industry is growing at an encouraging rate and India will be the third largest aviation market in the world by 2020.
"Considering the immense potential and with India slated to add more than a 1,000 aircraft over the next 10 years, there is a need for a body like BAOA," he said.
He said business aviation facilitates productivity and efficiency by saving time, enables access to areas with little or no airline services, reaches multiple destinations, serves industries like mining or oil and gas, and helps generate both revenue and employment in the economy.
22/10/11 SME Times

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Israeli Pilot retained first position on Day four of Para event

Dharmasala:Itay Takserman of Israel again made it to the first spot on Day four of the International, FAI (CAT II) and Himalayan National Paragliding Championship with Gurpreet Singh Dhindsa from India and Denis Velikov of Russia being on second and third place respectively as per the results declared Friday.
Dilip Kotecha and Raj Kumar were the two Indians who made their place in the first ten remaining on fourth and ninth position correspondingly. The foreign pilots were again successful in dominating the competition on Day four with three lady Para glider pilots Anna Darchenkova, Karina Sharipova from Russia and Daniela Mladenova from Bulgaria who figured in the list. The final ratings would be done on the last day of the competition after calculating the total scores of the pilots over the given five tasks till 22nd October, 2011.
“ As far as safety measures are concerned the Rescue and Retrieval by the organizers as what I have observed is second best in the world after Greece”, said Alexey Boldrev, a competitor from Russia.
There were safe landings of all the pilots at the end of the day.
Friday the windows opened at 12 noon and closed at 1.15 PM, with the task of covering air distance of 56.5 kilometers right from the take-off site to soar over Mihara village, Dam site, Utrala Train Station at Jogindernagar, Red roof temple to finally land at goal at Bir.
21/10/11 Bijender Sharma/PunjabNewsline.com

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BAOA sees 3-fold growth in Business Aviation by 2020

With an aim to define standards of Business Aviation in India and to promote its overall growth, the Business Aircraft operators today announced setting up a unified voice for the industry.

The Business Aircraft Operators’ Association (BAOA) will form the industry’s first recognized body and will provide a platform to encourage close cooperation amongst the various stake holders of the industry. The association headed by an Executive Board, includes 39 members who represent a majority 65% of the total fleet in general aviation in India today.

Introducing BAOA and its executive members, Rohit Kapur, President, BAOA, said “The business aviation industry is growing at an encouraging rate and India is all set to be the third largest aviation market by 2020. Considering the immense potential India has with more than 1000 aircrafts to be added over the next 10 years, there is an imminent need of a body that would aim to bring the fraternity into close cooperation for overall industry growth and mutual benefits. BAOA will act as a catalyst to unify the cornerstones of this growth and overcome the existing challenges the business aviation sector faces today.”

The nuances involved in Business Aviation makes it a tool that facilitates productivity and efficiency by saving time, as an enabler providing access to the areas with little or no airline service, reach to multiple destinations, and revenue and employment generator for the economy.

21/10/11 India Infoline

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GMR arm’s MRO facility at Rajiv Gandhi airport will be ready in Nov

Hyderabad: A Maintenance, Repair and Overhaul (MRO) facility being set up by an India-Malaysia joint venture at the Rajiv Gandhi International Airport, here will be ready in November.

The MAS-GMR Aerospace Engineering Company Ltd, a 50:50 joint venture between Malaysian Aerospace Engineering, a subsidiary of Malaysian Airline System Bhd, and GMR Hyderabad International Airport Ltd., a subsidiary of GMR infrastructure limited is implementing the project.

This joint venture is a third party Airframe maintenance, repair and overhaul located in the special economic Zone at the Airport. It has the capability to provide base maintenance services, starting with narrow bodied aircraft like Airbus A320, ATR 42/72 and Boeing 737-NG, and subsequently wide-body aircraft like A330 and Boeing 777.

21/10/11 Business Line

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Expedite Civilian Aircraft Project: Kalam

New Delhi: India should expedite its civilian aircraft project to enhance connectivity between smaller cities where airports are fit to operate a 100-seater plane, former President A P J Abdul Kalam said today.

"There are airports in Tier II and Tier III cities. To enhance connectivity, a 100-seater aircraft is fit to operate in these places. So India should expedite the civil aircraft project," Kalam said on the sidelines of an international seminar organised by the Air Traffic Controllers Guild here.

"I have asked the Civil Aviation Secretary (S N A Zaidi) to push the project," he said. Zaidi was also present on the occasion.

A 90-seater civilian plane to be produced indigenously is already on the drawing board and the project, costing Rs 5,000 crore, is being jointly developed by state-run bodies like NAL, HAL, ADA, DRDO and ISRO.

Kalam, who also felicitated six ATC officials for distinguished service, stressed that to make Indian skies more safer, air traffic controllers should be given simulator training to handle various types of exigencies.

21/10/11 PTI/Outlook

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Saab India Technology Centre opens in Hyderabad

Hyderabad: A technology centre to undertake research and development in aerospace, defence and urban innovation, including civil security, set up by Saab India Technologies Pvt. Ltd. in partnership with Mahindra Satyam was inaugurated in this growing IT hub Friday.

“The Saab India Technology Centre (SITC) will form a bridge between India and Sweden. The aim of the centre is to support the internal operational excellence and optimization initiatives within Saab, while also supporting Saab to expand in the Indian market,” a statement from the Swedish major said.

An initial base of 100 skilled Indian engineers to be inducted by the close of 2012 will form the backbone of the centre. The SITC is expected to increase its headcount to at least 300 over the next three years.

The primary areas of development will include software engineering, electronic engineering and mechanical engineering. The SITC envisages future development in the areas of signal processing and systems engineering, the statement said.

21/10/11 nvonews.com

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To cut losses, pvt airlines want AI to increase fares

New Delhi: Private airlines like Jet Airways and IndiGo want public sector carrier Air India to raise air fares to make up for their losses. The top executives of these private carriers last Saturday met the aviation ministry officials to discuss that the national carrier was selling tickets 15-20% lower than the operating cost forcing them also to offer seats at discount.

“Jet Airways has claimed that they were losing R5 crore a day due to lower airfare prevailing in the domestic market. IndiGo said their losses were to the tune of R1 crore a day,” a senior aviation ministry official told FE.

He however said that the ministry would not dictate as to how Air India should price their tickets since airlines are free to charge any fare depending upon their operating cost, return and the premium thereon.

20/10/11 Nirbhay Kumar/Financial Express

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Airlines want steps to check predatory pricing of tickets

New Delhi: Cash-strapped Indian carriers have sought a regulatory mechanism to prevent predatory pricing of air tickets and asked the government to rationalise taxes on jet fuel and other levies.

Maintaining that the cost levels of the Indian airlines were "probably the highest in the world", the Federation of Indian Airlines (FIA) said the price of aviation fuel for domestic use was 50 percent higher in India than global levels.

Besides, airport charges at privatised airports "continue to rise unabated", the interest costs were "highest in the world" and airspace congestion was forcing airlines to lose millions, it said.

In a letter to Civil Aviation Secretary Nasim Zaidi, the FIA, which represents all major Indian carriers including Air India, also referred to predatory pricing or the practice of selling a product or service at very low price to drive competitors out of the market or create barriers for the new entrants.

"It is critical to establish appropriate regulatory mechanism that would prevent malpractices like predatory pricing and capacity dumping in the market which could be detrimental to the interests of the industry as a whole," FIA Secretary General Anil Baijal said in the letter.

20/10/11 ZeeNews

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Overspending, apathetic attitude ails civil aviation industry: CAG

Mumbai: The three pillars of the country's civil aviation industry are in the dock after the Comptroller and Auditor General of India has put their performance under a microscope and questioned their abilities.

The Bureau of Civil Aviation Securities (BCAS), Directorate General of Civil Aviation (DGCA) and the Ministry of Civil Aviation (MOCA) are facing the heat after the CAG has raised several issues including the non-commencement of important projects and overspending on aircraft that lay unused.

The auditor in his report (copy available with MiD DAY), raised the issue of the apathetic attitude of BCAS officials and their failure to start the Civil Aviation Security Training Academy (CASTA), 13 years after it was proposed. The CASTA proposal was raised following the hijack of the Indian Airlines flight in 1993 and the proposal to start such an agency was passed in December 1996 with an allocation of Rs 16.87 crore. After a large discussion, the ministry had decided that the academy would be set up at Netaji Nagar in Delhi and Rs 2.65 crore was additionally released for the same. However, the proposal remained in limbo till 2005.

Similarly, the construction of the office of regional deputy commissioner of security (RDCOS) at Mumbai, which was approved by the ministry in 2003, did not commence till January 2010.

As CASTA never saw the day of light, the design was merged into the Indian Aviation Academy under the aegis of the National Institute of Aviation Management & Research Society.

20/10/11 Bipin Kumar Singh and Sanjay Pandey/MiD DAY

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Travel advisories make airlines, hotels see red

Mumbai: Travel advisories issued by the US, the UK, New Zealand, Canada and Australia late Tuesday night have dampened spirits in the Indian hotel and airline industries, which were expecting things would look up in the festive season.

The local consulates of these five countries have issued travel alerts to their citizens, cautioning them about terror strikes during Indian festivals and other peak holiday periods.

These alerts are not expected to be lifted before January. “The Department of State reminds US citizens of the continued possibility of terrorist attacks throughout India and urges citizens to pay particular attention to their personal security during the Indian holiday season, which includes Hindu, Islamic, and other religious and secular holidays between October and January,”said a statement from the US consulate.

The five countries together account for over 35 per cent of annual foreign tourist arrivals to India, of which the US share is over 16 per cent.

The Australian government advisory said “terrorist attacks could occur at any time anywhere in India with little or no warning". The cautious approach stems from the fact that India has been subjected to two high-intensity terror strikes already this year, where at least 37 people lost their lives. Further, Indian security agencies have issued terror warnings to busy airports, railway stations and tourist spots frequented by foreigners.

Observers said the development might lead to cancellations in the hotel and tourism industry.

20/10/11 Swaraj Baggonkar & Aneesh Phadnis/Business Standard

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India may drag EU to WTO over carbon tax on airlines

New Delhi: India may consider dragging European Union to the World Trade Organisation if the 27-nation bloc goes ahead with its contentious plan to impose carbon tax on non-EU airlines, sources said.

According to the EU plan, non-European airlines will have to pay a price for emission of carbon dioxide. From January 2012, airlines flying into or out of EU airports will have pay a tax to cover the Co2 emission they emit during the entire flights.

"We have opposed this. The move is against EU's international commitment in WTO. It will distort trade in goods. If the EU will not defer its plan, we may consider dragging them to WTO," an official said.

However, efforts will be made to resolve the issue by talking bilaterally to each of the EU members, he said.

Finance Minister Pranab Mukherjee also strongly opposed the EU plan while he was in Paris last week for the G20 meeting.

20/10/11 Press Trust of India/Business Standard

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Airlines press govt for using untapped bilateral rights

New Delhi: Indian airlines have urged the government to allow them to fly to several foreign cities by tapping unutilised bilateral rights, as they held discussions on the issue with their counterparts from 35 nations in Mumbai.

Top officials of Indian carriers recently made a strong plea for allowing them to use the slots in several overseas destinations which were not being operated by Air India.

However, rejecting the contention that private carriers were not being allowed to use such unutilised slots or flying rights, official sources here said while Air India itself may not be able to utilise the entire quota of bilateral air services rights, private carriers too were Indian carriers and there was no reason why they would not be allowed.

The sources said officials of the Indian airlines met Civil Aviation Minister Vayalar Ravi last week and briefed him on their concerns which also included high rates of taxation on jet fuel and other financial issues.

Meanwhile, officials of Indian carriers are holding discussions with their counterparts from 65 nations who are participating in the ongoing Fourth Air Services Negotiation Conference (ICAN/2011) of the International Civil Aviation Organisation (ICAO) in Mumbai.

A separate session is being held at this major event on bilateral air services negotiations between Indian and African carriers.

18/11/10 ZeeNews

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Airlines press govt for using untapped bilateral rights

New Delhi: Indian airlines have urged the government to allow them to fly to several foreign cities by tapping unutilised bilateral rights, as they held discussions on the issue with their counterparts from 35 nations in Mumbai.
Top officials of Indian carriers recently made a strong plea for allowing them to use the slots in several overseas destinations which were not being operated by Air India.
However, rejecting the contention that private carriers were not being allowed to use such unutilised slots or flying rights, official sources here said while Air India itself may not be able to utilise the entire quota of bilateral air services rights, private carriers too were Indian carriers and there was no reason why they would not be allowed.
The sources said officials of the Indian airlines met Civil Aviation Minister Vayalar Ravi last week and briefed him on their concerns which also included high rates of taxation on jet fuel and other financial issues.
Meanwhile, officials of Indian carriers are holding discussions with their counterparts from 65 nations who are participating in the ongoing Fourth Air Services Negotiation Conference (ICAN/2011) of the International Civil Aviation Organisation (ICAO) in Mumbai.
A separate session is being held at this major event on bilateral air services negotiations between Indian and African carriers.
The prime contention in these negotiations is on the grant of Fifth Freedom Rights to designated African and Indian carriers. Fifth Freedom means the right of an airline to fly to a second country and then onwards to a third one, carrying passengers from the second.
18/10/11 PTI/ZeeNews.com

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FDI in aviation under consideration: Ravi

Mumbai: Civil Aviation Minister Vayalar Ravi today said it is considering the recommendation of the Department of Industrial Policy & Promotion (DIPP) to allow foreign carriers to pick up stake in domestic airlines.
“Yes. It is true that we have not rejected DIPP’s recommendation (on allowing foreign airlines to invest in
domestic carriers). It is under our consideration,” Ravi told reporters on the sidelines of the fourth International Civil Aviation Negotiation Conference 2011 (ICAN 2011) here.
However, the minister added that his ministry has not finalised its view on the DIPP proposal.
On the ailing national carrier, which is sitting on a debt pile of close to Rs 64,000 crore including accumulated losses, Ravi said that his first priority is to increase the cash flow of Air India which is struggling with interest payments and high aviation turbine fuel cost.
17/10/11 Firstpost.com

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Fall in biz confidence affects air travel in India: IATA

Fall in business confidence has affected air travel around the globe, including in India and China, which indicates further slowdown in passenger traffic in the months ahead, IATA said today.
Maintaining that the decline in business confidence has been "widespread" including in these two countries, the global airlines' body said "lower levels are consistent with the decline in international trade and business confidence" as seen in recent months which was now generating a fall in business travel.
"This weakness in a key driver of business travel is widespread, affecting even the Chinese and Indian economies" where the confidence has "fallen sharply in recent months", the International Air Transport Association (IATA) said in its latest analysis of premium air traffic for August.
It said the major source of weakness appeared to be Europe, where economic conditions and business confidence have "deteriorated sharply".
Aviation markets within Europe and the North Atlantic saw the sharpest falls in premium traffic in August, it said, adding there was "a sharp fall" in the number of passengers travelling on premium seats after an "unexpectedly robust growth" in the second quarter this year.
17/10/11 Moneycontrol.com

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President Pratibha Patil for expansion of aviation sector to further trade

Mumbai: Underlining the importance of aviation in economic development of countries, President Pratibha Patil on Monday sought "flexible business modules" for expansion of the aviation industry.
"Innovative and flexible business modules may be evolved, enabling greater connectivity between countries to promote people-to-people contacts, as well as trade and business.
"To achieve this, governments must continually negotiate new bilateral treaties, to allow for and expand access to new and emerging markets for their carriers," Patil said inaugurating the fourth International Civil Aviation Negotiation (ICAN) conference in Mumbai.
She said airlines could act as "goodwill ambassadors" to connect people across the globe.
"Flying is no longer the prerogative of a few privileged, but an option for an increasingly broader section of society. Airlines could be goodwill ambassadors to bring nations and peoples together," the President, who is on a two-day visit of Mumbai, said.
The rapidly expanding aviation sector handles 2.5 billion passengers across the world in a year; moves 45 million tonnes of cargo through 920 airlines, using 4,200 airports and deploying 27,000 aircraft.
"Such a large scale global operation requires that experts of Member States of International Civil Aviation Organisation must gather frequently, to evolve consensus and co-ordination on various issues to ensure a universally safe and secure international aviation sector," she said.
17/10/11 PTI/Economic Times

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‘India to be among top 5 aviation nations in 10 years’

Mumbai: Highlighting the huge potential for growth of civil aviation in India, the President, Ms Pratibha Patil, urged the world aviation industry to partner with India for the expansion of the industry.
“Recent estimates suggest that domestic air traffic will touch 160 to 180 million passengers per annum, in the next 10 years and international traffic will exceed 80 million passengers per annum. India is poised to be among top five aviation nations in the world in 10 years. At present, India is the ninth largest civil aviation market,” she said inaugurating the fourth International Civil Aviation Negotiation (ICAN) conference in Mumbai.
“Flying is no longer the prerogative of a few privileged, but an option for an increasingly broader section of society,” observed Ms Patil.
She said deregulation of the domestic sector and liberalisation of bilateral traffic rights in the past decade has brought choices of carriers, choices of timings and fares. There is a sea-change from 500 departures per week in the country in 1994 before deregulation, to nearly 15,000 departures daily - a 30 times jump.
Today 87 foreign airlines fly to and from India and 5 Indian carriers fly to and from 40 countries. In the last decade, domestic air traffic has quadrupled from 13 million to 52 million and international traffic more than tripled to 38 million. A similar trend is observed in the cargo sector, she added. The rapidly expanding aviation sector handles 2.5 billion passengers across the world in a year; moves 45 million tonnes of cargo through 920 airlines, using 4,200 airports and deploying 27,000 aircraft.
17/10/11 Nivedita Ganguly/Business Line

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More bilateral air traffic pacts to open up Indian sky further

Mumbai: India will negotiate bilateral air traffic rights with 35 nations in its bid to start additional foreign flights from the country.
The negotiations will be held here tomorrow at the International Civil Aviation Negotiations Conference which will be inaugurated by President Pratibha Patil. Civil Aviation Minister Vayalar Ravi and two former ministers —Praful Patel and Rajiv Pratap Rudy — will be present along with top officials from airlines and airports.
The conclave comes close on the heels of the Comptroller and Auditor General criticising the government for “liberally granting” traffic rights to foreign carriers from the Gulf. The CAG report also flayed the authorities for failing to protect the interests of Air India. Simultaneously, private Indian carriers want approval to expand international operations — and airports like Delhi too are pushing the government to allow more foreign flights.
A bilateral agreement grants airlines reciprocal flying rights from respective countries. However as the CAG noted, foreign airlines were utilising almost two-third per cent of entitlements, while the Indian carriers were utilising only one-fourth. Foreign carriers were granted permission to several airports in India, penetrating the domestic market. CAG had recommended that government freeze or, if possible, roll back some of the entitlements.
“We will uphold India’s interests,”' civil aviation secretary Dr Nasim Zaidi stated. The talks are being held after three rounds of inter-ministerial meetings that include secretaries from external affairs, tourism and economic affairs department. Zaidi, though, was tightlipped on whether India would extend seat entitlements with other countries.
17/10/11 Aneesh Phadnis/Business Standard

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'Fall in business confidence hits air travel'

New Delhi: Fall in business confidence has affected air travel around the globe, including in India and China, which indicates further slowdown in passenger traffic in the months ahead, IATA said today.
Maintaining that the decline in business confidence has been "widespread" including in these two countries, the global airlines' body said "lower levels are consistent with the decline in international trade and business confidence" as seen in recent months which was now generating a fall in business travel.
"This weakness in a key driver of business travel is widespread, affecting even the Chinese and Indian economies" where the confidence has "fallen sharply in recent months", the International Air Transport Association (IATA) said in its latest analysis of premium air traffic for August.
It said the major source of weakness appeared to be Europe, where economic conditions and business confidence have "deteriorated sharply".
17/10/11 Financial Express

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Cheap Flight Tickets Scam in India

If you are looking to travel in India this time of the year, and plan to book flights online, be aware that there are many scammers trying to make quick money out of you. The scammers promise cheapest flight tickets to potential customers and have duped several naïve travelers in cities like Hyderabad and Chennai in India. The Travel Agents Association India (TAAI) and police have warned people to be careful while booking tickets online.
Even a senior Hyderabad city official was not spared when he was duped by scammers through their online ticket portal. The method of operation is quite simple: the” fake “site is registered on information websites like Justdial.com with fake address and information. These fake sites claim to work for prominent travel agents (like Arzoo.com and Hermes, a travel solutions company) on the internet. The fake agents also register with these travel agencies, which often fail to verify their credentials. They give them the authority to get the login and other information from passengers. When a prospective customer goes online to Just dial and books tickets through such ‘agents’ they get a call a few days prior to travel date that the flight has been cancelled. The refunded money is taken by the fake agents leaving passengers with the realization of having been duped.
16/10/11 Dipashri Mutsaddi/Wikipeers

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Soon, hire Pawan Hans chopper for ‘wedding duty’

New Delhi Weddings in Delhi will soon turn more fairytale like, as the Delhi Tourism and Pawan Hans Helicopter Limited are in the process of signing a Memorandum of Understanding (MoU), which will allow residents to hire a helicopter for wedding ceremonies.
The choppers will also be used for sightseeing within the city and to travel to nearby areas like Bharatpur, Agra, etc, said an official of Delhi Tourism.
“The MoU is likely to be signed very soon. People can hire helicopters for marriages or for Delhi darshan tours. It will provide a new experience to the people of the city. Tourists can also make use of these helicopters to go to Agra or Bharatpur and other nearby areas. But, this will be subject to clearances from competent authorities like Civil Aviation Ministry, etc ‘’ said G G Saxena, Managing Director Delhi Tourism.
According to officials, the project file is with the Delhi government and is waiting for approval.
Confirming this, Pawan Hans said the helicopters could be made available to people “for hire” by as early as next month. “The number of helicopters required will be decided by how popular the project is. We will provide such facilities for a period of three to six months at first. There are certain areas in Delhi which are ‘no flying zones’, so, all these issues will also have to be kept in mind before starting this service,’’ said a source in Pawan Hans.
17/10/11 Ruhi Bhasin/Express India

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Kingfisher's discounts on select routes could trigger price war

Bangalore: After exiting the low-cost segment, private carrier Kingfisher Airlines has now unveiled new ‘low' fares on its full-service flights, which is expected to trigger off a price war among full-service carriers.
For instance, a Bangalore-Delhi economy seat on the airline can now be bought for Rs 5,191, normally sold at Rs 6,900.
Although these fares are available for a limited period, this could trigger a price war in the sector, where most full-service airlines are already making losses. “In the current scenario, most of these airlines are making losses and will continue to do so with such pricing strategies,” an aviation analyst told Business Line. It's important for airlines to sell the first 70 per cent of their seats, and earn money, he said.
Most airlines sell a bulk of their seats in advance to big agents and consolidators, especially during the travel season (usually the third quarter of the fiscal), and a miniscule 20 per cent is what they sell at a premium. Margins take a hit with these strategies.
However, with Kingfisher Airlines deciding to exit the low-cost segment and the Government of India asking national carrier Air India to increase their fares, “a structural change is starting to happen in the industry”, he said.
16/10/11 Anjana Chandramouly/Business Line

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Air fares rise on routes connecting small cities

New Delhi: Even as the average domestic fares saw a fall during the second quarter of the current financial year, fares between routes connecting smaller cities saw a double-digit increase compared to the same period last year. Fares of routes connecting metros, however, declined during the same period.
Analysts say the demand-supply mismatch between small city pairs and routes that connect smaller cities, and bad economic situation has led to rise in fairs in these routes.
According to American Express data, which is a comparison of the base fares during July-September 2010 with the same period in 2011, shows that smaller cities are seeing an increase in fares. It also shows the large city pairs have seen a decline in fares leading to around 14 per cent fall in the domestic fares. The average domestic fare during the period was Rs 3,500, that is around 14 per cent less than the same period last year.
Analysts say bad capacity management by airlines is the reason behind the rising fares in the non-trunk routes.
“India is growing in smaller cities and unfortunately infrastructure is not keeping pace. This combined with the unavailability of smaller aircrafts with Indian carriers, is causing the price rise. Availability of few seats on the route also cause the price to rise,” said Keyur Joshi, Co Founder & Chief Operating Officer of MakeMyTrip.Com, an online travel portal.
16/10/11 Mihir Mishra/Business Standard

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Carbon tax cannot be source of climate finance: Pranab Mukherjee

Paris: India Saturday strongly opposed imposition of carbon tax as an additional source of funding to fight climate change.
"India believes that some of the measures like carbon export optimisation tax and levy on CDM/offsets violate the principles of the Convention (UNFCCC) as their incidence falls entirely on developing countries and these cannot be recognised as a source of new and additional finance for climate change," Finance Minister Pranab Mukherjee said in Paris.
He was making an intervention at the G20 Finance Ministers' and Central Bank Governors' meeting on Development, Climate and Innovative Financing.
He said global levies on carbon emissions from shipping and aviation should be raised only if a mechanism for refund of revenues collected from developing countries in put in place.
The refund should not be treated as climate change finance flow or a contribution of developing countries to global revenue mobilisation envisaged under the UNFCCC, he said.
"We also feel that the flow of finance leveraged by international finance institutions (IFIs) or the multilateral development banks (MDBs) should be counted towards the overall target only if there is a net additional infusion of capital by the developed countries to the capital base of the MDBs/IFIs," he said.
15/10/11 Chandra Shekhar/PTI/Daily News & Analysis

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Now fly to a tourist spot on air taxi in Rajasthan

Jaipur: If you are postponing your trip to tourist destinations in Rajasthan because of the treacherous road journey, worry no more. From the New Year, you can simply fly to your chosen spot in an Air taxi. Tourists would be provided with Air taxi service between Jaipur and tourist destinations in Jodhpur, Jaisalmer, Bikaner, Udaipur and Kota.
Private companies have lined up in state to ferry passengers on helicopters and fixed-wing aircrafts. As many as 16 parking bays have been cleared for the Air taxis at the runway near Terminal 2 of the Sanganer Airport in Jaipur by the airport administration.
When contacted, Jaipur Airport Director RK Singh said, "we have already slotted parking bays for the air taxis from Jaipur to other tourist destinations in the state." According to sources, three companies including UT Air and Kareena have expressed willingness to run the Air taxi service from Jaipur Airport.
16/10/11 Daily News & Analysisi/daily baskar.com

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Jet fuel prices cut marginally

New Delhi: After two consecutive price hikes, state-owned oil companies on Saturday cut jet fuel prices marginally by 0.5 percent in line with softening in global oil rates.

The price aviation turbine fuel (ATF), or jet fuel, at Delhi's T3 airport was cut by Rs 325 per kilolitre (kl), or 0.5 per cent, to Rs 58,271 per kl with effect from midnight tonight, an official of Indian Oil Corp (IOC), said.

The nation's largest fuel retailer, IOC, and other state retailers, Hindustan Petroleum and Bharat Petroleum, had on October 1 and September 16 and raised jet fuel prices by 2.5 percent and 1.5 percent respectively, mainly because imports had become costlier due to fall in rupee against the US dollar.

ATF in Mumbai, home to the nation's busiest airport, will cost Rs 338 per kl more at Rs 59,021 per kl from tomorrow as against the old price of Rs 59,359 per kl.

15/10/11 ZeeNews

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Oman to attend ICAO meet in Mumbai

Muscat: The Sultanate, represented by the Transport and Communications Ministry will take part in the 4th conference of the International Civil Aviation Organization (ICAO) for air negotiations related air services, which will be held in Mumbai, India and lasts for several days.

The Sultanate's delegation will be led by Said bin Ali bin Nafal al Mas'hali, Transport and Communications Ministry's Under-Secretary for Civil Aviation Affairs and membership of a number of officials from the Air Transport Department at the Civil Aviation Affairs, the national carrier of the Sultanate (Oman Air) and Oman Airports Management Company (OAMC).

ICAO conference will provide countries a central place to meet to conduct negotiations or bilateral or multi consultations to discuss topics related to air services.

It is expected that the Sultanate's participant delegation will negotiate with a number of countries of the world regularising air transport services between the Sultanate and these countries.

15/10/11 Oman Daliy Observer

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President to inaugurate civil aviation conference in Mumbai

Mumbai: President Pratibha Patil will Monday inaugurate an international conference on civil aviation in Mumbai.

The 4th International Civil Aviation Negotiation Conference 2011 (ICAN 2011), hosted by the ministry of civil aviation, is the first of its kind summit being held in India under the aegis of the International Civil Aviation Organisation (ICAO), Montreal, Canada, a UN agency responsible for international civil aviation.

Organised with a purpose for aviation negotiators from different countries to conduct bilateral air services negotiations or consultations in a central meeting place, the earlier conferences were held in Dubai, Istanbul (Turkey) and Jamaica.

Patil will also release coins to commemorate 100 years of civil aviation in India.

In India, there has been a significant enhancement in national and international connectivity, making it the ninth biggest civil aviation market in the world. India has bilateral air services agreements with 108 countries and at present 72 foreign airlines are operating to/from various destinations within the country.

Three Indian carriers are operating to 35 destinations in 25 countries.

14/10/11 IANS/msn.com

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Swajas Air Charters sets issue price at Rs 90/share

Swajas Air Charters , an air charter services provider, has fixed the issue price at higher end of price band of Rs 84-90 a share. The company has received Rs 35.68 crore through the issue of 39.65 lakh equity shares, by diluting 26.06% stake.
The issue, which opened for subscription during September 26-October 5, was subscribed 1.43 times.
Swajas Air had reduced the price band to Rs 84-90 from Rs 90-100 a share and extended the closing date to October 5 from September 28, 2011 as it could not get subscription in first three days.
It is a Chennai-based non-scheduled airline operator servicing a fleet of fixed-wing aircraft and helicopters across India.
12/10/11 Krishna Verma/Moneycontrol.com

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CAG report indicts Praful Patel for decisions as civil aviation minister

New Delhi: There could be fresh trouble for heavy industries minister Praful Patel after the Comptroller and Auditor General’s report indicted him for his policy decisions when he headed the ministry of civil aviation.

The Centre for Public Interest Litigation, an NGO, has moved the Delhi high court seeking a central vigilance commission inquiry into aircraft acquisition deals of Air India, subsequent loss of market share for the airline and the ministry’s role when Patel was heading it.

A division bench of acting chief justice AK Sikri and justice Siddharth Mridul is likely to hear the PIL on Wednesday.

The PIL has made several allegations, saying the ministry’s mala fide decisions led the erstwhile Air India and Indian Airlines (the present Air India has been formed after the two’s merger) into heavy losses. It also alleged that the fleet expansion programme, seeking to add 111 aircraft, was “unnecessary” and approved without proper study.

12/10/11 Kanu Sarda/Daily News & Analysis

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HAL director kills self

Bangalore: Ace fighter pilot, ex-IAF man and a director of Hindustan Aeronautics Ltd, Sqn Leader (retd) Baldev Singh, was found dead at Nandi Hills, some 60 km from Bangalore, on Tuesday morning.
The Chikballapur police said it looked like suicide and that he was found hanging from a tree on the hills.
Senior HAL officials said they would not know the motive for the suicide. Mr Ashok Nayak, Chairman, who flew down to Bangalore for a few hours from an IAF commanders' meeting, said he was sad to lose Sqn Leader Singh.
The latter was also holding the additional post of Director Design.
Sqn Ldr Singh, who was around 55, was appointed Director Corporate Planning & Marketing of the defence PSU only on August 16 this year. He was Executive Director Flight Operations prior to that.
11/10/11 Business Line

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Bombardier Business Aircraft Strengthens Asia-Pacific Sales Team

Montreal, Quebec: Bombardier Aerospace today announced that it has strengthened its Business Aircraft sales team in China and Asia-Pacific to increase its focus on the growing activity and volume in the region. The territory is now overseen by a Vice-President and two Regional Vice-Presidents.

"Bombardier is forecasting tremendous growth for China and Asia-Pacific over the next 20 years with industry-wide business jet deliveries forecast at approximately 3,350 units for the region, including 2,360 aircraft for China alone," said Bob Horner, Senior Vice-President, Sales, Bombardier Business Aircraft. "The vast size and strategic importance of this territory warrants special attention in order to harness the full sales potential of our Learjet, Challenger and Global aircraft. To this end, we have strengthened the sales organization, dividing the territory into two distinct regions, China and Asia-Pacific/Australia, each represented by a Regional Vice-President and reporting directly to a Vice-President," he added.

Christophe Degoumois has been promoted to the position of Vice-President responsible for China, Asia-Pacific, Australia, Central and Eastern Europe, Russia and Commonwealth of Independent States (CIS) countries. Christophe has been with Bombardier Business Aircraft for over seven years and has had great success as Regional Vice-President Central and Eastern Europe, Russia and CIS countries over the past five years. One of his key strengths is managing and developing successful sales campaigns in emerging markets, a key component of his achievements in Russia and CIS countries.

10/10/11 India PRwire

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Business jet deliveries forecast to rise in 2012

Las Vegas: A leading business aviation forecast predicts business jet deliveries will increase in 2012, but won't return to pre-recession levels until the end of the decade.
This year marks the bottom of a down cycle that began in late 2008, when the recession hit the general aviation industry, the outlook said.
Near term, demand will be tempered by the continued slow economic recovery.
But after 2012, the industry appears positioned to begin another expansion, although at a moderate pace.
Honeywell Aerospace's just-released forecast predicts sales and deliveries of 10,000 business jets worth $230 billion over the 10-year period from 2011 through 2021.
Half of the deliveries — 5,000 — are projected for the five years from 2012 to 2016.
"Overall, I think it's a solid outlook," said Rob Wilson, president of Honeywell Aerospace's business aviation and general aviation unit.
Honeywell, a components and systems manufacturer, released its 20th annual outlook at a meeting Saturday evening at the Palms hotel in Las Vegas before the start of the National Business Aviation Association meeting and convention. The show opens Monday and runs through Wednesday.
Honeywell surveyed more than 1,500 corporate flight departments around the world to compile its forecast.
Honeywell's outlook also found:
* Significant international demand with 45 percent of the shipments outside North America, with a continuing global shift in demand.
* The world's highest percentage of purchase plans expected from Brazil, Russia, India and China.
* An increase in the number of planned purchases from Asia, the Middle East and Africa.
* Flat buying expectations from North American customers.
09/10/11 Molly McMillin/Wichita Eagle

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Mumbai airport to host 11th Routes Asia 2013

Mumbai Chhatrapati Shivaji International Airport (CSIA) will play host to the Eleventh Routes Asia 2013, an event for airline and airport networking.

According to industry sources, the event is expected to bring many dignitaries to Mumbai from the airline, airport and tourism industry to discuss opportunities for airline route development.

Mumbai International Airport Limited (MIAL) managing director G V Sanjeev Reddy said the event will be the largest Asian aviation forum to be organised at any Indian airport.

“The choice of CSIA as the host airport helps to reinforce its position as India’s foremost airport. We are very happy that we will be hosting the largest Asian aviation forum in India at CSIA,” said Reddy.

Reddy said CSIA has now emerged as one of the most significant aviation hubs in the region.

“Besides being one of the busiest airports in South Asia, CSIA has also emerged as one of the most significant aviation hubs in the region because of the increase in passenger traffic and number of carriers flying to Mumbai. While the city is a critical business hub for the region and key to the regional strategy of leading corporates, this status will further be enhanced after the completion of the state-of-the-art integrated passenger terminal T2 in 2013,” he said.

08/10/11 Express India

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Badals love air travel at the cost of state exchequer

Chandigarh: Sky is not the limit, it seems, for Punjab chief minister Parkash Singh Badal and his deputy CM son Sukhbir Badal when it comes to chopper-hopping across the state. It has forced the government to use the services of as many as three helicopter companies, besides arranging regular fleet of cars.

The hiring charges for each of the companies -- Gobal Vectra, DLF and India FlySafe Aviation - have already reached Rs 3.20 crore for the period between December 20, 2010 and May 3, 2011. The bills for the next months are still awaited.

The two flew 77 times in almost 133 days, according to the documents from the aviation companies.

In February alone, the deputy CM's 22 visits cost the exchequer nearly Rs 88 lakh. He visited Patiala, Ludhiana and Jalandhar, which are easily accessible by road.

Two months later, the chief minister flew to 22 similar locations across the state on a Global Vectra chopper, duration for which was nearly 44 hours, shooting up the hourly charges to Rs 76 lakh.

08/10/11 Rohan Dua/Times of India

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As govt keeps domestic carriers grounded, foreign airlines hog seats, profits

The report of the Comptroller and Auditor General (CAG) tabled in Parliament last month assailed the government for giving away foreign flying rights to carriers other than Air India, and recommended freezing or rolling them back to provide “a more than level playing field” to the national carrier.

The fact however, is that the Ministry of Civil Aviation has steadfastly refused to negotiate any new or additional flying rights with other countries in the last three years. The government has been sitting on requests by private domestic airlines for additional seats on overseas routes, in the process allowing foreign carriers to ramp up their market share. This, despite the fact that Air India has been unable to utilise its foreign flying rights for want of aircraft, said a top AI official.

The ministry says it will consider the domestic carriers’ proposals “soon”. “We have been allowing airlines to fly on routes where they had sought permission. All the pending proposals will be processed soon,” Civil Aviation Minister Vayalar Ravi told The Indian Express.

08/10/11 Smita Aggarwal/Indian Express

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Surya Kiran aerobatics team to take to skies again

Hindon (Ghaziabad): India's nine-aircraft Surya Kiran aerobatics team was badly missed during the Air Force Day parade here on Saturday, but its disbanding this February is not the end of the road for it yet.

The Surya Kiran will once again soar into the skies, with the Indian Air Force deciding to revive it three years from now with the British Hawk Advanced Jet Trainers (AJTs) that India will specially procure for the aerobatics team by 2014.

This announcement was made by IAF Chief Air Chief Marshal Norman Anil Kumar Browne while addressing the air warriors after reviewing the 79th Air Force Day parade - that included the aerial display - at the air base here on the edge of the national capital.

Browne also said it was "painful" to let go of the team, though it was only for a few years. He also promised that the Surya Kiran will enthrall the entire nation, as well as aviation enthusiasts abroad once again.

"This year, we had to take the painful decision of temporarily disbanding the nine-aircraft Surya Kiran aerobatics team. But we owe it to the nation to revive the team again and I assure you that in three years from now, the Surya Kiran will once again rise over the skies in Hindon and perform across the length and breadth of India, and indeed around the globe, this time newly painted in the national colours on the Hawk aircraft," Browne said in his address at the parade.

08/10/11 ZeeNews.com

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Airbus eyes customer finance amid euro crisis

Sydney: Global aviation giant Airbus said it would consider providing financing for customers as the euro zone debt crisis drags on, but affirmed upbeat long-term forecasts due to booming Asian demand.
The comments came as the International Monetary Fund warned of a euro zone recession, with banks — headed by French-Belgian lender Dexia — now facing collapse over bad exposure to sovereign debts.
Tom Williams, vice-president of programmes, said Airbus had not seen any immediate impact from intensifying debt crisis in the euro zone, but it was in talks with European credit agencies about shoring up its customers.
“The European banks have been in the past few years active in terms of aircraft finance... and clearly there will be some question marks if you look at the euro crisis today and the liquidity position of some of the big banks,” he told a markets briefing in Sydney.
“We will if necessary enter into some financing although we’re not a bank,” he added.
“Of course that’s just an insurance (policy) and it has a cost, but it does allow the airlines to go into the market with a strong guarantee and to raise money.”
07/10/11 Oman Daily Observer

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EU's airline emission cap likely to take off

Brussels: For the international aviation industry, the skies just grew stormier. The advocate-general of the European Court of Justice (ECJ), an advisor to the European Union’s highest court, has said it is legal for the latter to include non-European airlines in its new carbon emissions trading scheme (ETS).
India has been leading the criticism from the international aviation industry on the move, which is pitting airlines against the EU in what some analysts fear may spark the next big trade war. New Delhi held a meeting at the end of September, bringing together 26 non-EU members of the International Civil Aviation Organisation (ICAO), a UN aviation body, including the US, China, Russia, and South Africa. At the end of the meeting, delegates adopted a joint declaration, stating the EU’s plan to include aviation in the ETS was “discriminatory” and a violation of international law.
However, advocate-general Juliane Kokott said today the “EU legislation does not infringe the sovereignty of other states or the freedom of the high seas guaranteed under international law, and is compatible with the relevant international agreements”.

The ECJ’s final decision on the matter is expected early next year. However, this ruling makes it likely that Brussels would continue to stick to its guns. The case in the context of which the opinion was made was brought against the EU by the Air Transport Association of America, American Airlines and United Continental. While the opinion of the AG is not binding, the ECJ tends to follow the advice given in the vast majority of cases.
07/10/11 Pallavi Aiyar/Business Standard

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The Future of Air Travel and its Affect on the Environment

In a couple of decades’ time, despite climate change, there is likely to be more flying than there is now. On current trends, while the global economy is predicted to grow by 3.3% between 2010 and 2030, the number of aviation passengers looks set to grow by 4.2%. What will change, however, is who flies – and how.
New patterns of trade and migration between the powerful nations of China, India and Brazil will create many more routes and generate hundreds of millions of new outbound tourists. As these countries develop stronger business ties, they will see face-to-face contact as crucial.
The combination of rising oil prices and carbon costs means that the conversion to low-carbon transport is no longer an environmental issue: it’s an economic imperative. And there are likely to be multiple responses to these pressures.
Airline margins will be tighter than ever, and we may well see mass industry consolidation. European and North American operators could be subsumed in mega-alliances controlled by the major Chinese and Indian airlines.
Flying will have to become much more efficient. Advances in technology – including algae and jatropha biofuels – will be crucial. Gains will also be made by new navigation systems designed to eliminate inefficiencies in air traffic control.
06/10/11 Peter Madden/OilPrice

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Airlines can be charged for carbon pollution, court rules

Airlines can be charged for their greenhouse gas emissions on flights to and from Europe, according to a landmark court ruling on Thursday.
The indicative ruling, by the advocate general of the European court of justice, is a blow to airlines and non-European governments that had hoped to escape from the extension of the European Union's emissions trading scheme to cover air transport from next year. It was greeted with jubilation by environmental campaigners, who want to ensure that emissions from aviation are subject to the same controls as those of other industries.
If the ruling is followed, airlines will be forced from next year to pay for their carbon emissions on all flights to and from, as well as within, Europe.
Sarah Burt, staff attorney at the campaigning organisation Earthjustice, said: "In the absence of an effective global measure for reining in greenhouse gases from aviation, the EU law is a necessary step to address this significant and rapidly expanding source of pollution. We are pleased that the advocate general's opinion confirms the legality of this important action."
If successful, Europe's move to include international flights in its emissions trading system will be the first time that emissions from flights – which make up about 2 to 3% of global greenhouse gases – have been regulated. Aviation and maritime transport were explicitly excluded from the 1997 Kyoto protocol, the only international binding treaty on emissions reduction.
Air industry bodies that helped bring the case to court vowed to fight on. The Air Transport Association said: "[We are] disappointed that Advocate General Kokott does not believe that the European Union is bound by the Chicago Convention, the treaty governing aviation, and that the unilateral application of the EU [emissions trading sytem] to international aviation otherwise does not violate law. ATA's view that the extension of this unilateral, regional scheme to aviation violates international law is supported by more than 20 countries, including Brazil, Russia, India, China, Japan, the United States and many others, which recently reconfirmed their opposition to the EU."
06/10/11 Fiona Harvey/Guardian.co.uk

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Airlines sag more with rupee slide

New Delhi: Red ink spreads as around a third of the operating cost of every airline is calculated in dollar terms.
The slide in the value of the rupee against the dollar is making the lives of airline companies, already beset with problems, a bit more difficult. Around a third of the operating cost of every airline is calculated in dollar terms.
Airlines with less international exposure are seeing more impact because of the absence of any dollar revenue. “With the depreciating rupee, our costs have increased by 10 per cent. We have no option but to observe this cost, at a time when the pressure on fares continue because of low fares by two airlines,” said a senior airline executive, who did not want to be identified.
The rupee has shed a little over 10 per cent in value since the last week of July. “Around 35 per cent of our costs are paid in dollars. Even as the payments for parking and landing at international airports are paid in the local currency, the charges are calculated in dollars, making it the same for us,” said another airline executive.
The lease rentals and maintenance rentals of aircraft, salaries paid to expatriate pilots, parking and landing rates at international airports and jet fuel prices are all dollar-denominated costs.
06/10/11 Mihir Mishra/Business Standard

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'Foreign airlines should invest in desi ones'

New Delhi: With financially-troubled Indian carriers like Air India and Kingfisher struggling to survive, the ministry for commerce and industry is favouring allowing foreign carriers to invest in desi ones.
Days after the department of industrial policy and promotion wrote to the aviation ministry on this count, commerce secretary Rahul Khullar has also favoured such a move. "In my personal view, foreign airlines should be allowed to invest in Indian carriers. We are in favour of general liberalization," Khullar said.
However, the aviation ministry is yet to decide given the pros and cons of the move. Also, the aviation industry is divided on this front with Mallya favouring FDI by foreign airlines, while others like Jet's Naresh Goyal sceptical of the threat of takeover of desi players by global biggies.
06/10/11 Times of India

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Airlines Mired in ‘Crisis' as Margins Shrink, IATA CEO Says

Airline profits forecast to total $28 billion in the three years through 2012 may be unsustainable as over-capacity and looming regulatory costs weigh on margins, the head of the IATA industry association said.
Airlines will generate net income equal to 0.8 percent of revenue next year, a margin that may shrink further if economic growth slows to less than 2.4 percent, Tony Tyler, chief executive officer of the International Air Transport Association since July 1, said in an interview in London.
“The natural condition of the airline industry is crisis,” Tyler said. “Occasionally, we've had short periods where the conditions are quite benign and everything goes quite well, and the danger is to believe that's normal -- and that's wrong.”
IATA's prediction for airline earnings to drop almost 30 percent to $4.9 billion in 2012 may prove too optimistic should the global economy slow further, said Tyler, who was CEO at Cathay Pacific Airways Ltd., Asia's No. 1 international carrier, for almost four years. The industry has lost money in seven of the past 10 years, even as sales doubled to almost $550 billion.
“We're assuming world economic growth will be just marginally down for next year,” Tyler said in the interview in London. “If we're wrong with that then all bets are off.”
04/10/11 Bloomberg/Business Week

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EU green chief backs inclusion of aviation in emission norms

New Delhi: Visiting EU environment commissioner Janez Potocnik has defended the inclusion of aviation in European Union's Emission Trading Scheme (ETS) from January on the ground that the per passenger cost does not work out to be too much and in the changing global scenario of green development this is the way forward.
Potocnik is here to attend the Ministerial Dialogue on Green Economy and Inclusive Growth. India is opposed to the surcharge that inbound flights to the EU will have to pay because of the new emission norm and plans to take up the matter in international fora.
"We are serious about fighting climate change and this is an important initiative. The per passenger cost for a transatlantic flight works out to about 2.15 euro. This isn't too much. Besides, an airline that shows 85% compliance to our set ETS targets won't need to pay the tax at all," Potocnik said.
He stressed that in the quest for green development, the EU wants to tax resources rather than labour which is the current practice. "We are not asking you to do this but our thinking is that the time has come for the change given the resource constraints faced by countries, including developing ones like India and China.
05/10/11 Times of India

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US aviation lobbying 'will not change European emission trading laws'

US airlines are wrong to think that they can force the European Union to back down from plans to make carriers pay for emitting carbon, environmental organisations and the EU warned on Tuesday.
Airlines from more than two dozen countries have intensified their lobbying against the EU measure ahead of a recommendation from the European court of justice.
An advocate general to the court will on Thursday issue a preliminary legal opinion on the efforts by US carriers to stop the European Union from bringing the aviation industry in line with other sectors under the emissions trading scheme (ETS) regime.
The opinion is seen as an important indicator of how the full court might rule, when it renders its decision, expected in early 2012.
It is possible that the court could decide not to hear the merits of the airlines' case, but environmental organisations said they thought that was unlikely.
The main thrust of the airlines' arguments was that the law infringes on the sovereignty of countries outside the EU, and is in conflict with existing aviation treaties.
The airlines are also pressing Congress and the White House for legislation blocking the European move.
But Annie Petsonk, an international legal counsel for the Environmental Defence Fund, warned the strategy – which aimed to set up a "cat fight" between Europe and America – could backfire.
04/10/11 Suzanne Goldenberg/The Guardian

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Indian airlines lose altitude in price war

New Delhi: India’s private airlines began the year optimistically, as soaring passenger numbers raised hopes that profits were finally on the horizon. But while Indians are flying in record numbers, the airlines are still bleeding red ink, wounded by surging fuel prices and fierce price wars with ailing state carrier Air-India.
Already burdened with years of accumulated losses, the private airlines are battling for survival, and some of the weaker ones could be forced out of business even as Air-India – the most indebted of all – is kept aloft by a taxpayer-funded lifeline.
“Some of these airlines are at a critical stage,” said Kapil Kaul, the south Asia chief executive of the Centre for Asia Pacific Aviation.
Air-India, which has estimated debts exceeding $9bn and is expected to lose another $1.5bn this year, was forced by a pilot strike to ground most of its domestic flights for 10 days earlier this year. Since then it has fought back by cutting its domestic fares by between 15 per cent and 20 per cent.
Industry executives say the fare-slashing by Air-India – which received $425m in government handouts in the past two years and is looking for more – has pressured private airlines to hold down their own fares even as more crowded planes should have brought them greater pricing power.
04/10/11 Amy Kazmin/Financial Times

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No mechanism to address complaints against pvt airlines: DGCA

New Delhi: It has been 17 years since Indian skies were opened for private airlines, but there are still no regulations in place under which a citizen can file complaint against them, according to the Directorate General of Civil Aviation.
Responding to an RTI application filed by Pune-based activist Vihar Dhurve who sought to know names and designation of officers who are in-charge of dealing with complaints filed by citizens against private airlines, the aviation regulator said, "No person has been designated as in-charge to deal with complaints against private airlines."
Dhurve had also sought to know if there were any notification, rules or regulations or citizens charter under which such complaints can be made by the private citizens.
03/10/11 PTI/Economic Times

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India records highest growth in domestic air traffic in August

New Delhi: India witnessed the highest growth in domestic air passenger traffic this August registering almost a 20 per cent rate, even though the growth in international traffic slowed down worldwide.
India, which recorded a demand growth of 19.7 per cent in August, was described as "the top performer among domestic markets", latest figures analysed by the global airlines body, International Air Transport Association (IATA), showed.
India and Brazil, which followed in the domestic growth, together represented three per cent of worldwide air travel, it said.
In the international segment, passenger demand was up 4.5 per cent over August 2010, but this represented a significant slowing from the six per cent recorded in July.
Noting that the rate of decline in freight markets accelerated, the IATA said the 3.8 per cent contraction in freight markets in August was "more than double the pace of July's 1.8 per cent decline."
03/10/11 PTI/Economic Times

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