Indigo's profits are not surprising, competitor's survival is

Mumbai: Competitors and sceptics have been doubtful about Indigo’s year ending figures. This, at a time when the aviation sector has been bleeding losses quarter after quarter.
Critics not entirely convinced about Indigo's numbers say that the company generates profit by entering a sale and lease back deal with aircraft manufacturers, However, Indigo has now disclosed its operating profit figures which stood at Rs 1,758 crore on an operating margin of 18.6%. This number is calculated before taking sale and lease back benefit. Au contraire, Jet Airways reported an operating margin of 7%, while SpiceJet was barely profitable at operating levels.
 What needs to be compared, is the long term sustainability of the airline. This is where Indigo differs from the others. The airline’s closest competitor was Spicejet. But a new CEO appointed by the company’s new owners – The Marans of Sun TV Network – managed to pull the airline down into losses. Indigo, on the other hand, in cricket parlance, has stuck to its basics by taking singles. The airline did not enter the price war when every other airline was rooting on Kingfisher’s fall to earn numbers and it continues to stick to its operating format.
 Owned by two of the most experienced Indians in the sector, Indigo has a fixation with cost control. The company has stuck to its low-cost carrier model rather than the low-fare carrier model. The company operates only one type of aircraft, which gives them the flexibility of using the same crew, thereby cutting hiring, training and upgradation cost of the crew. As per the aviation laws, separate crew needs to be maintained for different kind of airplanes and they cannot be interchanged.
Indigo also has the highest passenger load factor which means it carries more passengers on its plane. This, leads to higher revenue and also helps distribute cost and increase profitability. Further, its planes make more trips per day than any other airline in the country. This is possible because it has one of the best turnaround time (time taken between landing and the next take-off) of 30 minutes.
30/09/13 Shishir Asthna/Business Standard

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Aviation safety norms: Developer vs. HAL dispute intensifies in court

Contrary to the claims made by M/s Chalet Hotels while getting No Objection Certificate from Hindustan Aeronautics Limited (HAL) for the residential apartment project  Raheja Vivarea in Bengaluru's Koramangala area, Karnataka State Remote Sensing Application Centre(KSRSAC) has estimated the height of the construction spot of Raheja Vivarea to be 892 metres Above Mean Sea Level (AMSL).
The immediate implication of this is that Raheja Vivarea can not construct any of the blocks in the proposed complex beyond 13 floors, or 40 metres.
Earlier, a group of concerned residents had written to Defence Minister A K Antony, highlighting the difference in the elevation of the project site above sea level, as projected by the builder, M/s Chalet Hotels (870 metres) and as available in Survey of India -1970 maps and Google maps (892 metres). This data was used to get the height clearance for Raheja Vivarea from Hindustan Aeronautics Ltd airport, which is a defence establishment.
In response to this, the Defence Minister had written to HAL, who in turn revoked the NOC given to Raheja Vivarea.
30/09/13 Nikita Malusare/Citize Matters

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Will the DGCA be able to save its face on October 23?

Huge embarrassment for the DGCA as the Bombay High Court has put the Indian Aviation regulator to notice. The matter pertains to the Writ petition that was filed by the All India Cabin Crew Association maintaining that the regulator itself flouts the rules and norms set up for the Indian skies thereby putting in danger the lives of the passengers and crew alike. On October 23 the court will hear the case. Such is the discontent that the petitioners even pleaded that interim relief be provided so that further violations can be stopped. Headlines Today is in the exclusive possession of the copy of violations and the letter written by the AICCA to DGCA after the court order. The letter states that the AICCA is ready to face the regulator on October 23.
The violations detailed along with the Writ petition alleges hundreds of violation committed over the years by Air India which were ignored by the regulator inspite of the repeated pleading by the employees. Speaking to Headlines Today the AICCA maintained that there have been so many violations over the years that they were left with no choice but to approach the court. AICCA has submitted a long list of the violations. For instance on
March 31, 2011 - AI 127 DEL - ORD FLIGHT...B 777 300 ER was carrying only 12 crew on board wherein the count should have been 16.
April 1, 2011 - AI 188 YYZ TO DELHI...B 777 300 ER again managed with 12 crew whereas the requirement was of 16 crew.
The crew was given rest of only 3 hours short by 2 hours. The AICCA alleges that between March 31, 2011 TO June 14, 2011 more than 450 purposeful violations were committed and the DGCA did nothing on it.
DGCAs letter dated 26/02/2008 clearly states that all the doors of the long haul flights have to be manned.
29/09/13 Pankaj Upadhyay/India Today

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IAF celebrates 81st anniversary

A series of events including display of various types of aircraft and military weapons featured in the 81st anniversary celebration of the Indian Air Force at its 32 Wing station here today.
The 32 Wing, known as "Desert Warriors", was established in Jodhpur on January 1 in 1971, with the aim of strengthening the South-Western sector.
Being celebrated as "IAF Awareness Day", the objective of this year’s activities is to enhance people's awareness about the IAF and its various operations, and to apprise youth of the various career opportunities in the IAF.
30/09/13 PTI/Daily News & Analysis

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Tatas have been superbly transparent: Tony Fernandes, Air Asia

Air Asia's Tony Fernandes can be a difficult man to pin down for an interview, preferring as he does to operate through Twitter to get his views across - in 140-character bursts of ebullience.
When asked for an interview, he said he'd not given one for "three months" but eventually agreed to answer ET's questions. Owner of Queens Park Rangers football club and former team principal of the Caterham Formula 1 team, Fernandes recently added to his resume by becoming a television anchor, helming the Asian version of The Apprentice.
What transpired at the board meeting? Things that you can share?
It was an excellent meeting. We discussed strategy and we are very focused on changing Indian aviation. I am not going to share any plans yet.
With Air Asia India getting its most important approval, and the rest expected to be a formality, how soon do you expect the airline to fly?
There is no schedule. We will finalise the schedule once we believe we can fly. But yes, we are getting closer.
30/09/13 Satish John & Anirban Chowdhury/Economic Times

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Almost 30,000 passenger and freighter aircraft will be needed by 2032

According to Airbus’ latest Global Market Forecast (GMF) in the next 20 years (2013-2032), air traffic will grow at 4.7 per cent annually requiring over 29,220 new passenger and freighter aircraft valued at nearly US$4.4 trillion. Some 28,350 of these are passenger aircraft valued at US$4.1 trillion. Of these, some 10,400 will replace existing aircraft with more efficient ones. With today’s fleet of 17,740 aircraft, it means that by 2032, the worldwide fleet will double to nearly 36,560 aircraft.
Increasing urbanisation will lead to a doubling of mega cities from 42 today to 89 by 2032, and 99 per cent of the world’s long-haul traffic will be between or through these.
Traffic growth has led to average aircraft size ‘growing’ by 25 per cent with airlines selecting larger aircraft or up-sizing existing backlogs. Larger aircraft like the A380 combined with higher load factors make the most efficient use of limited slots and contribute to rising passenger numbers without additional flights as announced by London’s Heathrow Airport. A focus on sustainable growth enabled fuel burn and noise reductions of at least 70 per cent in the last 40 years and this trend continues with innovations like the A320neo, the A320 Sharklet, the A380 and the A350 XWB.
29/09/13 Next Big Future

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Airlines pass on VAT burden to flyers

Chennai: Flyers may be bearing the burden of the value added tax (VAT) charged by the State government on the increasingly expensive aviation turbine fuel.
Airlines officials said that they are charging more from passengers to make up for the huge amounts spent in refills in Chennai airport. They said that considering the difficulty in getting refills from other destinations, passing on the burden was the one of the ways out.
The State government charges a VAT of 29 percent on Aviation Turbine Fuel (ATF) and an average of 5.5 lakh kl is consumed per month at the Chennai airport, said officials at Airports Authority of India (AAI).
“We can’t get escape refilling the fuel in Chennai. Not only has it become exceedingly difficult to manage but there is not much we can do about it either. We have already made several requests to the governnment to at least bring down the VAT here,” said an official of SpiceJet who did not wish to be named.
30/09/13 The Hindu

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CCI to probe high air fares for 5th time; wants more details

With air fares soaring again, fair trade watchdog CCI is gearing up for a fresh probe into possible cartelisation among airlines to jack up prices, and it wants to gather more details this time around.
The Competition Commission of India (CCI) has already probed "four times" the alleged cartelisation among air carriers to jack up the fares, but could not find any clear evidence of cartel activities, CCI Chairman Ashok Chawla said.
However, CCI has received a fresh complaint earlier this month from the Air Passengers Association of India (APAI), which has alleged that airlines were acting as cartels to push the ticket prices.
Chawla said that CCI would need some more details to re-look at this cartelisation issue "intensively and vigorously" and the APAI would be asked for more details about the required information.
29/09/13 PTI/Business Standard

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‘No issues with Tata-SIA venture’

New Delhi/Chennai: Tony Fernandes, AirAsia India’s largest shareholder, has said he has “no issues” with the Tata-Singapore Airlines project. AirAsia India is a joint venture (JV) between AirAsia, Tata Sons, and Telestra Tradeplace Pvt Ltd, for a new low-cost airline. The joint venture was announced in February. .
Then, earlier this month, Tata Sons announced another JV with Singapore Airlines, this time for a full service airline in India. Tata Sons will be the majority shareholder in this JV.
But Arun Bhatia of Telestra, who had raised questions on Tata Sons tying up with Singapore Airlines after agreeing to the AirAsia venture, was conspicuous by his silence.
28/09/13 The Hindu

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Tata-Singapore Airlines JV: SIA taking another shot at India, despite barriers & restrictions

In the din that followed the unveiling of a partnership between Tata Group and Singapore Airlines (SIA) on September 19 to start a full-service airline in India, an announcement by South East Asia's biggest carrier five days later may have gone unnoticed. SIA and SilkAir, its wholly-owned regional offshoot, said they will increase services between India and Singapore to 107 times a week from 98 across 11 Indian cities, including a third daily service from New Delhi, from October 27, 2013.
Company officials say there is little to link two announcements, but there is no denying that both underscore the importance of India for SIA. Indian aviation has always been a lodestone for the Tatas, but the same is true for SIA. In each futile attempt the Tatas made in the past to enter aviation — creation of a joint venture in the 1990s and purchase of government-owned Air India in 2000 — their partner happened to be none other than SIA.
29/09/13 Binoy Prabhakar/Economic Times

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Foreign tourist influx, festive season may see airfares soar this winter

Mumbai: Airfares will be sky-high during the festive season, especially on flights to and from Mumbai, as airlines have not planned to add many flights for the forthcoming winter schedule.
What is worse, the domestic flights' demand will be high as the weak rupee has turned India into an attractive destination this winter. Currently, the Mumbai airport handles 700 aircraft movements a day, ie that is almost 350 landings and an equal number of take-offs in 24 hours.
"During the winter schedule, from October end to March, the flight movements will go up to 750, which means 25 more flights out of Mumbai in a day," said an airport official. That roughly adds up to about 3,400 extra seats on departure flights per day, which is not a huge number for Mumbai during the Dussehraasshera, Diwali and Christmas X'mas weeks. Last winter, Kingfisher AirlinesBSE 4.99 % suspended its flight operations. The consequent drop in capacity has kept airfares high, except during the lean travel months of June and July.
29/09/13 Economic Times

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Tough business takes a toll on airline CEO salaries

New Delhi: Amid turbulent times in the aviation space, top executives of listed carriers have seen their salaries coming down, with low-cost SpiceJet's CEO taking the biggest cut.
Neil Raymond Mills, who quit as CEO of Spicejet this July, saw his annual pay coming down to Rs. 3.32 crore in 2012-13, from Rs. 4.97 crore in the preceding year, according to company's annual report.
It also said Spicejet's managing director S Natrajhen, however, saw his total remuneration rising to Rs. 89.1 lakh during the last fiscal, from Rs. 34.6 lakh in 2011-12.
Crisis-ridden Kingfisher's CEO Sanjay Aggarwal also saw a marginal dip in his salary to Rs. 3.99 crore in 2012-13, from about Rs. 4.01 crore in 2011-12, the airline's annual report said.
The third listed air carrier Jet Airways has not disclosed the salary of Nikos Kardassis, who resigned as its CEO in June 2013, in its latest annual report.
Jet chairman Naresh Goyal earned a sitting fees of Rs. 60,000 in 2012-13, unchanged from the last year's figures.
29/09/13 PTI/NDTV.com

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New hangar to be ready by Dec, land sought from IAF

Pune: Efforts at the local level are on to accommodate more aircraft. "A new hangar is under construction and is likely to be completed by December. This may accommodate additional 3-4 small aircraft from the present lot. Thus we can address pending requests," said an official. "We have also requested IAF to allot five acres. Talks are on and in case the proposal falls through, we may be able to build three bays that can accommodate 12 aircraft."
But the operators/ owners have a different take on the issue. Wing Commander (retd) W H Marshall, CEO, Poonawalla Aviation, said, "It is high time the government gives priority to aviation.
29/09/13 Indian Express 

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FIPB likely to consider Tata-SIA airline proposal on October 18

New Delhi: The Foreign Investment Promotion Board (FIPB) is likely to consider the proposal of Tatas and Singapore Airlines for a new joint venture on October 18 entailing a foreign investment of USD 49 million.
"The application has been received and would be considered at the next meeting of FIPB on October 18," an official told PTI.
The FIPB, headed by Economic Affairs Secretary Arvind Mayaram, is an inter-ministerial panel for approving Foreign Direct Investment (FDI) across sectors.
In their new venture, Tata SIA Airlines Ltd, Tata Sons would hold 51 per cent stake and Singapore Airlines (SIA) 49 per cent.
The proposed venture would also require approvals from agencies like the DGCA and tax department besides other ministries and government departments.
27/09/13 PTI/Economic Times

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Tata-SIA deal 'no issue for AirAsia India'

Tata Group and Malaysia’s AirAsia, lead partners in a proposed domestic low-cost airline, on Saturday said there were no differences among the shareholders over the former’s tie-up with Singapore Airlines (SIA) for lanching a full service carrier.
The board of AirAsia India, as the Tata-AirAsia venture is called, met in Mumbai on Saturday, a week after co-investor Arun Bhatia hit out at Tata Group for keeping him in dark regarding its SIA joint venture. Tata Sons owns a 30 per cent stake in Air Asia India, while AirAsia and Bhatia’s Telestra Tradeplace have 49 per cent and 21 per cent, respectively. A Tata Group spokesperson as well as Mittu Chandilya, Air Asia India’s chief executive, however, maintained that the issue of Bhatia's opposition to Tata-SIA partnership and his purported threat to buy Tata Sons’ stake in the carrier did not come up for talks in the meeting.
“It was a regular board meeting and we discussed operational plans. We have received a no-objection certificate from the ministry (of civil aviation). I am still aiming for a December launch, but it will be tight,” Chandilya said. He added the airline would not cut corners on safety issues and be prepared to delay launch.  28/09/13 Business Standard

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Survey reveals 34 pc travellers find check-in stressful

New Delhi: One may find flying to a long-distance destination saves a lot time but over a one-third of the travellers find check-in and bag-drop before boarding a plane as the most-stressful part of air travel, according to a survey by aviation think-tank Centre for Aviation and IT solution provider SITA.  
Security and border control is stressful for 18.3 per cent while 12.2 per cent find baggage collection the most cumbersome. And only 33 per cent were aware about self check-in facilities at airports for passengers travelling without baggage.
"Airports made the kiosks available in order to achieve higher ratings in airport service quality surveys and are keen to recover the costs. At some airports, kiosk check-in can be more expensive for the airline than a manned counter, and the facility has therefore not been actively encouraged. Kiosk usage as a result is at around 10 per cent at almost all airports where they are provided in India. Bangalore is the best performer at close to 20 per cent," the survey said.
28/09/13 Deccan Herald

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For a Fistful of sky

They have fought toe-totoe over routes, ticket prices and a piece of the sky for over two decades. Now British Airways (BA) and Virgin Atlantic Airways are ready to slug it out in a new ring - India - with the two long-haul airlines looking to expand their offerings and increase their share of Indian travellers flying to Europe and North America.
"India is a strong focus for us and a big part of our strategy," says Virgin Atlantic CEO Craig Kreeger, who visited the country in late August. Close on the heels of his visit, Kate Thornton, Head of Product and Service at BA, came calling to reinforce the airline's position as the largest British carrier operating from India and to launch its 'To Fly. To Serve' global marketing campaign. "India is a competitive market and there is new competition coming in," she says. "As a brand we need to respond to the competition and this keeps us on our toes."
28/09/13 Manisha Singhal/Business Today

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Foreign tourist influx, festive season may see airfares soar this winter

Mumbai: Airfares will be sky-high during the festive season, especially on flights to and from Mumbai, as airlines have not planned to add many flights for the forthcoming winter schedule.
What is worse, the domestic flights' demand will be high as the weak rupee has turned India into an attractive destination this winter. Currently, the Mumbai airport handles 700 aircraft movements a day, ie that is almost 350 landings and an equal number of take-offs in 24 hours.
"During the winter schedule, from October end to March, the flight movements will go up to 750, which means 25 more flights out of Mumbai in a day," said an airport official. That roughly adds up to about 3,400 extra seats on departure flights per day, which is not a huge number for Mumbai during the Dussehraasshera, Diwali and Christmas X'mas weeks.
29/09/13 Times of India

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India’s Own MALE UAS Still in Development

India’s own medium-altitude long-endurance (Male) UAS has experienced another delay, with first flight now expected toward the end of next year. A senior official from the Defense Research Development Organization (DRDO) told AIN that the Rustom-2 project has suffered from lack of access to technology for sensors and engines. “Requirements for ISR are huge in India, given threats from the border. However, Hale, micro and nano UAVs require powerful algorithms. That is where we require help,” added V.S. Chandra Shekhar, associate director of the DRDO’s Aeronautical Development Establishment (ADE).
Shekhar said that taxi trials of the Rustom-2 are now scheduled for the middle of next year. The Indian Army has ordered 77. While government-owned Hindustan Aeronautics and Bharat Electronics will be taking the lead in manufacturing, the DRDO is also considering opening it to the private sector, Shekhar told AIN.
27/09/13 AINonline

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MiG-29K Carrier Trials Complete

Flight trials of the MiG-29K on the INS Vikramaditya (formerly Admiral Gorshkov) in the Barents Sea have been completed. Deliveries of the naval version of the fighter to India continue, with the carrier to follow on November 15, and the Russian Navy will soon receive its first MiG-29K. The Russian defense ministry confirmed this month that its only remaining carrier, Admiral Kuznetsov, will be modernized to accept MiG-29Ks as well as the Sukhoi Su-25UTG light attack and Su-33 combat aircraft.
The latest series of flights, conducted in August and September, used two factory aircraft (a MiG-29KUB two-seater, side number 204, and a single-seat MiG-29K, side number 941). The dozen flights demonstrated takeoffs and landings at night, and with a maximum practical combat load specified by the Indian customer. These trials followed a previous series of 42 customer-specified missions from the same carrier between June and August last year.
27/09/13 AINonline

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Sriprakash Jaiswal urges Ajit Singh for more Delhi-Kanpur flights

Kanpur: Union Coal Minister and local MP, Sriprakash Jaiswal has written to the Civil Aviation Minister Ajit Singh for increasing the frequency of Delhi-Kanpur air services from the existing two to six days a week.
Emphasising the need for augmenting the flight services, Jaiswal said in a statement here said that Kanpur is the most populated industrial town of UP and traders frequent Delhi for business purposes.
He also requested to change the current flight timings from afternoon to morning as it is causing inconveniences to the commuters. They are forced to travel to Lucknow to board the morning flight to Delhi, he said.
28/09/13 ZeeNews 

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Aerial joyrides planned for tourists

Mysore: After a break of 20 years, tourists will again have the pleasure of enjoying an aerial view of Mysore this Dasara thanks to the joy rides offered by the Jakkur flying training school on its aircraft.
Tourists can opt to fly in a four seater Cessna 172 or a couple of two seater Cessna 152  which will operate for 15 days from October 5 to 14 from the Mandakalli airport in Mysore.
Speaking to Deccan Chronicle, Jakkur flying training school director,  Navinraj Singh recalled that it had last offered such joy rides during Dasara 20 years ago. "Although we began offering joy rides last Dasara, there was not much awareness about them.
28/09/13 Deccan Chronicle

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US aviation regulator concerned over several vacancies in DGCA

New Delhi: US aviation regulator Federal Aviation Administration (FAA) has expressed serious concern over large number of vacancies in DGCA, including top posts of Joint Directors General and Deputy Directors General, at a time when air traffic in India was growing at a rapid pace.
Of the 427 posts sanctioned by the government in 2009 for various directorates of the Directorate General of Civil Aviation (DGCA), it is understood that around 350 posts have lapsed as they were not filled up in so many years.
The vacancies include top technical positions of two Joint Directors General, five Deputy Directors General and over 100 Directors, Deputy Directors and Assistant Directors.
27/09/13 PTI/Economic Times

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India Removes Entry Barrier for Foreign Bizav Crews

Overriding a three-month-old directive that resulted in difficulties and delays in obtaining crew visas and temporary landing permits (TLPs), India’s Directorate General of Civil Aviation (DGCA) has authorized the nation’s consulates abroad to grant business visas to crew of nonscheduled and chartered flights. Not to be confused with the landing permit for the aircraft, the TLP permits customs to allow entrance into India by crewmembers of nonscheduled flights, the DGCA said. The TLP costs $40 per crewmember and should be issued within three days of submission, according to Universal Weather & Aviation.
This comes as a relief to U.S. and European operators that have in the past experienced numerous cancellations stemming from difficulties in obtaining crew visas, since there was no clear policy on what types of visa were to be issued to pilots. Also, crew visas can take up to five weeks to be approved by the Indian government.
26/09/13 Neelam Mathews/AINonline

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New dawn for civil aviation needs to be nurtured

Even in tough times, the efficient and reliable come through. India’s civil aviation industry, plagued by high costs of servicing, fuel, taxes and apron charges, and inferior technology at airports and ground handling, is a case in point.
But even in this sector, the adage holds good. Budget carrier IndiGo Airlines, with a market share of just under 30 per cent, and revenues of Rs 9458 crores, has turned in a handsome profit for FY13, while all other carriers have posted losses.
IndiGo’s Rs 787 crore profit figure is sharply up on the previous year’s 128 crore, and this is the fifth year in a row that it has turned in positive numbers. It prides itself on not cancelling flights and always running them on time.
The flying public, from its numbers, and all other parameters such as customer satisfaction, seems to agree.
Other airlines, possibly embarrassed by their own inferior showing, while admitting IndiGo is indeed well-run, think the lack of transparency (IndiGo is not a listed entity) may explain its stellar profitability.
27/09/13 Gautam Mukherjee/NITI Central

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Air passenger traffic to double: CAPA

Panaji: Welcoming the Union government's move to abolish the rule that allows an airline to fly overseas only if it has a 20-aircraft fleet and has completed five years of domestic operations, CAPA (Center for Aviation, APAC) has predicted a robust growth in India's international passenger traffic, projecting it to double within the next decade.
From 43 million international air passengers in 2013, CAPA forecasts 'a rapid growth' to 90 million by 2023. "India is the only country that follows this 20-aircraft-five-year-rule. By doing away with it, we will be opening our skies to newer players after Jet Etihad and Tata Singapore, making pricing more competitive," said Kapil Kaul, CEO,CAPA, releasing the CAPA-SITA White paper on information technology in Aviation at a conference in Panaji, on Thursday.
27/09/13 Times of India

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Centre expects states to slash taxes on aviation fuel

Panaji: The Centre expects cooperation from the state governments to slash the surcharge and taxation on aviation fuel to control its prices, a senior Civil Aviation Ministry official said here today.
"The biggest challenge faced by the Aviation industry in the country is in the form of fuel prices. We had discussions with the state governments on this front," said Anil Srivastava, Joint Secretary, Ministry of Civil Aviation in a conference here today.
He said the Union government has appealed to the state governments to slash the surcharge and taxation on the aviation fuel which is a state subject.
Some of the state governments have responded positively for our request to cut down on these charges," he said.
Srivastava was addressing Aviation ICT Forum 2013, an annual event organised by stakeholders in the aviation industry.
26/09/13 PTI/Indian Express

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Biman Bangladesh planning to operate to several Indian cities

New Delhi: In an ambitious plan to double its fleet and rapidly expand its network, Biman Bangladesh today said it was aiming at operating to several Indian cities, up from two at present, and add flights to Kolkata in a few months.
Biman, Bangladesh's national carrier, plans to start double dailies from Kolkata by October-end instead of five flights a week now, to enable business travellers from both sides to do their work and return home the same day, airline's MD and CEO Kevin John Steele said here.
The airline, which now operates only to Kolkata and Delhi from Dhaka, was also considering expanding frequencies to the Indian capital and planning to launch operations to Chennai, Bangalore and Mumbai in the next 18 months, he said. Cities like Guwahati and Bhubaneshwar were also on its radar for turbo-prop operations.
27/09/13 Economic Times

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Govt to create unit to keep tab on airlines' financial health

New Delhi: In a bid to avoid repeat of the Kingfisher fiasco, the aviation ministry is going to keep a constant tab on financial health of airlines. Aviation minister Ajit Singh has decided to create a "financial analysis unit" in the ministry that will look for initial signs of strain in an airline - usually delay in payment to employees, airports, oil companies and default in TDS. The unit will then alert the safety regulator to keep a tab on the airline's operations to ensure that safety aspect is not being compromised by the financial crunch.
"Financial health of an airline has a direct bearing on the safety of its operations and therefore needs to be constantly monitored. The directorate general of civil aviation (DGCA) does financial surveillance of airlines. But, it is a technical organization that has to focus on safety and not on economic health of airlines," said aviation minister Ajit Singh.
26/09/13 Times of India

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Indian aviation market grew three times in 10 years: Official

Miramar (Goa): Despite challenging economic conditions, India's aviation market is three times larger than it was 10 years ago, Civil Aviation Secretary K N Srivastava said on Thursday.
Srivastava was speaking at a two-day Aviation Information Communications Technology Forum 2013 that began at a resort here on the outskirts of the state capital.
"Despite challenging economic conditions, India's aviation market is three times larger than it was 10 years ago, and we expect traffic to triple again," Srivastava said.
26/09/13 INAS/Business Standard

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Tata-Singapore Airlines venture reaffirms India aviation potential

New Delhi: A new Indian airline planned by the giant Tata Group and Singapore Airlines reaffirms the nation’s long-term potential as an aviation market, despite the sector’s current financial turbulence, analysts say.
Tata Sons, the holding company of tea-to-software conglomerate Tata Group, and SIA said this week they were setting up a full-service airline after two failed joint bids to take to Indian skies.
“This investment affirms India’s reputation as a lucrative aviation market in the long-run,” Amber Dubey, aerospace head at global consultancy KPMG said.
The $100-billion Tata Group in 1932 pioneered air travel airline in India with Tata Airlines, later taken over by the government and rebranded Air India. It will hold a majority 51-per cent stake in the full-service carrier while SIA will hold 49 per cent as they seek to exploit one of the fastest-growing aviation markets globally.
26/09/13 Oman Tribune

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Hope Tatas taste success with aviation this time: JJ Irani

The All India Management Association (AIMA), the national apex body of the management profession in India, held its 40th National Management Convention in Delhi on Thursday, 26 September. The event was attended by some of the biggest corporate leaders, who discussed several key issues facing the Indian economy currently. CNBC-TV18’s Ronojoy Banerjee and Rituparna Bhuyan gives a report of what the industry stalwarts had to say. The broad theme of the convention this time around was courage in uncertainty. In these times when the economy was going through uncertain times, various industry executives were wondering on how to take bold decision.
Tatas is one such group that showed a lot of courage of entering into aviation space. Industry veteran and an old hand at Tata’s Dr JJ Irani said. “The Tatas have always wanted to be in aviation. Two efforts made by them in the 90’s were foiled. However, this time I hope the two ventures that they have undertaken will succeed.”
26/09/13 moneycontrol.com

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Centre expects states to slash taxes on aviation fuel

Panaji: The Centre expects cooperation from the state governments to slash the surcharge and taxation on aviation fuel to control its prices, a senior Civil Aviation Ministry official said here today.
"The biggest challenge faced by the Aviation industry in the country is in the form of fuel prices. We had discussions with the state governments on this front," said Anil Srivastava, Joint Secretary, Ministry of Civil Aviation in a conference here today.
He said the Union government has appealed to the state governments to slash the surcharge and taxation on the aviation fuel which is a state subject.
Some of the state governments have responded positively for our request to cut down on these charges," he said.Srivastava was addressing Aviation ICT Forum 2013, an annual event organised by stakeholders in the aviation.
26/09/13 Indian Express

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Differential pricing to lift ticket sales through airline websites

Mumbai: Civil aviation secretary K N Srivastava’s order on the transaction fee allowing differential pricing might increase ticket sales through airline websites. This will also help airlines reduce sales and distribution expenses.
According to the order, airlines can offer different fares for those who purchase tickets on its website and those booking from agents. This implies passengers buying tickets from agents will have to pay a slightly higher fare, which includes commission or transaction fee. Differential pricing would encourage people to book tickets from airline websites, according to industry sources.
About 80 per cent of airline tickets sold in India are through travel agents and online portals. The rest is sold through airline websites and booking offices. At present, there is hardly any difference between the fares on airline’s website, online portals and global distribution systems used by agents to book tickets.
A Jet Airways spokesperson said the airline was examining the civil aviation secretary's order. No other airline has responded to email queries on the issue.
26/09/13 Aneesh Phadnis/Business Standard

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'Domestic airlines may have suffered Rs 10,000 crore losses in FY13'

Panaji: The domestic airlines industry is estimated to have posted losses to the tune of over Rs 10,000 crore in the previous fiscal, nearly 18 per cent down from a year ago, according to a report.
"Capa estimated India's airlines industry posted a combined loss of Rs 105 billion in the FY13, down from the approximately Rs 127 billion the previous year," aviation think-tank Centre for Asia Pacific Aviation (Capa) airlines IT services provider SITA said in a report.
The report was released during the day-long Aviation ICT Forum 2013 here.
Observing that more than 40 per cent of these losses were incurred in the last quarter of 2012-13 fiscal alone, the report said, "This squandered the improved performance of the earlier three quarters."
26/09/13 PTI/Economic Times

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More airlines will tap social media for business: Report

Miramar(Goa): Over the next three years, 70 percent of the airlines will use social media to reach out to passengers and offer services, aviation industry specialists in Goa say in a report Thursday.
"India is the world's third-largest social media market with the number of users in urban India estimated at 66 million. Indian carriers and airports are increasingly conscious of their social media footprint and the need to reach out to passengers via social media platforms," the report said.
"Over the next three years, 70 percent of airlines surveyed will use social media to promote their brand and offer reservations, customer relationship management and check-in via social media platforms."
"The social media will also play a vital role in how airports enhance their engagement with passengers, particularly during periods of disruption," the report said.
Co-authored by air-transport specialists at SITA and CAPA, which focus on research and analysis in the aviation sector, the report is based on surveys across the country conducted by the two organisations.
26/09/13 IANS/Business Standard

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375 more charter flights expected to arrive in Goa

Panaji: Tourism minister Dilip Parulekar has said that 375 more charter flights would arrive in the state for the forthcoming tourism season.
With the tourism season starting next month, the tourism ministry is expecting a major increase in charters to Goa. Due to the wars in Syria and Egypt, it is expected that charter flights bound to the two countries will be diverted to Goa.
Tourism minister Dilip Parulekar, while addressing a press conference on Wednesday, said the season is starting next month and they expect to get 1,400 charters as against 1,025 charters that landed in Goa during the last season.
He said that during his Moscow visit last week for the tourism trade fair, he had meetings with major tour operators like Pegas and Corona travel, which he claimed have promised additional business to Goa.
26/09/13 Times of India

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Airlines make hay while clouds cover skies

Ahmedabad: The cancellation of numerous Mumbai-bound trains from the city for the third day in succession due to heavy rains in South and Central Gujarat, has led to a diversion of passengers to airlines. The airlines have registered an increase of 15-20% in passenger traffic.
For the third continuous day, railway traffic remained disrupted and several trains were cancelled. Officials said that, on Wednesday, a breach in the tracks between Vadodara and Bharuch was reported. With only one pair of tracks functioning, many trains had to cancelled.
"With only one track in working condition, important trains like Shatabadi left from Ahmedabad one hour late. Only important trains were allowed to pass. The rest were cancelled," a railway official said. A total of 20 trains were cancelled, three were diverted and another five were terminated before their final destination. Officials said that another 18 trains had to be diverted to alternate routes.
26/09/13 Piyush Mishra/Times of India

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GKN Aerospace officially opens new Bangalore engineering centre

GKN Aerospace officially opens its advanced engineering centre in Bangalore, India in a ceremony yesterday, Wednesday 25th.
The Centre's highly skilled engineering team, which extends the company's one thousand-strong global engineering strength, is already contributing design engineering expertise to the company's international aero-engine activities.
Seventy highly qualified design and development engineers have transferred from Volvo's Bangalore facility to the new Centre located on the old Airport Road at the heart of Bangalore's aerospace and automotive activities. Volvo Aero was acquired by GKN in October, 2012 and incorporated into GKN Aerospace. Over the next eighteen months a local recruitment campaign will increase the workforce in Bangalore to over 100 individuals.
26/09/13 Blue Sky

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Kanda seeks extension of interim bail

New Delhi: Ex-Haryana minister Gopal Kanda, accused in the suicide case of a former airhostess, has sought extension of interim bail which was to expire on October 4.
The application for extension of interim bail has been moved in the court of additional sessions judge M C Gupta.
A sitting MLA from Sirsa, Kanda was granted interim bail by the court on September 5 to attend the state's assembly session on the condition that he would show his attendance in the House.
Kanda had said this being the last session of the House, he needed to attend it to discharge his obligations towards his constituency.
26/09/13 PTI/Times of India

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Tata Group, Singapore Airlines say JV to create jobs, boost aviation sector in India

New Delhi: Making a strong case for approval of their proposed airline JV, Tata Group and Singapore Airlines have said that the joint venture (JV) would create significant job opportunities in India, boost aviation sector and would boost the country's image as an international investment destination.
The two partners have also listed out a number of other economic benefits for the country from their new venture, Tata SIA Airlines Ltd, where Tata Sons would hold 51 per cent stake and Singapore Airlines (SIA) 49 per cent.
"The brand 'SIA' is recognised worldwide and the expansion of the 'SIA' in India will signal the ability of the country to attract leading names from the international circuit to benefit the Indian market and customers.
"High foreign investment inflows would further strengthen the civil aviation sector," the two partners said in an application to the Foreign Investment Promotion Board (FIPB), while seeking approval for USD 49 billion worth FDI by SIA.
The two groups have also emphasised that investment from SIA and operations of the proposed JV would have the potential for significant foreign exchange earnings in India.
25/09/13 PTI/Financial Express

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Will Tata Sons, Singapore Airlines fly high in Indian skies?

The Tata Sons, Singapore Airlines JV reaffirms the long-term potential of the Indian civil aviation and tourism industry. Both seem beset today with man-made problems like excessive taxation, poor infrastructure and cumbersome procedures. All these are likely to change as policy-making in India matures. The presence of Tata Sons, Singapore Airlines will speed that up. It will also give a boost to other leading global airlines currently engaged in conversation with prospective Indian partners.
The exit of Kingfisher Airlines created a void in the full service carrier (FSC) space. India now has only two full service domestic airlines—Air India (AI) and Jet Airways. The Tata Sons and Singapore Airlines JV will enhance options for passengers. The difference in fares on FSC and low cost carriers (LCC) is negligible. With the duration of most domestic flights being around 2 hours, the perceived luxury is for a very short duration. Both Jet and AI are relooking their business:economy seat configuration. Tata Sons and Singapore Airlines will therefore compete with both FSCs and LCCs and it’s all good for the Indian passenger who will now be wooed like never before.
25/09/13 Amber Dubey/Financial Express

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Airlines can charge transaction fee

Mumbai: The civil aviation ministry has decided to allow airlines to charge transaction fee but has insisted that the amount should be part of the airfare and not outside it.
In his order last week civil aviation secretary K N Srivastava ruled that the terms - transaction fee, commission, convenience fee all mean the same which is  payment of remuneration to intermediary.
The order further said all these forms of fees are permissible provided these are shown as a part of the fares and no amount is collected from consumers over and above this.
The  order will also allow airlines to follow  dual pricing (differential fares) "Price differential  can exist between a ticket purchased directly from an airline counter or their website or through its website and through an intermediary,'' the civil aviation secretary  order said.
25/09/13 Aneesh Phadnis/Business Standard

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Government may soon do away with overseas flying rules of aircraft

New Delhi: Government may soon do away with the rule that allows an Indian carrier to fly overseas only after it has flown within the country for five years and has a 20-aircraft fleet, with officials saying there was no justification for such norms to continue now.
A note for the Union Cabinet has been moved by the Civil Aviation Ministry some weeks ago and the matter may be taken up in the next few weeks, they said.
"There is no valid reason for such a rule to exist in the present context," an official, requesting anonymity, said.
At present, only airlines with at least five years of continued domestic operations, a minimum of 20 aircraft and paid-up capital of Rs 100 crore can fly abroad, under the rule that was approved by the Cabinet in December 2004.
25/09/13 PTI/Economic Times

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New copter for Kiran Kumar Reddy on hold

Hyderabad: The finance department has thrust a spoke in Chief Minister N. Kiran Kumar Reddy’s plans to fly high in a new state-owned helicopter. Two months after the Chief Minister sanctioned purchase of the chopper, the finance department has still not cleared the file.
Sources told this newspaper that the Chief Minister wanted a four-member committee, headed by the chief secretary to approve the purchase. The other members of the panel were finance principal secretary, infrastructure secretary and managing director of civil aviation corporation.
When the file was circulated to the finance department, the recently retired bureaucrat V. Bhaskar proposed that the committee should have 10 members, with representatives from civil aviation, intelligence, home department, and provisions and logistics.
25/09/13 Deccan Chronicle

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More fallout ahead of ICAO meet

Reports say the US and Brazil may join India and China and resist any International Civil Aviation Organisation (ICAO) global scheme to reduce airlines' carbon emissions from 2020 that involves compliance with the EU's emissions trading system (EU ETS tax).
The European Commission wants an ICAO statement that allows the EU's regional scheme to continue operating until the end of this decade.
Brazil has described the inclusion of foreign airlines in the EU emissions trading scheme as "an affront to the principles of international law".
"Brazil understands that every country or region has the right to develop market measures for the aviation sector within its jurisdiction, but the
extension of these measures to foreign aviation operators violates the basic principle of international law regarding state sovereignty," said Moreira Franco, Brazil's minister of State and head of the secretariat for civil aviation.
25/09/13 MICEBTN

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Airfare should specify travel agent fee: Govt

Mumbai: The civil aviation ministry has decided to allow airlines to charge a transaction fee but has insisted the amount be part of the airfare and not outside it.
In his order last week, Civil Aviation Secretary K N Srivastava ruled the meanings of transaction fee, commission or convenience fee were the same — payment of remuneration to an intermediary. The order said all these were permissible, if shown as a part of the fare, and no sum was collected from consumers over this.
The  order will allow airlines to follow dual pricing (differential fares) "Price differential can exist between a ticket purchased directly from an airline counter or their website or through its website and through an intermediary,'' the aviation secretary’s order said.
"It is an accepted principle that a passenger should be charged only for the services utilised. Therefore, if he has not availed the services of travel agents, it would not be appropriate to burden with the commission payable to travel agents.”
26/09/13 Aneesh Phadnis/Business Standard

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Governments’ turn: Set a course for lower aviation emissions

May 2013 will be remembered as the month that concentrations of carbon dioxide in the atmosphere burst through the symbolic 400 parts per million (ppm) barrier.
June 2013 will be remembered as the month in which thousands of people died in the floods that ravaged the state of Uttarakhand.
Climate change and the tragedies of Uttarakhand may not seem directly related. But what the models of climate scientists tell us is that as greenhouse gases mount in the earth's atmosphere, the climate will become more variable - and more unpredictable. And that the countries that will suffer the most are tropical countries like India.
Today, the earth's atmospheric reservoir is fast filling with carbon dioxide. We do not know how much space is left but it is not much, certainly not enough to burn even a fraction of the fossil fuels we have left in the ground.
25/09/13 Robert Litterman & Varadarajan V Chari/Economic Times

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Japanese firm looks for tie-up outside HAL

Kochi: Even as a joint working group — set up in the wake of Prime Minister Manmohan Singh’s visit to Japan early this year — grapples with firming up modalities for possible cooperation and joint development of the Japanese ShinMaywa US-2 amphibious aircraft on offer to the Indian Navy, ShinMaywa Industries Ltd has intensified its search to identify an Indian collaborator, mainly for maintenance, repair, and overhaul (MRO) of the aircraft.
The company, however, wouldn’t want to partner with Hindustan Aeronautics Limited (HAL), as the public sector aerospace company “is too big and complicated for us.”
Having earlier shown interest in the Indian Navy’s requirement for nine such platforms, primarily to carry out search and rescue, the company, which has limited presence in the Indian civil aviation market for nearly 20 years, hopes to forge a strategic alliance with India in the larger context of the expanding Indo-Japan relations.
25/09/13 S. Anandan/The Hindu

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Travel company fined Rs 1.4L for leaving clients without hotel accommodation

New Delhi: When two senior officials of a Delhi-based private company booked an eight-day official tour in Germany with a well advertized travel company, little did they know that they would end up without accommodation in Munich during their stay.
Holding Nimble Travels Ltd guilty of deficiency in services for cancelling the duo's hotel accommodation in Munich without their knowledge and leaving them helpless, the district consumer disputes redressal forum (central district) under its president BB Chaudhary has ordered the travel company to pay the complainants Rs 1.4 lakh towards accommodation charges, compensation for causing harassment and mental agony, and litigation expenses.
Nekkanti Ram Rao and G Venkata Rajashekhar, MD and director of Apex Encon Projects Pvt Ltd, had engaged Nimble Travels to book their trip to Munich from April 21 to April 27, 2007 to participate in the Bauma 2007 International Exhibition.
25/09/13 Richi Verma/Times of India

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Minor fire breaks out at Chennai airport

Chennai: A minor fire broke out at the Monopulse Secondary Surveillance Radar (MSSR) building located behind the new fire station at Chennai airport on Tuesday evening.
No one was injured in the incident.
According to the police, around 7.45 p.m. on Tuesday, in one of the rooms of the MSSR building, there was a short circuit in one of the batteries housed there. This caused a fire which subsequently spread and 45 of the batteries burst.  Fire personnel rushed to the spot and extinguished the flames immediately, the sources said.
“The batteries present in the room were spare batteries.  Air navigation services were not affected as this radar is not functional as yet,” said a police officer.
On Tuesday morning officials of Airports Authority of India (AAI) had inspected the new fire station in order to commission it soon.
25/09/13 The Hindu

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20/5 rule to fly abroad not needed: Aviation minister Ajit Singh

New Delhi:  India is finally set to end the discrimination its airlines have faced to fly abroad, even as the red carpet was rolled out for foreign carriers to fly into the country. Aviation minister Ajit Singh has told TOI that the twin conditions that an Indian airline must be five years old and have 20 aircraft in its fleet to start overseas flights are both "unreasonable and not needed".
"This rule was wrong and possibly manipulated in the first place. The 20/5 conditions are not required. Indian airports need to become aviation hubs and our airlines should not face such restriction in flying abroad when foreign airlines do not face any such conditions," Singh said. The change comes as India is set to have a new low-cost carrier AirAsia India and a full service carrier Tata-Singapore Airlines.
The minister pointed out that Indian corporate leaders with one or two private planes can fly abroad whereas scheduled carriers face such hurdles. At present, Indian carriers' market share in international air travel to and from the country is about
24/09/13 Saurabh Sinha/Times of India

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Oommen Chandy sees hope for Air Kerala

Thiruvananthapuram: Kerala Chief Minister Oommen Chandy's pet project to launch Air Kerala got a lease of life after union Aviation Minister Ajit Singh stated that the 20/5 rules need not be applied for India's domestic airlines to fly abroad.
Under the 20/5 rules, an airline keen to fly on international routes is required to have a fleet of 20 aircrafts, and should have completed five years of domestic operations. Ajit Singh, however, said Monday there is no technical reason in asking our airlines to comply with the 20/5 rules to fly abroad.
"It is simply not good for the Indian airline industry," he said.
Speaking to IANS over telephone from Nagpur, Chandy said Kerala has consistently taken up this issue with the centre and things appear to be bright with Ajit Singh's recent statement.
24/09/13 IANS/NYDailyNews.com

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First Vijayawada-based airline to begin operations next month

Hyderabad: Vijayawada-based Lingamaneni Estates and Projects Ltd (LEPL), which announced plans to start a regional airline, Air Costa, on Monday said it has received air operators permit from the Directorate General of Civil Aviation (DGCA).
With this approval, the airline said it has all the necessary permissions in place to start flight operations and intends to start next month. The airline, which is the first to be headquartered in Vijayawada, Andhra Pradesh, said it will start selling tickets soon.
The announcement comes at a time when existing low-cost carriers are under severe pressure, thanks to the rising aviation turbine fuel prices and sliding passenger capacities.
“We will start with two E-170 and two E-190 Embraer E-Jets having twin-class cabin configuration with its own version of comfort and class and competitive fares to provide a happy flying experience,” said Captain K N Babu, CEO, LEPL.
24/09/13 New Indian Express

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Tata-Singapore Airlines joint venture to always remain under Indian control

New Delhi: The Tata group and Singapore Airlines have assured the government that control of their proposed airline venture would always remain in Indian hands, while seeking approval to offer passenger services on both domestic and international routes.
The new venture, proposed to be called Tata SIA Airlines Ltd, would have Tata Sons as the majority partner with 51 per cent stake, while Singapore Airlines would hold 49 per cent stake with $49 million of foreign direct investment (FDI).
The two partners have sought approval from the Foreign Investment Promotion Board (FIPB) for the FDI. The proposed venture would also require approvals from other agencies like the DGFT, DGCA and CBEC, besides other ministries and state government departments.
24/09/13 PTI/NDTV.com

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'AirAsia stake not a hurdle for Tata Sons JV with Singapore Airlines'

New Delhi: Tata Sons' investment in AirAsia India is unlikely to cause a problem for the group's latest joint venture with Singapore Airlines in obtaining a flying licence, sources in Directorate General of Civil Aviation (DGCA) indicated on Monday.
“As long as the two airlines don't have the same board members and management team and the synergies in operations and maintenance are carried out under a proper commercial contracts, there should be no problem,” said a senior DGCA official. “It's not the first time that the same promoter will hold two airline licences. Naresh Goyal's Jet Airways hold's one licence under airline code 9W while its wholly owned subsidiary Jet Lite holds the licence under code S2.”
“The question of monopolising competition also doesn't come into play as these will be two new airlines,” the official added. “If the documents are in order, I do not see Tata-Singapore Airlines facing any major hurdles in obtaining a flying licence.”
24/09/13 Debabrata Das/Financial Express

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Nagaland govt signs MOU for copter service

Kohima: Nagaland government has signed an agreement with a private company for operating helicopters in the state, official sources said Tuesday.
The Memorandum of Understanding was signed by the state government represented by the Commissioner and Secretary of Transport and Thumby Aviation Pvt Ltd represented by its Chairman and Managing Director yesterday.
24/09/13 PTI/ZeeNews

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India's domestic air traffic set to grow at 10%: Airbus

London: India's domestic air traffic is set to grow at the "fastest rate" of 10 per cent against the global average of about five per cent in the next two decades, triggering a demand for over 29,000 additional planes across the world, aircraft manufacturer Airbus said today.
Air travel till 2032 will be fuelled by traffic to and from emerging markets like India, Brazil and China, and world air traffic will grow at 4.7 per cent annually, requiring 29,220 new passenger and freighter aircraft valued at nearly USD 4.4 trillion.
In its latest Global Market Forecast for the next 20 years (2013-2032), Airbus said: "Domestic flows are set to rise strongly, with domestic India growing at the fastest rate (nearly 10 per cent), followed by China and Brazil (seven per cent)."
24/09/13 PTI/Economic Times 

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Negotiating with civil aviation ministry to introduce daily flights to Mysore: Tourism minister

Mysore: Tourism minister RV Deshpande on Tuesday disclosed that the department officials are in close touch with civil aviation ministry to negotiate daily flights to Mysore and introduce small carrier planes to suit the needs of small airports in the state.
Speaking to reporters here after a review meeting of the officials involved with dasara preparations, the minister said airports including one at Mysore are not fit for landing of big planes and many private airlines have no fleet of small carrier planes.
"We are seeking the help of civil aviation ministry in this regard so that they can persuade small carrier owners to introduce daily trips to Mysore and other places in the state," he revealed, adding that no private carrier is ready to lose money if there is no response from the users.
24/09/13 MB Maramkal/Times of India

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Tatas to nominate 4 of the 6 directors

New Delhi:The board of the proposed Tata SIA Airlines Ltd would eventually have six directors, Tata Sons and Singapore Airlines have said in an application to the Foreign Investment Promotion Board.
While four of the directors would be nominated by Tata Sons, the other two would be representatives of Singapore Airlines. The chairman of the board will always be a Tata nominee, the partners have said in their application. The chairman and at least two-thirds of the directors of the Tata-SIA board will be Indians, to conform with foreign direct investment guidelines.
According to the memorandum of understanding between Tata Sons and Singapore Airlines, the board of the proposed joint venture company is initially to comprise three directors. While Tata Sons will nominate Prasad Menon and Mukund Rajan, the third, Mak Swee Wah, is the initial director nominated by SIA. The board will be chaired by Menon. Subsequently, the board would be expanded to six.
Tata Sons and SIA are looking to leverage synergies. SIA would provide access to the new airline to its global network. SIA would additionally share personnel for developing the expertise in the JV company and aid in cost savings in procurement of aircraft, engineering services, spares and infrastructure from its own vendors.
23/09/13 Sharmistha Mukherjee & Surjeet Das Gupta/Business Standard

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Tata Sons-Singapore Airlines to have a 6-member board, Tatas to be represented by Prasad Menon, Mukund Rajan

New Delhi: The proposed Tata Sons-Singapore Airlines venture will eventually have a six-member board consisting of four nominees of the Indian partner and two representatives of the foreign partner, according to a proposal submitted to the Foreign Investment Promotion Board on September 20.
The joint venture company will be called Tata SIA Airlines. Singapore Airlines has sought government permission to induct $49 million to hold a 49% stake in the venture. "Upon receipt of all necessary approvals from the FIPB under this proposal, the JV company shall be capitalised to the extent of 50 crore," said the application. The Tatas will hold a 51% stake.
The proposed airlines would fly within India as well as on international routes, the two partners have said in their proposal.
To begin with, the joint venture company will have a three-member board. While Mak Swee Hah will be Singapore Airlines' sole nominee, Tata Sons will be represented by Prasad Menon and Mukund Rajan. Menon will be the chairman of the company.
23/09/13 Rasul Bailay/Economic Times

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Government to fast-track Tata-SIA airline

New Delhi: Desperate to shrug off charges of inertia, UPA II will fast-track the Tata-Singapore Airlines' proposal to set up a full-service carrier. While top government sources say clearances will be given without any unnecessary delays, the attempt will be to make the proposed airline take off within the remaining tenure of this regime.
The Tata-AirAsia proposal was cleared in about eight months and the Directorate General of Civil Aviation (DGCA) is expected to issue the licence by October-end and it can start flying by December. "If all documents are in place, Tata-SIA proposal will also be given the go-ahead by our government," said a source, admitting an "unnecessary and avoidable" delay in the other aviation FDI of Jet-Etihad.
Sources close to aviation minister Ajit Singh say he is keen to have strong players in India's otherwise cash-strapped airline industry. Also, Tata-SIA and Air India will launch direct flights from India to far-off places and help the airports in metros develop into hubs.
The government is upbeat on Tata-SIA and Tata-AirAsia taking wing as these ventures have very strong international airlines as key partners. While budget airline AirAsia India's 21% stakeholder, Arun Bhatia of Telestra Tradeplace, is reportedly upset due to the Tatas tying up with Singapore Airlines to form a full-service airline, the aviation ministry is not perturbed by the Tatas' holding in both the airlines.
23/09/13 Saurabh Sinha/Times of India

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Tata-SIA tie-up: Servicing an under-penetrated market

New Delhi: The planned entry of Singapore Airlines into the Indian market through a tie-up with Tata Sons could provide the airline a foot-hold in one of the most under-penetrated markets globally.
One needs to step back a little to understand Singapore Airline’s need to find a partner in India. In April, India and Singapore concluded a successful air services bilateral exchange which increased the number of seats that designated airlines could operate between the two countries by 2,160 a week.
The exchange with Singapore was a drop in the ocean as compared with what was exchanged with Abu Dhabi – 50,000 seats in a phased manner over the next three years from the current level of 13,600.
All these developments came in the back drop of a July 2012 request by visiting Singapore Prime Minister Lee Hsien Loong to India when he asked India to further liberalise its air services agreement with Singapore.
Possibly a combination of these factors provided just that little push to Singapore Airlines to go ahead with the marriage with Tata Sons after three unsuccessful attempts over the last two decades.
23/09/13 Ashwini Phadnis/Business Line

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Tata-SIA partnership can be a game changer in overcrowded aviation sector

Six decades after the Indian government divested the Tatas of their majority holding in Air India by nationalising the airline, the announcement by Tata Sons earlier this week for establishing a full-service carrier, in partnership with Singapore Airlines, with a combined investment of $100 million, has not only surprised the aviation industry but evoked tremendous interest.
The warm response to the announcement, which has the potential to be a major game changer, was only to be expected considering that it was the Tata Airlines that had heralded the birth of civil aviation in India in 1932. That previous attempts to enter the airline business had been effectively foiled by certain vested interests, prompting Ratan Tata to emphatically state that the Tata group was no longer interested in forming an airline, also add to the surprise element. Emotional factors apart, the announcement is bound to raise numerous questions in the coming weeks, particularly with regard to its positive and negative impacts on the Indian civil aviation industry.
While it is a foregone conclusion that the airline to be created by the two monolith business organisations -- one running a hugely successful international airline and the other having business interests across the industry spectrum -- will be a formidable one, a question that strikes one is whether the timing for entering the aviation sector is opportune.
22/09/13 Jitender Bhargava/Economic Times

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SIA puts a premium on India

Mumbai: Singapore Airlines' (SIA) partnership with the Tata Group to start a new domestic airline in India declares its designs on Asia-Pacific in a way that its previous alliances and investments have not.
Dependent on international passenger traffic, SIA is trying to reduce its exposure to markets in the US and Europe. Premium travel saw a decline on the back of a weakened Europe. The stronger market of the US is also being served by competition such as Hong Kong's Cathay Pacific with a strategic geographical advantage. Asia-Pacific then, holds the most promise for SIA.
With its $ 49 million investment (49 per cent of the JV) in the full-service airline, SIA will attempt to tap the premium market in the country, dominated by Jet Airways after the collapse of Kingfisher Airlines, and create a hub in New Delhi, to link the Americas with Australia, one of its stronger markets. It would have to do this amidst increasing competition from Gulf carriers and low cost carriers (LCCs). SIA chairman Stephen Lee had hinted at its intention in July when he had said the airline was looking for investment opportunities in India, and that along with China, it was a key market.
23/09/13 Aneesh Phadnis/Business Standard

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Tata JV revives interest in Indian skies

Mumbai: As the aviation industry awaits clarity on the proposed joint venture between Tata Sons and Singapore Airlines for a full-service carrier, and its eventual fallout on the three-way tie-up that the Tatas had earlier forged to operate low-cost airline AirAsia in the country, analysts believe that the twin proposals of the Tatas signal revival of confidence among international carriers looking to invest in India.
According to an industry consultant, who did not want to be named, two more foreign carriers, Emirates and Qatar Airways, were evaluating the market’s potential. “We are under an understanding that both Emirates and Qatar are estimating their entry in India,” he said. Jet Airways is already in a deal to sell 24 per cent stake to Etihad by the end of this month.
So far, few except Tata’s low-cost airline partner Arun Bhatia of Telestra Tradeplace, find problems with India’s biggest corporate group running two independent airline JVs for full-service and no-frills operations, respectively. However, nobody is quite sure how soon the SIA venture would take off.
22/09/13 Soumonty Kanungo/mydigitalfc.com

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MHA opens window for foreign business jets

New Delhi:The ministry of home affairs (MHA) has started issuing temporary landing permits (TLPs) to air crew of foreign-registered business jets.
“The ministry of civil aviation and the directorate general of civil aviation (DGCA) had written to them (to restart doing so), as it was severely affecting the movement of foreign-registered business jets into the country,” said Rajesh Bali, secretary, Business Aircraft Operators’ Association (BAOA).
In May, the MHA had stopped issuing TLPs to air crew of non-scheduled operators (NSOPs) flying into the country, citing security concerns. NSOPs could only fly in with crew visas, which took up to five weeks to process, depending on the country of application. According to industry sources, nearly 60 per cent of the 24,000 general aviation aircraft movements registered every month had been affected due to the sudden change in regulatory norms. Most of these flights were coming from America, Canada and countries in Europe.
MHA, through the bureau of immigration, now issues TLPs for up to 72 hours for air crew of foreign-registered non-scheduled operators (NSOPs) to fly into the country. According to the norms notified this month, TLPs for up to seven days are being issued free of cost. Beyond the initial week, applicants would have to shell out $ 40 for extended stay.
24/09/13 Sharmistha Mukherjee/Business Standard

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Lack of government support hits air connectivity

Bhubaneswar: At a time when the state government is claiming to boost air connectivity by going on a makeover spree of existing airstrips, there is a huge uncertainty over the future of the flights operating within the state.
Sources said the dilly-dallying state of affairs of the government has compelled the lone regional private flying company 'Air Odisha Aviation Private Limited' to shut down its operations, citing losses.
The company was supposed to fly aircraft within the state covering places like Bhubaneswar-Jharsuguda-Rourkela and Bhubaneswar-Jeypore. But it had to ground its nine-seater flight within one month.
The state government allegedly reneged on its promise to compensate the fare of at least four seats, in case they go vacant. The government had initially agreed to reimburse the fare of four seats, which would have cost Rs 4 crore a year. The government agreed to extend the support up to three years to sustain the air connectivity within the state.
"Since the meeting on April 23, the government has been changing its decision. It rejected the reimbursement plan of four seats and reduced it to three seats for two years, instead of three years. Then recently, it decided not to offer reimbursement benefits at all," said an official. Moreover, the government was charging Rs 5,000 for landing of the aircraft, which is very costly, he added.
24/09/13 Riyan Ramanath/Times of India

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MHA opens window for foreign business jets

New Delhi: The ministry of home affairs (MHA) has started issuing temporary landing permits (TLPs) to air crew of foreign-registered business jets.
“The ministry of civil aviation and the directorate general of civil aviation (DGCA) had written to them (to restart doing so), as it was severely affecting the movement of foreign-registered business jets into the country,” said Rajesh Bali, secretary, Business Aircraft Operators’ Association (BAOA).
In May, the MHA had stopped issuing TLPs to air crew of non-scheduled operators (NSOPs) flying into the country, citing security concerns. NSOPs could only fly in with crew visas, which took up to five weeks to process, depending on the country of application. According to industry sources, nearly 60 per cent of the 24,000 general aviation aircraft movements registered every month had been affected due to the sudden change in regulatory norms. Most of these flights were coming from America, Canada and countries in Europe.
MHA, through the bureau of immigration, now issues TLPs for up to 72 hours for air crew of foreign-registered non-scheduled operators (NSOPs) to fly into the country.
24/09/13 Sharmistha Mukherjee/Business Standard

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Give civil aircraft development due importance: Scientist

Bangalore:Civil aircraft development is one field in the country that has been least explored, and renowned scientists and engineers pointed out the possible reasons for it.
Speaking at the Professor Satish Dhawan Commemoration Lecture organised by the Institution of Engineers (India) on Monday, Padma Shri Dr T?S?Prahlad, who was a student of Dhawan, spoke about the challenges India faced in civil aircraft development.
Prahlad said civil aviation should also be given due importance like all other branches of engineering. “Unless private industries join hands, HAL (Hindustan Aeronautics Limited) alone will find it difficult to sustain and keep the industry growing,” he said.
A former scientist from NAL (National Aeronautics Limited), Prahlad said it might probably be the risk factor that acted as a major hindrance to the growth of the industry. “The possible question that arises is ‘why not buy one?’” he said, adding that it was the uncertainity or slow returns and a need for large investments that could stop people from exploring the field.
23/09/13 Deccan Herad

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Move over carpooling, chopper sharing is here

Mumbai: Carpooling to reach your work place is passe, fasten your seat belts to pool a chopper ride. At least that's what dozens of Mumbai-based entrepreneurs with factories in places like Boisar, Vapi, Nasik, Aurangabad have been discovering since the past few months.
Varun Verma (name changed on request), a 45-year old chemical engineer, has been making a grueling weekly road trip from his Nepeansea Road home to Vapi where his chemical unit is based for past 12 years. But not anymore, he has discovered chopper pooling.
"It is a nine hour journey to and fro. I leave home by 6 am and return on the same day by 11 pm as the facilities for overnight stay in Vapi are not very good,'' said Verma. So when he had to ferry a German team from Mumbai to his factory he had to hire a helicopter. But the Rs 2 lakh bill told him flying to work can't become a habit.
The idea of chopper pooling took root a few months later when he attended a seminar where he realised he could buy a seat rather than book an entire chopper. And since May, Verma has been helicopter pooling a Bell 407 twice a month—all he had to do was knock on the doors of neighbouring factories and speak to their owners.
23/09/13 Manju V/Times of India

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Uttarakhand pilot who saved 500 lives grounded as probe on damaged chopper yet to start

Chopper pilot Captain Andrew Manchanda from Mumbai saved about 500 lives in Uttarkhand in less than a week till rough weather on June 28 forced him into a hard landing in Harsil valley. Though no one was injured, the French-made Pawan Hans Dauphin N3 cracked at its rear following a 20-feet free fall and its rotor tail section had to be chopped off. According to the protocol, Captain Manchanda was grounded pending a probe, but the investigation has not yet started even though three months have already passed.
Even the damaged helicopter has been brought back to its Juhu aerodrome hangar. The chopper, all two tonnes of it, was itself air-lifted in a first-of-its-kind delicate "under-slung" operation by an Mi-17 V5 helicopter of the Indian Air Force. It came back on a trailer from Dehradhun last Thursday and engineers are now all set to repair it.
Captain Manchanda (47), a pilot with 23 years of passionate flying behind him, said the very day following the hard landing, he gave his statement to ministry officials in Delhi. The Cockpit Voice Recorder (CVR) and the data flight recorder, two crucial instruments, were removed by the authorities almost immediately. He is, however, yet to hear from the officials, even about the commencement of the probe.
23/09/13 Swati Deshpande/Times of India

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AgustaWestland firm on expanding footprint in India

Kochi: Unfazed by the probe by the Indian and Italian governments into charges of corruption in the Rs. 3,727-crore contract for 12 AW-101 VVIP helicopters for the Indian Air Force, helicopter major AgustaWestland is keen to expand its footprint in the Indian military and civil aviation markets.
“Notwithstanding the current difficulties, we need to expand our presence in India,” said Jackie Callcut, Chief Executive Officer, AgustaWestland India.
Talking to The Hindu on the sidelines of India’s maiden Naval and Maritime Expo (NAMEXPO-2013) that got under way here on Monday, Ms. Callcut, who insisted the company was in India for a ‘long haul’, said AgustaWestland wished to make a mark in the civil aviation sector through its joint venture with Tata Sons to produce AW119 helicopters in India. “We are bringing more technologies into Indian civil aerospace market,” she said, adding India’s ‘troubled transport sector’ could benefit if the moneyed class made a shift to travel by helicopter.
23/09/13 The Hindu

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Tata, SIA incubated venture in April last year

New Delhi: Singapore Airlines (SIA) and former Ratan Tata, former chairman of Tata Group, rekindled talks to set up a joint venture domestic air carrier way back in April-May last year, when the government announced it was planning to liberalise foreign direct investment rules in the aviation sector.
Sources in the know say SIA, being wooed by several Indian groups, made the first move by approaching the Tatas, its old choice for a joint venture. In 1995, now SIA Chairman Stephen Lee Ching Yen, close to Ratan Tata, as a manager in the airlines was closely involved in an aborted Tata-SIA venture for setting up a domestic airline.
The Tata Group was set to hold a 40 per cent stake in that proposed carrier. However, strong opposition from the country’s private airlines made the Union government ask the Tatas to bring down SIA’s share first to half and then to 40 per cent. Later, the government succumbed to  the opposing airlines and decided not to allow foreign investment in Indian airlines.
For the current venture, talks between SIA and the Tatas acquired steam only after September, when the government allowed foreign airlines to acquire up to 49 per cent equity in Indian airlines. Talks with AirAsia Chief Tony Fernandes also began simultaneously. Both SIA and AirAsia were aware of the Tatas’ negotiations with them.
21/09/13 Surajeet Das Gupta & Sharmistha Mukherjee/Business Standard

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IndiGo, GoAir and other 'low-cost' carriers, charging more than full service ones

New Delhi: 'Low-cost' carriers in India are no longer what they claim as they have been found charging fares higher than the full service airlines.
The low cost carriers (LCCs) were found to be charging 10 to 50 per cent more than their full service counterparts on some of the routes in the month of August, which usually is considered a lean period for the aviation sector, a study by aviation regulator DGCA said.
IndiGo, GoAir, SpiceJet and Jet Konnect are the low cost carriers while Air India and Jet Airways are full service carrier. Jet Konnect is the low cost arm of the Jet Airways.
The study was carried out in August by the aviation regulator Directorate General of Civil Aviation to which all airlines have to file their minimum and maximum fare they will charge on specific routes.
Low-cost airlines are usually no-frills and don't offer free meals or in-flight entertainment to passengers while full service carriers (FSC) do.
The LCC quoted more than full service airlines on routes namely Delhi-Goa, Delhi-Visakhapatnam, Mumbai-Bhuj, Delhi- Bhubaneshwar, Port Blair-Chennai, Jabalpur-Delhi and Visakhapatnam-Mumbai.
22/09/13 Indian Express

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The three aces that could make the indian aviation deck heavy

Three established international carriers have announced their interest to enter the domestic Indian civil aviation space since the government decided, in September 2012, to further open up the skies. Fresh competition and a gradual shift towards rationalization of aviation turbine fuel by different state governments will mean more competition, more seats, and hence cheaper air tickets for Indian flyers in the near future.
The proposed move reaffirms the potential offered by the civil aviation market. These three deals, which  are in different stages of approval, could be the game-changer in a market which is staring at cumulative losses of $450 million in the July-September quarter.
Currently, Indian skies are not lucrative for aviation business because of the high cost of jet fuel, bureaucratic and political hindrances and a huge component of tax. Consider this. Indian carriers pay nearly `75,000 per kilolitre for ATF wherease it is sold at `45,000 a kilolitre in Singapore.
Still, the sheer numbers of Indians looking to fly make the sector lucrative for players who have the risk appetite. From a paltry 50.98 million in 2005-06, India’s passenger count is expected to go up to 321.28 million in 2016-17 (end of the 12th Plan).
22/09/13 Sharan Poovanna/New Indian Express

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Sky Is The Limit

According to a recent report by Ascend Advisory, an aviation consultancy firm headquartered in the UK, sales of aircraft across the globe have been hit by the economic downturn. In 2012, business jets saw a ‘low year’ with just 675 deliveries, virtually flat compared to 2011 and only half the number of deliveries five years ago. Also, while North America and Europe remain the two key markets for business jets, their share of deliveries has fallen from almost 90 per cent 10 years ago to just 70 per cent in 2012. The forecast is that growth will come from emerging markets like Latin America and Asia-Pacific, which accounted for 30 per cent of the deliveries last year.
India, according to KPMG, has more than 165 business jets, up from 23 in 2005. Amber Dubey, partner and head , aerospace and defence, KPMG India, says the country has the Asia-Pacific region’s second-largest business jet fleet after China. In India, business jets have grown at a CAGR of 32.5 per cent between 2005 and 2012. Between 2011 and 2012, however, the growth has been barely 7 per cent. “In 2013,” adds Dubey, “the industry expects to add another five to seven business jets”.
He, however, agrees that the downturn has hit the sector adversely, with the demand for business jets expected to remain sluggish in the next 12-18 months due to the “huge rupee depreciation, corporate austerity measures, rising airport charges, high fuel prices, taxes and complex procedures”, besides what Dubey calls “the lack of a suitable government policy framework”. The business could crashland, prompting some companies to cancel orders and, in a worst case scenario, even sell their business.
22/09/13 Abhilasha Ojha/Businessworld

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AirAsia's India partner opposes Tata-Singapore Airlines joint venture

The Tata group's joint venture with Singapore Airlines to set up a full-service carrier in India appeared to have flown into an air pocket on Friday, with one of the Indian conglomerate's partners in an earlier low-cost airline venture hitting out at the decision, calling it "unethical" and saying he was shocked to hear the news.
Arun Bhatia, whose Telestra Tradeplace is one of the partners in AirAsia India, the soon-to-be-operational three-way venture that also includes Malaysia's AirAsia and Tata Sons, told ET NOW that he was completely in the dark about any talks for the full-service carrier between the Tatas and SIA.
"I was shocked to hear about Tata Sons' new JV with Singapore Airlines. Tatas should have informed me also. They kept me in the dark. It is unethical on their part to get into two joint ventures at the same time. How can they maintain secrecy of operations in two airlines and run them profitably at the same time?" asked Bhatia.
Compounding the problem is the suggestion that the Tatas had kept AirAsia informed about its talks with Singapore Airlines, but had not taken into confidence its other partner.
21/09/13 Sumit Chaturvedi/Economic Times

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Tata-SIA venture irks AirAsia JV partners

New Delhi: On a day when union aviation minister Ajit Singh cleared the AirAsia India proposal to launch a low cost airline in India, cracks appeared in the relationship between its joint venture partners - AirAsia, Arun Bhatia and the Tatas. And it's the Tata Sons' tie-up with Singapore Airlines to launch a full service carrier which has reportedly irked Arun Bhatia of Telestra Tradeplace, who is among the three partners in the airline venture.
Bhatia, who has a 21% stake in AirAsia India, has told ET Now that it was 'unethical' of the Tatas not to keep the partners informed about their proposed full service venture with Singapore Airlines. The ET Now report said that Bhatia was willing to buy out Tata Sons' 30% stake in AirAsia India, if offered. The Malaysian LCC has a 49% stake in the budget airline that is expected to be launched by the year-end. Bhatia did not respond to TOI's calls on the issue.
The Air Asia file will now be sent to DGCA for licence issuance, which is just a mere formality. " Singh told TOI on Friday night.
21/09/13 Saurabh Sinha/Times of India

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Tata ventures to lighten the air

New Delhi: Domestic air fares might fall with the new airline venture of Tata Sons and Singapore Airlines (SIA).
These fares had risen 20-25 per cent after the exit of Vijay Mallya's Kingfisher Airlines last October. At its peak, Kingfisher had nearly 30 per cent of overall capacity in the market.
With the launch of Tata AirAsia and Tata-SIA, the added capacity will bring down fares considerably, say observers.
Sharat Dhall, president, Yatra.com, said: "The aviation market in India is under-penetrated and has tremendous potential for growth. Additional capacity will help link more cities and add seats on existing routes. With capacity addition, there would be some rationalisation of fares, which would make air travel more affordable for the common man."
21/09/13 Sharmistha Mukherjee/Business Standard

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Tata-Singapore Airlines tie-up seen reaffirming India aviation potential

A new Indian airline planned by the giant Tata Group and Singapore Airlines reaffirms the nation's longterm potential as an aviation market, despite the sector's current financial turbulence, analysts say.
Tata Sons, the holding company of tea-to-software conglomerate Tata Group, and SIA said this week they were setting up a full-service airline after two failed joint bids to take to Indian skies.
"This investment affirms India's reputation as a lucrative aviation market in the long-run," Amber Dubey, aerospace head at global consultancy KPMG said.
The $100-billion Tata Group in 1932 pioneered air travel airline in India with Tata Airlines, later taken over by the government and rebranded Air India.
It will hold a majority 51-percent stake in the full-service carrier while SIA will hold 49 percent as they seek to exploit one of the fastest-growing aviation markets globally.
"The proposed airline has applied for Foreign Investment Promotion Board approval," a Tata spokesman said.
21/09/13 AFP/Economic Times

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Tata Group, Singapore Airlines is good for Indian passengers, say experts

The aviation sector in India has turned out to be the biggest beneficiary of the relaxation in foreign direct investment (FDI) norms with three big international carriers announcing entry into the Indian market within a year of the norms being changed.
Of the three airlines, AirAsia and Singapore International Airlines (SIA) have tied up with the Tata Group for an entry, while the third, Abu Dhabi-based Etihad Airways has entered into a deal to purchase 24 per cent stake in Jet Airways.
The Tata Group, Singapore Airlines joint venture will have an initial equity capital of $100 million and will be based out of New Delhi. Tata Group will own 51 per cent while Singapore Airlines the rest.
While the viability of a new airline in the already competitive Indian aviation market remains to be seen, analysts predict intense competition in the international sector.
20/09/13 Financial Express

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Government may review 5/20 rule to let more Indian carriers fly abroad

New Delhi: India's cashstrapped aviation sector is celebrating an early Diwali this year with the arrival of deep pocket players like Singapore Airlines, Etihad and AirAsia on the scene. This sudden euphoria may see the government reviewing the current rule that an Indian airline must complete five years and have a fleet of at least 20 aircraft to start international flights.
"So far, low-cost carrier GoAir has applied for relaxation of the norm as it is over five years old but does not have 20 aircraft in its fleet. While we were favorably inclined to lower the 20-aircraft rule and retain the five-year bit, no final view has been taken so far. If the upcoming airlines also seek a review of the policy, we may have a comprehensive relook ," said sources.
21/09/13 Saurabh Sinha/Economic Times

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MHA takes U-turn, charter aircraft to get landing permit

The ministry of home affairs had decided to stop the issuance of temporary landing permit (TLP) to crew members of foreign-registered charter aircraft and, instead, asked them to seek  employment visa to enter the country.
After dna reported on the same and the fact that this was leading to a drop in tourism and business (businessmen and elite tourists had started going to other countries to avoid such restrictions), the decision now stands reversed. Sources in the ministry said the decision had been taken due to security reasons.
In a circular issued recently to all its embassies and consulates the world over, the ministry has said that it will continue to grant TLP to crew members of foreign-registered charter aircraft and private non-revenue flights, subject to regular checks and fee payments.
21/09/13 Shahkar Abidi/Daily News & Analysis

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Tata-Singapore Airlnes pact was months in the making

New Delhi/Mumbai: Key executives familiar with the talks between the Tatas and Singapore Airlnes told ET that the plan for the new airline was first mooted soon after the government cleared 49% FDI in civil aviation in September 2012.
Talks started when Ratan Tata was at the helm and continued through the transition period when Cyrus Mistry took over. Tata gave way to Mistry in December 2012.
The Tata-SIA talks went full steam ahead within days of the FIPB clearing, on March 6, the AirAsia venture. Tata Sons has a 30% stake in AirAsia India. The Tatas had taken Malaysia's AirAsia BhD, the larger partner in the AirAsia India venture, fully into confidence about the Tata-SIA deal.
"Both sides have been comfortable with each other. Government policies delayed the partnership. Once policies became favourable, we started discussions again and closed the deal," said a person involved in the negotiations. A team headed by Tata group's brand custodian Mukund Rajan and the chairman-designate of the new venture Prasad Menon started the negotiations with SIA. "There were a series of meetings in Mumbai and Singapore. Finally, we agreed on a transaction a few days ago," said the person.
20/09/13 Binoy Prabhakar, Arijit Barman & Sabarinath M/Economic Times

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Tatas apply for 'Tata SIA Airlines Limited' name

New Delhi: Starting the process of incorporating a new company for its proposed aviation venture with Singapore Airlines, Tata group has sought to register this entity as 'Tata SIA Airlines Limited'.
The application for registration of this name has been filed with the Registrar of Companies through submission of form '1A', which is the first step towards incorporation of a new company.
The registration is currently "under process" and can be approved soon, as per the latest information available with the Corporate Affairs Ministry. This would be followed by submission of various other documents, including the Article of Association, and details of the company's board of directors, share capital, business areas etc.
Going by the proposed name, the new company is expected to be a 'public limited company', which needs to have a suffix 'limited' to its name. The private limited companies need to suffix their names with 'private limited.
20/09/13 Economic Times

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Analysts welcome Tata-SIA tie-up

Mumbai: The proposed full-service carrier of Tata Sons and Singapore Airlines (SIA) will increase competition in the West-bound routes from India, according to aviation analysts. Nearly 70 per cent of global traffic from India is West-bound – to Middle East, EU and Americas.
“With this venture, Singapore Airlines will get a play in the growing international travel from India. SIA can also operate direct flights to Far East and Australia from India or route them through Singapore,” Amber Dubey, Partner and Head – Aerospace and Defense, KPMG.
Aviation analysts have welcomed this move and said that the deal affirms India’s reputation as a lucrative aviation market in the long run, despite the short- term problems like excessive taxation.
This new joint venture comes on the heels of the Tata group’s partnership with Malaysian low-cost carrier AirAsia to launch a budget airline by the year-end. However, they are yet to get an NOC. “The biggest challenge before the Tatas will be in the boardroom with the two deals. There is likely to be a conflict of interest. But it is still not clear how the AirAsia-Tata joint venture will unfold,” Dubey added. The new tie-up has triggered speculation about a possible exit of Tata Sons from the deal with Air Asia. But Tata Sons maintains that both tie-ups are very much on.
19/09/13 Business Line

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Tata-SIA joint venture bodes well for Indian passengers, say experts

New Delhi: The aviation sector in the country has turned out to be the biggest beneficiary of the relaxation in foreign direct investment (FDI) norms with three big international carriers announcing entry into the Indian market within a year of the norms being changed.
Of the three airlines, AirAsia and Singapore International Airlines (SIA) have tied up with the Tata Group for an entry, while the third, Abu Dhabi-based Etihad Airways has entered into a deal to purchase 24 per cent stake in Jet Airways.
The Tata-SIA joint venture will have an initial equity capital of $100 million and will be based out of New Delhi. Tatas will own 51 per cent while SIA the rest.
While the viability of a new airline in the already competitive Indian aviation market remains to be seen, analysts predict intense competition in the international sector.
20/09/13 Indian Express

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Interest conflict likely in Tata airline deals: Ajay Prasad

Cyrus Mistry has given wings to Ratan Tata's long standing dream. The Tata Group will launch an airline in partnership with Singapore Airlines. The deal is staring at a lot of ‘regulatory unknowns'. Ajay Prasad, former civil aviation secretary says there may be a case of a conflict of interest as both airlines will operate in the Indian market. However, he also feels that Subramanian Swamy’s claims on violation of FDI rules in greenfield investment may not apply here.
Below is the edited transcript of his interview to CNBC-TV18.
Q: Do you see any regulatory challenges for the Tata-Singapore Airlines joint venture given the fact that the Tatas also hold a 30 percent stake in Air Asia India? Could that get in the way of an FIPB nod?
A: As far as the Civil Aviation policy is concerned on foreign direct investment, it permits any airline to come in with 49 percent equity as long as the Indian entities have a majority share. So, that conforms to this. There is suppose there is a likelihood of a conflict of interest because both airlines will be operating in the Indian market one as a low cost carrier and the other probably as a full service carrier. When they go the FIPB, some of these questions will have to clarified on how they intend to work out these arrangements. I am sure that they must have had some preliminary dialogue with Air Asia and with Singapore Airlines. They must be aware of this position and must have worked out some kind of a working arrangement the details of which we do not know as yet.
20/09/13 CNBC-TV18/moneycontrol.com

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Tata versus Tata: Gear up for the dogfight

Mumbai: You have to give it to the Tatas. When everyone has written off the airline sector, the group lined up not one but two alliances in the country. Some might call it infatuation towards a sector that was taken away from them after they nurtured it (Air India was Tata Airlines before it was nationalized) while others might call it a shrewd business decision to invest in a sector which has mostly weak players left.
Whatever may be the reasoning for investment, what has taken everyone by surprise is the group tying up with two companies with completely different business models. While Air Asia, in which the Tata group will not be playing a key operational role, is a low cost airline, Singapore Airlines is a full-service airline.
An aggressive Tony Fernandes would not have let anyone else manage his show in the low cost airline as it requires micromanagement and a tight control of cost. This explains why the Tatas have only 30% in the company.
 However, the Tatas would be in the cockpit in its venture with the Singapore Airlines. Singapore Airlines had made it public that they will be focusing more in the Asia Pacific market rather than their earlier focus in America and Europe.
20/09/13 Shishir Asthana/Business Standard

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Tata-Singapore Airlines & Jet-Etihad deal shows foreign companies are betting on long term potential

Singapore Airlines' decision to launch a full service carrier in India with the Tatas as its majority partner, following UAE national carrier Etihad Airways recent acquisition of 24% stake in Naresh Goyal's Jet Airways, signals the willingness of foreign carriers to do business in India, especially with a long-term perspective.
The Tata Sons-Singapore Airlines venture, where the Tatas will hold 51% stake and Singapore Airlines the remaining 49%, is an extension of the vision of the Tata Group, which forged a tripartite partnership with AirAsia and Arun Bhatia's Telestra Tradeplace for low-cost carrier AirAsia's entry into India.
It also shows that the Tatas want to follow the hybrid business model, of being present in both lowcost and full-service models. Analysts believe that this full-service venture will focus more on west-bound travel while the AirAsia JV will stick to ASEAN routes.
20/09/13 Rajesh Naidu/Economic Times

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