UTC Aerospace Systems gets FAA nod to manufacture products in India

The Indian subsidiary of United States-based UTC Aerospace Systems (UTAS) said the recent approval from the US Federal Aviation Authority to one of its products being manufactured in the country will give a push to Prime Minister Narendra Modi's 'Make in India' campaign. The US regulator has for the first time given approval for two aircraft parts manufactured in India — a four-person life raft developed by the Indian arm of UTAS and nickel-cadmium batteries developed by Hyderabad-based HBL Power Systems.

"Manufacturing for commercial aviation is primarily limited to the US and Europe. An FAA approval to our product is an acceptance of the India manufactured product for the world and will definitely give a big boost to the 'Make in India' initiative, as we will see many more companies applying for such permissions," Chris Rao, vice-president and head of UTAS India told ET.
Rao added that his company will apply for approvals for quite a few other products they manufacture in the country.
04/02/15 Economic Times

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US-India Cooperation on Naval Aviation: Game Changer?

One of the potentially most interesting developments to emerge from President Obama’s recent trip to India was news that the United States and India have decided to embark on cooperative efforts with respect to naval aviation.  Of course, India and the United States already enjoy some degree of collaboration, as the U.S. has assisted the Indian Navy with pilot training and deck management for several years. Still, the open discussion of this relationship implies a more expansive, longer-term cooperative framework than has previous been clear.

India has taken a much different road with its carrier force than the United States. It’s current carriers are transplants from the United Kingdom and Russia, albeit with significant modification.  Instead of pursuing a common design for its three carriers, the Indian Navy has settled on three different designs, with potentially serious implications for compatibility and air crew training. Both INS Vikramaditya and INS Vikrant will use a ski-jump to launch aircraft, a system never employed on a U.S carrier.

It will be interesting to see whether the discussion about carrier cooperation and development simply reaffirms the existing degree of collaboration, or whether it extends to operations and even naval architectures.
31/01/15 Robert Farley/The Diplomat

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Ecuador ‘restricts’ Dhruv choppers

Ahead of India's biggest air expo — Aero India 2015, Bengaluru-based Hindustan Aeronautics Limited (HAL) suffered a major setback with Equador deciding to 'restrict' flying of HAL made Dhruv helicopters following repeated mishaps. The decision comes as a shock at a time when the Indian government is planning and pushing for export of military hardware. Ecuador's move is expected reflect on the quality of aviation components made in India at the upcoming Aero India-2015 where multicrore aviation deals are expected to be struck.
Ecuadorian Air Force had procured seven Dhruv choppers from HAL during Aero India 2009 as part of a deal estimated to cost about US$ 45 million. According to sources, two of the Dhruvs had crashed previously while two choppers met with repeated mishaps in less than a fortnight period. "Three aircraft have had their operations restricted because they are undergoing a complete check," Security Minister Cesar Navas was quoted as saying by El Universo newspaper after the accident on January 27. It was the fourth Dhruv to suffer an accident since 2009.
Dhruv helicopter FAE 605 allegedly caught fire in Ecuador's Amazon region on January 27 after taking off at a military base in Tena, according to local media. Two people were injured in the mishap. Incidentally, this mishap occurred at a time when an Indian team was already there to probe the incident that took place on January 13.
30/01/15 Niranjan Kaggere/Bangalore Mirror

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Tigerair scraps three-year inter-line pact with SpiceJet

New Delhi: Even as the ailing SpiceJet tries to turn the corner, Singapore-based low-cost carrier Tigerair has terminated its three-year inter-line agreement with the domestic airline in less than a year. The tie-up ended earlier this month, mainly because the revenue target could not be met, Tigerair’s director for sales and marketing, Teh Yikchuan, told Business Standard.

Tigerair, which had signed the agreement with SpiceJet in December 2013, sent a termination letter to the latter in December last year, with a 30-day notice period. Singapore Airlines, a 49 per cent stakeholder in India’s newest airline, Vistara, is also the largest shareholder in Tigerair with a 56 per cent stake.

“The SpiceJet inter-line has expired. The numbers are not exactly what we expected. There were not as many connecting passengers as we had originally hoped for, so we decided not to continue with it after about a year. There is a cost to maintaining the agreement; it did not make any sense for us,” Yikchuan said.
29/01/15 Roudra Bhattacharya/Business Standard

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Indian flyers make Dubai world’s busiest international airport

New Delhi: With more than a little help from Indian travellers, Dubai has emerged the busiest international airport in the world. Dubai overtook London Heathrow last year, thanks to a growth of 9.3 lakh flyers to and from the India subcontinent — which was second only to the increase of 11.9 lakh flyers the Emirate saw in passengers to and from Europe.

Dubai International (DXB) handled over 7 crore international flyers last year, while Heathrow — which has been pipped for the first time ever — saw 6.8 crore international travellers. India played an important role in Dubai emerging as the busiest international airport. Dubai's Emirates operates the maximum flights among all foreign airlines that operate to India. It has 185 weekly flights to 10 Indian cities, with the number of weekly flights set to rise to 186 from March 29.
28/01/15 Times of India

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Bangkok flyers land without luggage

Kolkata:  Around 230 passengers from Bangkok realized after landing in Kolkata on Tuesday that their checked-in luggage had been left at Suvarnabhumi Airport.

The airline staff offloaded all the bags from the aircraft belly after 30 passengers had to be taken off the fight as they were carrying cabin luggage beyond the permitted limit. Sources said the errant 30 were stopped at the boarding gate and told that they would only be permitted to travel if they left the bulky hand luggage behind. An argument ensued and the 30 were detained.
28/01/15 Times of India

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Funding for Mactan airport project OKd

Manila: Manila based Asian Development Bank (ADB), the region’s biggest aid provider, has thrown its support behind the upgrading of the Mactan Cebu International Airport (MCIA), enforcing the legitimacy of the project that was hounded by controversies early on.

In a statement, ADB said it had approved a $75-million loan for the expansion and renovation of MCIA to boost passenger traffic at the country’s second-largest airport.

The project is expected to support inclusive growth in the Visayas region, the ADB said. Upgrades for MCIA is the first large scale public-private partnership (PPP) project awarded by the Aquino administration.

The financing for the project also includes debt of P20 billion ($450 million) from a consortium of Philippine banks composed of BDO Unibank Inc.; Bank of the Philippine Islands; Development Bank of the Philippines; Land Bank of the Philippines; Metropolitan Bank & Trust Co. and Philippine National Bank.

The loan from ADB and cofinancing from the consortium of private banks will be provided to GMR Megawide Cebu Airport Corporation, a consortium of India’s GMR Infrastructure Ltd and Philippine construction firm, Megawide Construction Corp., which won the bidding for the expansion and upgrade of the airport.

India’s GMR Infrastructure is the fourth largest private airport operator in the world, while Megawide is recognized as a local leader in the use of cutting edge construction technology.
28/01/15 Paolo G. Montecillo/Inquirer.net

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MD, Kuoni- India clears air about its B2C business unit ‘Exit’ decision

“It is business as usual at Kuoni,” stated Rajeev Wagle, managing director, Kuoni- India, in an exclusive with Express TravelWord. The recent announcement by the Kuoni headquarters (Kuoni’s board of directors and group executive board) based in Zurich to exit from its tour operating activities created a stir in the industry. The company has taken a decision to part with its B2C businesses and focus completely on the B2B and B2G business units namely Global Travel Distribution (GTD), Global Travel Services (GTS) and VFS Global. These core businesses already represent around 60 per cent of Kuoni’s current consolidated turnover. “The decision taken by the headquarters was clearly strategic to accelerate growth and profitability and take the other core business performing units to the next level of growth. M&As, ownership changes are a part of any form of business across sectors, the travel space being no exception,” mentioned Wagle, adding that the headquarters, based in Zurich, will start the formal process of seeking bids and tenders in the coming months.
28/01/15 Reema Lokesh/Financial Express

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Air India cancels New York flights as snow storm hits US

Mumbai:  Air India has cancelled two of its three non stop flights to the US, with blizzard hitting the country's eastern coast. A state of emergency has been declared in North East states of the US.

New York's JFK and La Guardia and Newark airport are impacted, with airlines cancelling hundreds of flights.

Air India operates non stop flights from India to New York, Newark and Chicago while Jet Airways operates one stop flight to Newark (via Brussels).

Air India sources said the airline cancelled its flights to New York and Newark on Tuesday. Affected passengers are being allowed to rebook on alternate dates or take the flight to Chicago without penalty.

The spill over of stranded passengers will continue till Friday as the flight occupancy is about 80% now, sources added.
27/01/15 Business Standard

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2,300 flights cancelled as storm heads for US east coast

New York: Light snow began falling on the east coast on Monday morning, the first signs of a potentially historic blizzard that officials predicted would dump up to three feet in the coming day, snarling transportation.

The National Weather Service (NWS) issued a blizzard warning for New York City and surrounding areas between coastal New Jersey and Connecticut, beginning 1 pm EST on Monday and worsening overnight into Tuesday morning. It warned of two days of winter storms across the East Coast, from Pennsylvania to Maine.

Travel will be extremely dangerous, the service said, as strong, snow-filled winds reduce visibility to near zero.

Airlines have canceled more than 2,300 flights so far, according to the flight-tracking service FlightAware, with more than 600 alone at the three main airports serving New York City.
27/01/15 Reuters/Business Standard

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PAF plane makes refuelling landing in India

A Pakistan Air Force (PAF) passenger aircraft made a refuelling stop at Lucknow on Sunday afternoon.

The Phenom-100 jet, which is used by senior civilian and military functionaries, was on its way to Singapore for inspection when it made the stopover at Chowdhury Charan Singh Airport, Lucknow.

The aircraft remained at the Indian airport for about 50 minutes before leaving for Singapore.

The rare stopover happening in the midst of continuing military skirmishes between India and Pakistan along the Line of Control and Working Boundary and the resulting tensions in ties was blown out of proportion by the media in both countries.

PAF spokesman Air Commodore Syed Muhammad Ali, talking to Dawn, said the break in the journey was planned.

The aircraft crew included five personnel, including the pilots.

“There was no emergency. There was a Pakistani aircraft movement, that is PAAF-854 from Rawalpindi to Lucknow (which) landed at 1201 hours yesterday and departed for Chittagong at 1252 hours,” Indian newswire Press Trust of India quoted Lucknow’s District Magistrate Rajshekhar as having said.
27/01/15 Dawn

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Pakistan aircraft denied landing in Capital

An aircraft of Pakistan Air Force with five military personnel aboard was allowed for an emergency landing in Lucknow on Sunday night because the airport authorities in India turned down their request to allow its landing at the Indira Gandhi International Airport in New Delhi. This decision was apparently taken in view of the presence of US President Barack Obama in the national Capital.

The aircraft was on its way from Rawalpindi to Shah Amanat International Airport, Chittagong, in Bangladesh. The aviation authorities of Pakistan wanted its landing in New Delhi for refuelling.

The plane was there at Lucknow's Chaudhari Charan Singh Airport for about an hour. It resumed its journey after getting fuel at the airport.

It was only on Sunday that R.K. Srivastava, chairman of Airports Authority of India, was in Lucknow to inspect the airport.

If sources are believed, it is a routine matter for flights between Pakistan and Bangladesh to get refuelled in New Delhi. But this aircraft, PAAF-854, was diverted to Lucknow.
27/01/15 Mail Today/India Today

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Etihad Airways changes flight schedules to benefit Indian subcontinent

Dubai: Etihad Airways has announced changes in its flights' timings between Abu Dhabi and North America from March, owing to the increasing demand of travel from the Indian Subcontinent.

The Abu Dhabi-based airways has announced the changes in the flight schedules between its Abu Dhabi hub and Chicago, New York and Toronto, starting from March 29 this year.

"Demand for travel between the Indian Subcontinent and North America continues to grow year-on-year and we are delighted to change our schedule in order to support this requirement and to increase the travel options for our guests," said Kevin Knight, Etihad Airways' Chief Strategy and Planning Officer.

The move is expected to provide convenient options for UAE passengers travelling to North America, enhance overall connectivity for flights to and from the Indian Subcontinent (ISC) and establish new connections to key markets such as Dhaka, Kathmandu, and Kolkata.
27/01/15 PTI/Economic Times

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Jet Airways, Etihad Airways to celebrate Republic Day with attractive offers

Jet Airways, India's premier international airline, today announced a special offer on its domestic and international networks to mark India’s Republic Day. Etihad Airways, the strategic partner of Jet Airways, will also join the celebrations by extending the offer to guests flying on its network from India to the Middle East, Europe and the United States. The three day special fare offers up to 25 percent discount on prevailing lowest published fare and will be available for sale from January 24, 2015 to January 26, 2015.

The offer is applicable for Economy fares on Jet Airways’ domestic network with travel validity from March 1, 2015 to September 30, 2015.

On Jet Airways’ international network the offer is applicable on both Premiere and Economy fares. On Etihad Airways flights, the offer is applicable on Business and Economy fares. Travel validity of the offer on the international routes of Jet Airways and Etihad Airways is February 1, 2015 onward.
26/01/15 India Infoline

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Etihad alters flight schedule to better connect India and America

Etihad Airways has announced a number of schedule changes to the airline’s flights between its Abu Dhabi hub and Chicago, New York, and Toronto, which will start on Sunday, March 29, 2015.

The airline said move was to provide “convenient schedule options for UAE passengers travelling to North America, enhance overall connectivity for flights to and from the Indian Subcontinent, and establish new connections to key markets such as Dhaka, Kathmandu, and Kolkata”.

The new times also all connect with key Etihad Airways’ Indian Subcontinent destinations which include Colombo, Delhi, Karachi, Lahore, and Mumbai.
26/01/15  Emirates 24|7

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Right this way, please

Nepal can look forward to a further boost in tourist arrivals from India following the Indian government’s decision to provide “leave travel concession” to government employees to visit Nepal and other Saarc countries.

Nepal’s tourism industry is naturally agog with anticipation as there are around 2 million government employees down south, and that’s a lot of potential tourists. India is already the largest source market for the country.

Last year, it sent 180,974 air travellers to the Himalayan republic.

According to the Tourism Ministry, the share of Indian visitors in Nepal’s tourism stands at 23 percent. Unfortunately, they are not known for staying long or spending much in Nepal, pointing to an area the tourism industry needs to work on.

In 2013, Indian tourists spent 8.67 days on average in Nepal, putting them among the shortest stayers in Nepal. Of the total Indian arrivals, 142,054 were first time visitors. More than 528,321 Indian tourists enter Nepal through eight border points annually.
26/01/15 Sangam Prasain/E-Kanipur

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Scrap 5/20 rule, reduce taxation to make airlines turnaround

What is 5/20 in Indian civil aviation? Air Corporation Act of 1953 was repealed in 1994 which abolished the monopoly of Indian Airlines and Air India and allowed private airlines to operate in India.

However, Air India maintained its monopoly over international flights as no other airline was allowed to fly abroad. Slowly, domestic airlines led by Jet started demanding that they should also be allowed to go abroad. Since overseas fights involved a bilateral air service agreement between two countries, the airline of a country have to be designated in the agreement.

In order to enable private airlines to go abroad, some criteria was required and this was evolved as the formula of 5/20. This meant that an India airline could qualify for an international flight only if it has completed 5 years of domestic service and has 20 aircraft. This policy formulation was unprecedented as it was not found in any other country. It remains so even now.

Around the time the repeal of Air Corporation Act took place in 1994, the Ministry of Civil Aviation found that private airlines would not undertake unviable routes to regional cities which Indian Airlines was undertaking (after the demise of Vayudoot which is an airline owned by Air India and Indian Airlines) as part of their CSR.
26/01/15 Sanat Kaul/Deccan Herald

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Air India’s London-Mumbai Dreamliner flight diverted after engine malfunction

Mumbai: The 225 passengers of Air India’s Mumbai-bound flight from London, which was diverted to Budapest after an engine malfunction, returned  after a delay of over 13 hours.

The national carrier’s London-Mumbai flight AI-130 departs from Heathrow airport at 1330 hours (local time) and arrives at the airport here at 0400 hours on Friday.

The flight AI-130-D arrived here from Liszt Ferenc International Airport, Budapest at 1702 hours with all 225 passengers, an Air India spokesperson said.

The London flight, which took off from Heathrow Airport at its scheduled time of 1330 hours (1900 hours Indian time) was diverted to the Hungarian capital after one of the aircraft’s engine reported a malfunction.

The plane, a Boeing 787-800 with all the passengers on board, however, landed safely at the Budapest airport at 1752 hours (local time), the airline had said.
24/01/15 Financial Express

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Jet Airways and Etihad Airways launch discounted fares

New Delhi: Private carrier Jet Airways in association with its gulf partner Etihad today announced limited period discounted fares for travel across its network on the occasion of Republic Day.

Besides, the offer will also be applicable on Etihad Airways flights, which holds 24 per cent stake in the Naresh Goyal-promoted airline, for destinations across the US, Europe and the Middle-east, airline said in a statement here.
The three-day offer of 25 per cent discount on tickets, for which the bookings commence tomorrow, is the third in series from the Mumbai-headquartered airline in this year so far.

The offer is applicable for economy fares on Jet Airways' domestic network for travel between March 1 and September 30 (on domestic routes), the airline said in a statement, adding the discount can be availed in both economy and premier fares on the airline's international flights.
23/01/15 PTI/Economic Times

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225 passengers of diverted London-Mumbai Air India flight return

Mumbai: The 225 passengers of Air India's city-bound flight from London, which was diverted to Budapest after an engine malfunction, returned on Friday, after a delay of over 13 hours.

The national carrier's London-Mumbai flight AI-130 departs from Heathrow airport at 1330 hours (local time) and arrives at the airport here at 0400 hours.

The flight AI-130-D arrived here from Liszt Ferenc International Airport, Budapest at 1702 hours with all 225 passengers, an Air India spokesperson said.

The London flight, which took off from Heathrow Airport at its scheduled time of 1330 hours (1900 hours Indian time) was diverted to the Hungarian capital after one of the aircraft's engine reported a malfunction.

The plane, a Boeing 787-800 with all the passengers on board, however, landed safely at the Budapest airport at 1752 hours (local time), the airline had said.
23/01/15 ZeeNews

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SpiceJet dilemma will test global aircraft investments rules

Dublin:  India faces growing pressure over financial uncertainty at budget carrier SpiceJet after leasing company BOC Aviation demanded the return of three leased aircraft, in what is seen as a test of global rules on aircraft investments.

The leasing arm of Bank of China warned in an interview that India's fast-growing airline industry could struggle to attract funds unless India upholds a pact designed to protect the owners of leased jets, widely used across the world.

"SpiceJet is a very frustrating situation," Chief Executive Robert Martin told Reuters.

"Obviously when we lease planes we like people to pay us. And if they don't pay us, then generally the way an operating lessor reacts is by moving its planes to somewhere else in the world."

BOC Aviation said it had asked for three Boeing 737s to removed from the Indian register, a step towards repossession.

The Singapore firm is among half a dozen lessors with exposure to SpiceJet, which is trying to finalise a new shareholder structure and cash lifeline.
23/01/15 Reuters/Business Standard

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Jet privilege appoints Vizeum for its media duties

Vizeum India, a Dentsu Aegis Network company, has been appointed as the media AoR for Jet Privilege, a specialized loyalty and rewards management company which is a joint venture between Jet Airways and Etihad Airways.

S Yesudas, Managing Director Indian Subcontinent, Vizeum, said, “It is an absolute honour for us to be working with a fast growing company like JetPrivilege. Vizeum is an experience-to-believe-it agency. Our DNA is to delight our clients. The JPPL-Vizeum relationship is not limited to the core deliverables of a media agency. We are eager to add a lot more value to the overall business of the client.”
22/01/15 Bollywood Helpline

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SA woman held with contraband at RGI airport in Hyderabad

Hyderabad:  A South African woman was caught reportedly in possession of ephedrine by security officials at RGI Airport on Wednesday.

Airport sources said that Ranlida, 30, who was heading to South Africa, was nabbed after 20kg of ephedrine was found in her luggage during screening.

While it was not clear if she was apprehended in an operation by Narcotic Control Bureau (NCB) or the Director of Revenue Intelligence, airport officials confirmed the development on Wednesday night.

In another instance, an air passenger who landed at RGI Airport from Muscat was nabbed by customs officials for trying to smuggle in 500 grams of gold hidden in a shoe.
23/01/15 Times of India

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Subramanian Swamy tells Supreme Court, govt has given him documents on Jet-Etihad deal

New Delhi: BJP leader Subramanian Swamy today told Supreme Court that the government has furnished him copies of letters concerning Jet-Etihad deal, allegedly written by Indian officials favouring grant of additional air traffic rights to the UAE airline.

“Government has complied with my request to provide me copies of the letters written for the favourable consideration of the request of Abu Dhabi for additional capacity allocation,” Swamy told a bench headed by Chief Justice H L Dattu.

Taking note of his submission, the bench, which also comprised justices A K Sikri and Arun Mishra, asked the BJP leader to file a rejoinder within eight weeks on the contents of the documents.

Swamy had sought direction from the apex court to furnish copies of certain letters which, in his opinion, were essential for adjudication of the petition.

Government supplied him with letters, including one written by then Commerce Minister Anand Sharma to Chairman of Crown Prince of Abu Dhabi on April 5, 2013.

He was also given an April 9, 2013, letter of then External Affairs Minister Salman Khurshid to the UAE Foreign Minister and two letters dated April 15 and 21, 2013, written by M K Lokesh, who was then Indian Ambassador to the United Arab Emirates, to the Ministry of Civil Aviation.
21/01/15 PTI/Financial Express

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Obama in India: Federal Aviation Authority gives nod for upgrading Indian Aviation to category I

New Delhi: The Federal Aviation Authority (FAA) has expedited the process of upgrading India's aviation sector to category I from II in view of US President Barack Obama's state visit to India as chief guest for this year's Republic Day celebrations.

The FAA, which met the Directorate General of Civil Aviation (DGCA) last week, has said that the US regulator would be working faster to ensure that the Indian aviation sector gets upgraded as early as possible.


"An FAA representative, based in New Delhi, have indicated to us that the team from FAA will be visiting India for the final consultations during the middle of February. We should be able to get our Category I status back as soon as consultations get over," said a DGCA official, who did not wish to be identified.

The earlier plan was to upgrade India by March this year. The official said the fact that FAA wants to start the consultative meeting in February is a good enough an indication that the US regulator is expediting the process.
22/01/15 Mihir Mishra/Economic Times

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Mumbai-bound AI plane from London diverted to Budapest

New Delhi: A Mumbai-bound Air India flight from London was diverted to Budapest in Hungary tonight following a technical snag.

The flight landed at Budapest Airport safely and the passengers have been taken care of, an Air India spokesperson told PTI here.

The AI plane took off from London at its scheduled time 1330 hrs (1900 hrs IST) and landed safely in Budapest at 1752 hrs local time (1022 hrs IST), he said.

According to sources, the flight, AI-130 from London to Mumbai, was diverted to Budapest due to technical problem in one of the engines.

Air India is making all arrangements to fly the stranded passengers safely to Mumbai as soon as possible, the spokesperson said.
22/01/15 PTI/Business Standard

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Indian Air Power at Risk as Rafale Warplane Deal Delayed

India’s purchase of 126 Rafale fighter jets from France’s Dassault Aviation SA (AM) is being delayed, even as the South Asian nation struggles for enough squadrons to counter potential threats from China and Pakistan.

The sticking points are the 2007 tender’s $11 billion price tag and India’s requirement for quality guarantees from Dassault for planes made under license locally by Hindustan Aeronautics Ltd., three officials with knowledge of the matter said. They asked not to be identified as the talks are private. India had aimed to sign the contract by the end of last year.

The air force estimates at least 45 squadrons are needed to repel a joint attack from Pakistan and China, compared with a current active strength of 25, which includes 14 squadrons whose MiG-21 and MiG-27 jets are due to be taken out of service starting this year. That shows the deal’s importance for Prime Minister Narendra Modi’s agenda of military modernization. For Dassault, a sale would be its first export of the combat plane.
22/01/15  N.C. Bipindra/Bloomberg Business Week

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Russia and India Defence Ministries to cooperate in air safety

On Wednesday, the Defence Ministries of Russia and India signed an agreement on cooperation in the field of aviation safety in New Delhi. 

Major-General Alexander Berzan, the Chief of Aviation Safety in the Russian Armed Forces, signed the document from the Russian side. The agreement was signed in the presence of defence ministers of Russia and India – Sergey Shoigu and Manohar Parrikar.

The Russian Defence Ministry spokesperson Igor Konashenkov explained that the agreement is based on the provisions of the declaration of strategic partnership between Russia and India signed on October 5, 2000.

He noted that this agreement defines the procedure for the mutual exchange of information on facts and causes of accidents and incidents related to the operation of the specific types of aircraft. Here the two sides also spelled out the principles of mutual assistance in the investigation of accidents and incidents, as well as monitoring compliance with safety requirements during joint bilateral exercises.
21/01/15 Russia & India Report

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BOC Aviation says repo row could hurt Indian airlines

Dublin: India faces growing pressure over financial uncertainty at budget carrier SpiceJet after leasing company BOC Aviation demanded the return of three leased aircraft, in what is seen as a test of global rules on aircraft investments.

The leasing arm of Bank of China warned in an interview that India's fast-growing airline industry could struggle to attract funds unless India upholds a pact designed to protect the owners of leased jets, widely used across the world.

"SpiceJet is a very frustrating situation," Chief Executive Robert Martin told Reuters.

"Obviously when we lease planes we like people to pay us. And if they don't pay us, then generally the way an operating lessor reacts is by moving its planes to somewhere else in the world."

India's Economic Times this week reported lessors wanted permission to retrieve 11 jets.
22/01/15 Tim Hepher/Reuters

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Jet seeks shareholders’ nod to raise $300 m

Mumbai: Jet Airways (India) Ltd has sought shareholders’ approval to raise long-term finance of up to $300 million (around Rs1,850 crore) through issue of non-convertible debentures to other corporate entities, including its strategic partner Etihad Airways. The company’s board had approved the fund-raising in November. The funds will be used to service its debt.

The airline had earlier said it was expecting to report profit by 2017 through a mix of debt restructuring, sale of wide-body planes, improvements in products and international business expansion The fresh round of funding is the biggest after Etihad picked a stake in the airline. Etihad had also helped Jet refinance ?1,800 crore of its high-cost debt. Jet reduced debt from ?10,500 crore to ?9,800 crore by end-July. The annual interest is ?1,000 crore. The airline significantly pared its consolidated net loss to ?43 crore for the second quarter ended September 30, on account of a gain from the sale of its frequent flyer programme and higher passenger revenue. The carrier had reported a net loss of ?999 crore in the corresponding quarter a year ago. Revenue went up 13.7 per cent to ?5,092 crore (?4,480 crore).
20/01/15 Business Line

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Charges against two Guptagate accused dropped

The SANDF has dropped all charges against the Air Force officers indicted for their involvement in the landing of the Gupta family private jet.
The SANDF has withdrawn all charges against Lieutenant Colonel Christine Anderson and the co-accused who were indicted for colluding in the landing of a private jet at a Gupta family wedding in 2013. (Paul Botes, M&G)

All charges against Lieutenant Colonel Stephan van Zyl and Lieutenant Colonel Christine Anderson have been withdrawn, the South African National Defence Union (Sandu) said on Tuesday.

“The military prosecuting authorities have today informed the attorneys of indicted Air Force officers in the Guptagate matter, that all charges are forthwith withdrawn and, therefore, no prosecution will commence against them,” National Secretary Pikkie Greeff said in a statement.
Anderson and Van Zyl were accused of being involved in the landing of a private jet carrying guests to a wedding for wealthy business family the Guptas, at the Waterkloof Air Force base in Tshwane.

“Sandu confirms that both officers have already provided instructions to the Sandu legal team to immediately institute civil law suits against all the state organs which were involved in implicating them.”

The legal team had earlier on Tuesday “demanded” that Van Zyl be reinstated.

The Department of Defence (DOD) said in a media statement that it “can confirm that all charges related to the two officers on their alleged involvement in the landing of a private jet at Air Force Base Waterkloof, have been withdrawn”.
20/01/15 Mail & Guardian

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Airbus team coming, Rafale deal by March end, say sources

Mumbai:  Even as India is to discuss again France the $22 billion deal to supply 126 Dassault Rafale fighter jets to the Indian Air Force, a big team from Airbus is set to land in India on January 21, ahead of US President Barack Obama’s visit. The timing of the visit is significant, say informed sources.

Airbus which had held 46.32 per cent of Dassault Aviation, had sold 8 per cent of the company back to Dassault for $979 million late last year, said sources, adding that most of the parts of the Rafale fighter jets would come from Airbus. Top officials visiting India at this time is aimed at ensuring France’s credibility as a reliable supplier of weapons, according to sources.


The Rafales deal has been hanging fire ever since Dassault Aviation won the contract in 2007. The original conditions had implied production of the initial 18 aircraft in France, with the remaining 108 to be manufactured at the Hindustan Aeronautics Limited (HAL) facility, under a technology transfer agreement.

“The $22 billion order is not the problem. The work share pattern of the 108 aircraft to be made in India is the bone of contention,” said an official in the know, speaking on the condition of anonymity. “Of the 108 aircraft, will HAL manufacture 100 per cent, or 60 per cent, or 30 per cent of each jet, it is being worked out. Since there are several other Indian manufacturers who would supply and manufacture the rest of the parts, their names and work shares are all being sorted out,” said the official.
20/01/15 Amrita Nair/Ghaswalla/Business Line

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Jet Airways seeks nod to raise Rs 1,800 crore from Etihad

Mumbai: Jet Airways has sought approval of shareholders to raise $300 million (Rs 1,800 crore) through issue of non-convertible debentures to strategic partner and co-owner Etihad Airways.

In November, the airline board approved the proposal to raise $300 million in debt from a “shareholder”. The airline's notification in November did not name the shareholder. 

However, the notice to shareholders seeks nod to raise $300 million from Etihad or any other corporate or trust.

Etihad had also helped Jet refinance Rs 1,800 crore of its high-cost debt. Jet has reduced debt from Rs 10,500 crore to Rs 9,800 crore by end-July. The annual interest is Rs  1,000 crore.

Jet cut its consolidated loss by 95 per cent to Rs 43 crore in the July-September quarter of the current financial year from Rs 999 crore a year ago.
20/01/15 Business Standard

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Pakistan's national airline denies threats to its flight operations from Delhi

New Delhi: Pakistan's national flag carrier has denied any disruptions to its flight operations from New Delhi, days after Indian authorities issued summons to it in connection with alleged violation of forex laws.

There was no imminent threat to flight operations, a Pakistan International Airlines (PIA) spokesman was quoted as saying by the state-run Associated Press of Pakistan.

It was reported that PIA might be forced to suspend its operations from New Delhi after blamed by Indian authorities of illegally buying its office building in the Indian capital.

The PIA spokesman said the airline had acquired immoveable property in New Delhi in 2005 for running its offices after completing all necessary formalities.
20/01/15 PTI/Daily News & Analysis

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TCS inks pact with Virgin Atlantic Airways

Tata Consultancy Services, the leading IT services, consulting and business solutions organization, has today announced that it has been selected by Virgin Atlantic Airways (VAA), one of the UK’s leading airlines, to provide fully managed services to transform and optimize its IT processes, applications and infrastructure. TCS will set up a private cloud for Virgin Atlantic and provide services including Infrastructure-as-a-Service, End User Services and Application Support Services across the whole of Virgin Atlantic’s technology landscape.

The initiative is a part of Virgin Atlantic’s strategy to invest in operational efficiencies and innovations to help it maintain its market leadership. The project will create a service that is easy and straight-forward to administer whilst providing VAA with a progressive, industry leading portfolio of IT services. Through this partnership, Virgin Atlantic will also gain access to TCS’ Airline and Digital Innovation Labs, facilities designed to support the development of solutions that address the changing needs and expectations of the new digital consumer.
20/01/15 IndiaInfoLine

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Boeing To Hand Over Nagpur MRO Facility

After many years of delay, aircraft major Boeing is expected to handover the much-awaited maintenance, repair and overhaul (MRO) facility at Mihan SEZ in Nagpur to national carrier Air India by March, according to a state government official.

"The construction of entire infrastructure, including the 1.8-km-long taxi-way and the MRO facility is completed. We expect the handing-over procedure to be completed by March," Maharashtra Airport Development Company General Manager for Marketing S. Sitarasu said.

Sitarasu said the $100-million MRO facility should start commercial operations by early April, if the handing over process gets completed by March.

The Nagpur MRO facility, fully built by Boeing and is spread over 50 acres, is the offshoot of an agreement between Air India and Boeing following the massive Dreamliner orders the national carrier had placed with the US company in 2006.

So far the project, which is expected to be a revenue churner for the loss-making national carrier, has missed several deadlines due to land acquisition and regulatory issues. Its previous deadline was March 2013.
 19/01/15 Business World

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Denying Hub Status to CIAL Spoke in the Wheel for NRKs

Aluva: The failure to accord hub status to the Cochin International Airport, which is fourth largest in the country in terms of international traffic volume, is likely to shatter dreams of several NRKs scrimping their salaries for a journey back home.

Currently, New Delhi and Mumbai are considered international gateways and all IATA fares to and from foreign nations are decided with them as the origin points. The draft civil aviation policy which has proposed a hub and spoke development model has proposed Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad as hubs.

“Going by the draft policy, the cost of air travel is likely to go up for the 60-lakh-strong NRKs, most of who harbour hope of returning to their homeland at least once in three years,” said Ismayael Rawther, NoRKA Roots Director.

Travel industry sources said while Mumbai and Cochin are ‘online’ points for most major carriers across the world, only Gulf carriers treat CIAL as one. “This means that the airlines from Gulf nations consider the airport as a hub,” said Poulose K Mathew, chairman of the Kerala chapter of Travel Agents Federation of India (TAFI).
19/01/15 Vaisakh E Hari/New Indian Express

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Jeep on runway, KLM flight told to hover

New Delhi: A major accident was averted at IGI airport on Sunday morning after a KLM flight was informed by the air traffic control about the presence of an inspection jeep on the runway.

KLM 871, coming from Amsterdam, was asked to hover around the airport after the ATC lost contact with one of its jeeps due to heavy fog at the airport.

"Around 1am, an inspection jeep had gone to the runway to guide an aircraft and because of low visibility conditions we lost contact with it for some time. Meanwhile, the KLM flight approached the ATC seeking clearance for landing. The flight was asked not to land because the ATC was not sure about the position of the jeep," said an airport official.
 The official added that the air traffic control then asked the flight to hover around over the airport and a clearance was given after re-establishing contact with the driver of the jeep.
19/01/15 Times of India

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Emirates to beef up fleet strength, add India flights

Emirates Airlines, looking at adding new Indian destinations, has lined up plans to significantly beef up its fleet strength.

“The delivery of a large number of aircraft is pending,” Essa Sulaiman Ahmad, vice president, Emirates - India and Nepal, said. “Besides, we are always open to procuring new aircraft whenever there is a need and demand.”

The airline currently operates a fleet of 232 aircraft, of which 218 ferry passengers and 14 carry freight.

Ahmad added: “Decisions regarding procurement of aircraft are taken by the highest level of the company’s senior management.”
Top Emirates officials said that delivery for nearly 284 aircraft with a capital outlay of $138 billion is pending as of now. “Emirates, which carried 4.86 million passengers out of India in 2013-14, is confident of boosting those numbers this year and beyond by adding new destinations and increasing frequency,” Ahmad said.
19/01/15  Ritwik Mukherjee/mydigitalfc

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Air India Express to offer online UAE visa service

Dubai — Air India Express, the low-cost arm of India’s national carrier Air India, is set to offer online UAE visa service, the airline’s top officials said in Dubai on Sunday.

Air India Express (AIE) CEO K. Shyam Sundar announced at a Press conference that the airline was in the process of developing the online UAE visa service facility.

Speaking to Khaleej Times later, he said the service is expected to be launched by March 31.

Timed just ahead of summer vacations in Indian schools, the launch of the service is likely to offer a major boost to the airline’s business on the India-UAE sector, where it faces tough competition.

“It will be a great facilitation for people residing here to call their friends and relatives here for short visits,” said Sundar.

“It will even benefit holidaymakers from India to make short visits to Dubai, Abu Dhabi etc,” he said.
19/01/15 Sajila Saseendran/Khaleej Times

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PIL Questions Cancellation of AI's Bahrain-TVM Flight

Kochi:  A public interest litigation (PIL) was filed before the Kerala High Court on Monday questioning Air India's decision to cancel a direct flight operating between Bahrain and Thiruvananthapuram.

The PIL was filed by Puliyot Aboobacker of Naduvannur in Kozhikode, who is working at Manama in Bahrain at present. Air India had been operating the flight since 2004 but decided to cancel it, allegedly without hearing any stakeholders, in 2012, the petition filed through advocate Kaleeswaram Raj said.

Unlike the private airlines operating in and out of the Gulf region, Air India used to sell tickets at competitive prices and thus had been the lifeline of passengers. On a daily basis, 1000-1200 passengers used to travel from Bahrain to Thiruvananthapuram and vice versa. Thiruvananthapuram is the air hub to five districts in Kerala and four districts in Tamil Nadu. Despite the existence of such huge demand, the service was cancelled without any explanation, the PIL said.
19/01/15 Mahir Haneef/Times of India

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Air India passenger faints at TIA, dies

Kathmandu: A passenger about to fly Delhi, India via Air India Flights has died undergoing treatment at a hospital after he fainted at Tribhuvan International Airport (TIA) on Monday.

According to police, Mukhatar Ahamad,45, suddenly  fell unconscious during the security checkup at TIA. He was rushed to the Kathamndu Medical College, Sinamangal.

Doctors pronounced him dead while undergoing treatment at the hospital, informed police.
19/01/15 My Republica

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Emirates Airline launches 13th weekly flight to Kolkata

Emirates airline, a global connector of people and places, on Monday, announced two enhancements to its service to the Kolkata market.Commencing on March 29, the airline will add a 13th weekly flight between the West Bengal capital and its home and hub in Dubai. Operating on Wednesdays, EK 572 will depart Dubai International Airport at 13.00 hours and arrive at Netaji Subhash Chandra Bose International Airport at 19.15 hours.

The return flight EK 573 will depart at 20.30 hours and arrive in Dubai at 00.05 hours.

The inbound service offers convenient connections with several regions within Emirates’ network, including many of the 37 European, 17 Middle Eastern and 20 African cities Emirates serves. With this additional service, Emirates will operate 186 weekly flights across its network of 10 Indian destinations.

Also on March 29, Emirates will start to operate a larger Boeing 777-200ER on the route as flight numbers EK 570 and EK 571 which will offer Emirates’ renowned First Class service. The Boeing is an up-gauge from the existing A330-200, with capacity for 274 passengers; 220 in Economy Class, 42 in Business Class and 12 First Class. Emirates will be the only airline operating a First Class cabin to the city.
19/01/15 Khaleej Times

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PIA not closing office in New Delhi: CAA spokesman

Lahore: Pakistan International Airlines (PIA) will not be closing its office in New Delhi, Civil Aviation Authority spokesman Sher Ali Khan told Geo News on Monday.

Indian authorities had issued a legal notice to PIA to shut its office in New Delhi. In the notice, India officials alleged that the property for PIA office was purchased illegally.

Sher Ali Khan said all legal formalities were completed when the property was purchased in 2005. He added that the matter would be resolved according to the law.

Indian authorities have also not extended the visas of Pakistan’s national carrier staff and issued orders for Station Manager Saeed Ahmed to leave New Delhi.

Foreign Office spokeswoman Tasneem Aslam said the issue of visas for PIA employees in India would be resolved soon. She added that PIA had been directed to initiate litigation on the property issue.
19/01/15 Geo TV

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Duncan Aviation Renews Certification for India

Lincoln, Nebraska: Duncan Aviation's Lincoln, Nebraska, Maintenance, Repair & Overhaul (MRO) facility recently received renewal of its approval by the India office of the Director General of Civil Aviation as an approved aircraft maintenance organization. The certificate is good from Jan. 1, 2015 through Dec. 31, 2015.

According to Chris VanderWiede, Chief Inspector of International Airworthiness, it is important to be able to provide service to all of Duncan Aviation's customers, regardless of location.

"Duncan Aviation continually evaluates its certifications and is constantly communicating with customers and prospects around the world to secure new and maintain current certifications when it makes sense to do so," VanderWeide says.

Duncan Aviation's locations in Lincoln, Nebraska, Battle Creek, Michigan, and Provo, Utah, hold certificates for 10 additional civil aviation authorities around the world. The Lincoln facility has certifications for Argentina, Bermuda, Brazil, Cayman Islands, China, EASA, Mexico, South Africa, Venezuela and now India. The Battle Creek facility has authorizations for Argentina, Bermuda, Brazil, Cayman Islands, EASA, Mexico, South Africa and Venezuela. And the Provo facility has certificates for Brazil, EASA and Mexico.
19/01/15 AviationPros

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Air India Express enhances baggage limit for Oman flights

Muscat: Air India Express has announced enhanced Free Baggage Allowance (FBA) of 30 kilogrammes for all passengers travelling from Muscat and Salalah to its Indian destinations until March 11, a statement from the airline said.

In addition, passengers who have purchased excess baggage of 10 kilograms, along with earlier FBA of 20 kilogrammes will now be entitled to carry 40 kilogrammes (30 + 10).

The airline has also introduced promotional fares from Muscat to Kochi and Thiruvananthapuram.

Air India Express currently operates weekly 19 flights from Muscat to Kerala and Mangalore daily to Kozhikode, four flights (Wednesday, Thursday, Friday and Saturday) to Kochi, four flights (Wednesday, Friday, Saturday and Sunday) to Thiruvananthapuram and four flights (Tuesday, Thursday, Saturday and Sunday) to Mangalore.
17/01/15 Times of Oman

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Pakistani held with 80 lakh Indian rupees

Customs officials arrested a Pakistani national and seized 80 lakh Indian rupees from his possession at Hazrat Shahjalal International Airport this evening.
Imran Mahmud, arrived at the airport from Karachi via Doha by a flight of Qatar Airways around 6:00pm, Kazi Md Ziauddin, a joint commissioner of customs, told The Daily Star.
On information, a team of customs officials challenged the man at green channel and recovered the currencies from a suitcase he was carrying, the official added.
16/01/15 The Daily Star

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Here is why crucial Rafale Jet Deal is stalled

New Delhi: A French delegation will visit New Delhi this month to try to salvage an agreement to supply 126 Rafale fighter jets to the Indian Air Force, in one of the world's biggest defence deals, which has hit a snag over the local assembly of the planes.

India is insisting that France's Dassault Aviation take full responsibility for the production of the aircraft at a state-ran facility in Bangalore under the 2012 bid offer, Indian defence ministry officials said.

France has said it will help Hindustan Aeronautics Ltd stick to delivery schedules, but that it cannot give guarantees for production of the aircraft made at a facility over which it has no administrative or expert control.

Military experts say the deal could cost India $20 billion, double the original estimate, because of the benchmarking of aircraft prices, a sharp drop in the value of the Indian rupee and a roughly 5% annual cost increase.

The Rafale fighter beat the Swedish Gripen, the Russian MiG-35, the US-built F-18 and F-16 and, finally, the Eurofighter, in a decade-long selection process for a new Indian multi-role combat aircraft, as Dassault was the lowest bidder on up-front and lifecycle costs over 40 years.
15/01/15 Daily News & Analysis

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Here is why crucial Rafale Jet Deal is stalled

New Delhi: A French delegation will visit New Delhi this month to try to salvage an agreement to supply 126 Rafale fighter jets to the Indian Air Force, in one of the world's biggest defence deals, which has hit a snag over the local assembly of the planes.

India is insisting that France's Dassault Aviation take full responsibility for the production of the aircraft at a state-ran facility in Bangalore under the 2012 bid offer, Indian defence ministry officials said.

France has said it will help Hindustan Aeronautics Ltd stick to delivery schedules, but that it cannot give guarantees for production of the aircraft made at a facility over which it has no administrative or expert control.

Military experts say the deal could cost India $20 billion, double the original estimate, because of the benchmarking of aircraft prices, a sharp drop in the value of the Indian rupee and a roughly 5% annual cost increase.

The Rafale fighter beat the Swedish Gripen, the Russian MiG-35, the US-built F-18 and F-16 and, finally, the Eurofighter, in a decade-long selection process for a new Indian multi-role combat aircraft, as Dassault was the lowest bidder on up-front and lifecycle costs over 40 years.
15/01/16 Daily News & Analysis

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US eyes drone, C-130 project deals with India for Obama trip

Washington: The United States aims to secure agreements with India to start pilot projects for joint production of drones as well as equipment for transport planes in talks next week ahead of a visit by President Barack Obama, a US industry source said on Wednesday. Frank Kendall, US undersecretary of defense for acquisition, technology and logistics, will be making his fourth visit to India to promote collaboration on defense technologies and co-production of weapons systems in an effort to finalize the projects.

Kendall's spokeswoman Maureen Schumann said he will meet with Defense Secretary Radha Krishna Mathur, Secretary for Defence Production G. Mohan Kumar and Scientific Advisor to the Minister of Defence Avinash Chander.

"His primary objective is to continue momentum on the Defense Trade and Technology Initiative (DTTI), which promotes collaboration on defense technology and enables co-production and co-development of critical defense systems," Schumann said.

An industry source familiar with US-India discussions on the defense initiative said Kendall aimed to finalize two pilot projects, one involving unmanned aerial vehicles (UAVs) and the other involving systems for the C-130 military transport aircraft built by Lockheed Martin Corp.

The source said the drone project involved the RQ-11 "Raven" built by AeroVironment Inc, a small US firm. Raven is the world's most widely used unmanned aircraft, a lightweight plane that can be used manually, or for autonomous operations.
15/01/16 Reuters/Business Standard

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French officials to visit India to rescue stalled Rafale jet deal

New Delhi: A French delegation will visit New Delhi this month to try to salvage an agreement to supply 126 Rafale fighter jets to the Indian Air Force, in one of the world's biggest defence deals, which has hit a snag over the local assembly of the planes.

India is insisting that France's Dassault Aviation take full responsibility for the production of the aircraft at a state-ran facility in Bangalore under the 2012 bid offer, Indian defence ministry officials said.

France has said it will help Hindustan Aeronautics Ltd stick to delivery schedules, but that it cannot give guarantees for production of the aircraft made at a facility over which it has no administrative or expert control.

Military experts say the deal could cost India $20 billion, double the original estimate, because of the benchmarking of aircraft prices, a sharp drop in the value of the Indian rupee and a roughly 5 percent annual cost increase.
15/01/15 Reuters/Times of India

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No FAA safety rating upgrade during Obama's visit; likely only by March

Contrary to expectations, an upgrade of India’s air safety by the US Federal Aviation Administration (FAA) will not happen during US President Barack Obama’s visit here later this month. A return to the previous category-I rating, likely only by March, will depend on the results of a fresh review by FAA officials next month.

Senior officials in the civil aviation ministry told Business Standard FAA officials had pointed to two areas of concern during a safety audit in December last year. While the first was the fact that hiring 75 flight operation inspectors (FOIs) wasn’t completed, the second pertained to safety procedures.

“FAA officials had underlined some pending issues of a routine nature. We have 35 FOIs and expect to complete their hiring, as well as address other requirements, by January-end. The officials have said they will come again in mid-February for a review. So, we are hopeful the category-I status will be restored by March,” said a ministry official.
After an FAA audit of the Directorate General of Civil Aviation (DGCA), conducted under the US agency’s international aviation safety assessment programme in September 2013, FAA had raised 31 areas of concern. It had announced India didn’t comply with international standards, as codified under the Chicago Convention.
14/01/15 Roudra Bhattacharya/Business Standard

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Open Skies Open Opportunities for Embraer in Asia

As the Association of South East Asian Nations (Asean) prepares to partially implement an Open Skies policy by the end of the year, airlines in the region increasingly eye expansion in low- and mid-density cities. Indonesian operator Kalstar Aviation did its part on Tuesday, when it announced a lease deal covering two Embraer E195s with Dublin-based Aldus Aviation. It plans soon to announce routes from Kalimantan, its base.

“We are proud to be the first Embraer operator in Indonesia and we look forward to enhancing our operations,” said Kalstar CEO Andi Masyhur. “The E195 gives us an opportunity to open new routes and provide better connectivity, frequency and passenger comfort.”

Jets in the 70- to 130-seat category will sustain hub-and-spoke efficiency by complementing narrow-body operations and, in the case of Kalstar, ATR turboprop service. “Those roles will generate significant demand for new aircraft in the segment,” according to Embraer’s 2014- to 2033 market outlook. The OEM expects a large share of the 1,540-unit-strong Asia market to go to its E2 Jet family, notwithstanding competition from Mitsubishi MRJ and Sukhoi SuperJet, both of which will primarily serve their home markets, Embraer Commercial Aviation chief commercial officer John Slattery told AIN. In Asia, India’s Air Costa has signed a firm order for 50 E2s—a mix of 25 E190-E2s and 25 E195-E2s—and JAL has signed for 15.
14/01/15 Neelam Mathews/AINonline

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India Attempts to Iron Out Differences with France in MMRCA Deal

An Indian delegation is currently in Paris to iron out differences between Indian and French positions concerning the potential sale of 126 Dassault Rafale fighters to the Indian Air Force.

The Indian Secretary of Defense Radha Krishna Mathur and a senior from Hindustan Aeronautics Limited (HAL) reached France on Monday for two days meeting to meet with their French counterparts.

The key differences concern the price of the fighter plane and the work to be performed at HAL, India where 108 aircraft are to be assembled. "We cannot accept responsibility in the delivery schedule of a public company controlled by the client state, except that a number of conditions are met”, a French website,"Echoes" said quoting an unnamed source.

Both the countries have been holding contract negotiations since 2012 after the fighter aircraft was selected from among five contenders.

The negotiations have lately run into rough weather over a guarantee clause and a steep rise in price.
14/01/15 Defense World.net

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Answers needed for Gupta controversy

 Lawyers for Lts-Col Christine Anderson and Stefan van Zyl will approach a high court if the army does not make a decision about their prosecution over the Gupta controversy soon.

According to a legal letter sent to the SA National Defence Force, which Beeld said it saw, the matter has dragged on for 18 months, Beeld reported on Wednesday.

Last October the army said their lawyers would soon be informed of the director of military prosecutions’ decision.

They were allegedly involved in the landing of a private jet carrying guests to a wedding in the family of wealthy business family the Guptas, at the Waterkloof Air Force base in Tshwane, Pretoria.

There has been no indication of the decision yet.
14/01/15 The Citizen

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French officials to visit India to rescue stalled Rafale jet deal

A French delegation will visit New Delhi this month to salvage an agreement to supply 126 Rafale fighter jets to the Indian Air Force that has hit a snag over the local assembly of the planes, threatening to derail one
of the world's biggest defence deals.

India is insisting that France's Dassault Aviation take full responsibility for the production of the aircraft at a state-ran facility in Bangalore under the 2012 bid offer, Indian defence ministry officials said.

France has said it will help Hindustan Aeronautics Ltd stick to delivery schedules, but that it cannot give guarantees for production of the aircraft made at a facility over which it has no administrative or expert control.

Military experts say the deal could cost India $20 billion, double the original estimate, because of the benchmarking of aircraft prices and a roughly 5 percent annual cost increase.
14/01/15 Reuters/Daily News & Analysis

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IB cites security reasons for off-loading Greenpeace activist

"National security considerations" were cited as the key reason by the Intelligence Bureau (IB) for off-loading an activist of Greenpeace from a London-bound flight even as the agency alleged that her ticket had been purchased in violation of FCRA rules.
The report, prepared by the Intelligence Bureau and submitted to the Home Ministry, said that the look out circular against Priya Pillai was issued by it on January 9, two days prior to her scheduled departure, on "national security considerations", which led to immigration authorities off-loading her from the flight, official sources said. As per guidelines issued by the Home Ministry in 2010, an officer in the rank of Assistant Director in the IB is authorised to issue look out circular for any individual on the basis of inputs received against the person. The guidelines on look out circular was issued by the Home Ministry following a directive of the Delhi High Court after a man, Vikram Sharma, was off-loaded from a flight in April 2008 following a look out circular issued by the National Commission of Women (NCW) over a matrimonial dispute. The High Court had said that a statutory body like NCW did not have the jurisdiction to take such step and asked the Home Ministry to frame the guidelines.
Greenpeace India has to seek permission from the Reserve Bank of India before receiving any foreign contribution following an order of the Home Ministry, the sources said. Purchase of air ticket by the UK chapter of Greenpeace for someone working for the India chapter of the international NGO is amounting to receiving funds from abroad, they said, adding no permission had been sought from the RBI in this case. Pillai, a senior campaigner for Greenpeace India, was stopped at the immigration counter at Delhi airport on Sunday before she was to catch a flight to London to attend a conference there.
Pillai was scheduled to address British parliamentarians on January 14 on the issue of "infringement of rights of forest communities".
13/01/15 Daily News & Analysis

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Gujarat passengers stuck at Heathrow, courtesy Air India

While delegates from abroad and corporates enjoy the warmth of Gujarati hospitality during the twin events of Pravasi Bharatiya Divas and Vibrant Gujarat summit, 30 passengers from the state, including some students, are stranded at Heathrow airport in London since January 10, thanks to Air India's habitual delay. Travelling by Air India flight AI 131, these people are at Heathrow as they missed their connecting flight to Canada. Their parents and relatives have been trying to talk to the airline officials in Ahmedabad, Mumbai, Delhi and London but there is no response from them.

Making conditions worse for the students is that some of them were supposed to report to their college by Monday, failing which they ran the risk of getting their admission cancelled. Keval Chadbar (20), one such student from Ahmedabad, left the city on January 9 morning for Mumbai en route to Canada in Air India flight 131. The flight which was scheduled at 4 am left half-an-hour late and reached Mumbai late. It touched down at Heathrow at 3.30 am, local time, against the scheduled time of 12. "Due to this we missed the connecting Air Canada flight which was scheduled to take off at 3 am.
13/01/15 Hemington James/Ahmedabad Mirror

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US-bound Etihad flights from India to offer preclearance at Abu Dhabi airport

Mumbai: Air travellers on all Etihad Airways flights to the US from this week will be able to avail of the benefits of arriving in the US, having precleared US Customs and Border Protection at Abu Dhabi airport. From January 15, US preclearance will open for the early morning EY103 to New York JFK and EY183 to San Francisco flights, both of which connect with inbound services from Mumbai, Delhi and other cities in India and the Indian subcontinent, as per a release.

The new early morning US preclearance operation complements the mid-morning one, which caters to Etihad Airways passengers on flights to Chicago, Dallas-Fort Worth, Los Angeles, New York JFK, and Washington, D.C., who proceed through the facility.

Peter Baumgartner, Chief Commercial Officer, Etihad Airways, said, “We’re delighted that from this Thursday, all air travellers flying to the US from Abu Dhabi will enjoy the benefits that US customs and immigration preclearance offers. Since its opening in January last year, the US preclearance has been extremely popular with air travellers, particularly those from the Indian subcontinent and Middle East region. More than 325,000 people have passed through the facility, arriving in the US as domestic passengers.”
13/01/15 TravelBizMonitor

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DGCA hopes US President Obama’s visit helps in revocation of FAA downgrade

According to a report by Sharmistha Mukherjee for Indian Express, US President Barack Obama may bring good news for the Indian aviation sector this Republic Day, as his visit coincides with the timing of a written report from the US Federal Aviation Administration (FAA) on the audit conducted last month. Obama is the chief guest at the 66th Republic Day parade.

An internal note by the Directorate General of Civil Aviation (DGCA) says that the initial report on the audit conducted between December 8 and 12, 2014, will be sent by the FAA in over a month. “The FAA team was very impressed with our improvement in processes. We expect that the US President to bring some good news for the aviation sector,” said a senior DGCA official.

The FAA had downgraded India to Category II status in safety oversight capability in January 2014 on two key concerns — lack of training of its officials and lack of full-time Flight Operations Inspectors (FOIs) on DGCA’s rolls. Both these issues have been resolved now.

In December 2014, the FAA audited eight critical areas of India’s safety oversight system — primary aviation legislation, specific operating regulations, state civil aviation systems and functions, qualified technical personnel and their training, technical guidance, licensing, certification, authorisation and/or approval obligations, surveillance obligations, and resolution of safety issues.
10/01/15 Travel Biz Monitor

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Qatar Airways eyes up to 49% stake in IndiGo

West Asian airline Qatar Airways is keen to pick up 49 per cent stake in India's largest low-cost carrier IndiGo Airlines to expand it footprint in Indian aviation market after the new government increased the FDI limit, news agency PTI reported citing the company's top executive.

Qatar Airways, which launched new Airbus A350-900 in Doha on Thursday, has also been rumoured to be in talks with SpiceJet for a deal. SpiceJet is the second-largest budget carrier in the country behind IndiGo and is desperately looking to stay afloat.

"We would be able to deliver what India want faster than all the new entrants in the Indian market as we are already established in the market," Qatar Airways Group CEO Akbar Al Baker told PTI.

Baker had earlier said in mid 2013 that it is in talks with IndiGo for a code-sharing agreement with the Indian airline.
09/01/15 Bhawna Gupta/VCCircle

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Fight temporarily grounded following engine failure

Kochi: The Qatar airways which took off on Friday morning had to be grounded temporarily after the pilot noticed a failure in the flight engine. The plane which got airborne at 4:30 am on Friday had to be brought back to the ground by about 5:30am. There were 250 passengers on board the flight.

Virtually stranded in the Nedumbassery airport, the passengers are uncertain about when they will be able to leave for their destination. The airport officials said that the technical glitch in the plane engine was being looked into.
09/01/15 Kaumudi Online

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SpiceJet regular on payments: BOC Aviation

New Delhi:  Bank of China Aviation PTE Ltd, which has leased three aircraft to SpiceJet, is not unduly worried about the current financial state of the airline, said Robert J Martin, its Managing Director and Chief Executive.
“We took pre-emptive action and did not deliver three other aircraft to SpiceJet. Now, SpiceJet has three aircraft and they are current on payments for these aircraft till the end of December 2014,” Martin told newspersons while boarding the inaugural Vistara flight from Delhi to Mumbai.
Martin said BOC will deliver 13 Airbus 320 aircraft to Vistara by 2016.
“We will also deliver seven NEOs by 2017-18,” he added. Asked how long it would take to deliver the wide-body aircraft, he said it would take at least 18 months.
09/01/15 Ashwini Phadnis/Business Line

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Obama visit likely to see FAA revoking downgrade

US President Barack Obama may bring good news for the Indian aviation sector this Republic Day, as his visit coincides with the timing of a written report from the US Federal Aviation Administration (FAA) on the audit conducted last month. Obama is the chief guest at the 66th Republic Day parade.

An internal note by the Directorate General of Civil Aviation (DGCA) says that the initial report on the audit conducted between December 8 and 12, 2014, will be sent by the FAA in over a month.

“The FAA team was very impressed with our improvement in processes. We expect that the US president might bring some good news for the aviation sector,” said a senior DGCA official, who did not want to be identified.

The FAA had downgraded India to category II status in safety oversight capability in January last year on two key concerns — lack of training of its officials and lack of full-time Flight Operations Inspectors (FOIs) on DGCA’s rolls. Both these issues have been resolved now.
07/01/15 Sharmistha Mukherjee/Indian Express

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CAM: Targeting flight connections to India, Indonesia

Macau’s airport operator said it would try to attract the launching of new flight routes connecting the territory to India and Indonesia this year to first operate on a charter basis, a goal that would see the very first mid-haul destinations linked to the city.
Eric Fong, director of the marketing department with local airport operator Macau International Airport Co Ltd (CAM), said that the company was already in contact with a few airline companies – mostly budget carriers – from India and Indonesia, which had expressed interest in launching routes linking here.
“We have Citilink [an Indonesia-headquartered budget carrier] that shows interest in applying to run charter flights connecting here and to Bali, and another Indonesian carrier that is also interested in running a route that links up to here,” Mr. Fong said.
“India’s SpiceJet is another operator that we’ve always been in contact with, and this year we may come up with a more feasible flight plan; at the same time, we’re also working with Jet Airways [India-based legacy carrier] to see how we can co-operate in running flights”, he said..
Macau’s airport handled a total of 5.48 million passengers last year, representing a year-on-year rise of 9 per cent, CAM’s latest figures show. The main source of the city’s flight passengers are from mainland China, Taiwan and Southeast Asian countries – namely Malaysia, the Philippines, Singapore, Thailand, Indonesia and Vietnam.
“We have facilities and slot time available to accommodate more newcomers to launch flights here”, Fong told. “And Macau’s stable economy - as well as the rise of many new casino-resort projects - are also positive factors that can give airlines confidence in launching flights to here.”
07/01/15 Stephanie Lai/Macau Business Daily

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Stranded BA passengers leave country

Mumbai: The 38 passengers stranded at the Mumbai airport after they missed their transit British Airways flight to London due to a delayed arrival of their Air India (AI) flight from Goa, finally left the country by Monday morning, according to airport sources. While AI had accommodated some of the passengers on its own flights to London, the remaining were put on other international airlines by BA.

According to an AI spokesperson, the airline had accommodated some of the passengers on its London flights from Mumbai and Delhi. “We have flights for London from Mumbai and Delhi leaving at 7:10 am every day and the passengers we accommodated left on Monday,” the spokesperson said. Airport sources said AI flew around four to five such travellers. Around 30 of the passengers were accommodated by BA on Virgin Atlantic flights to London.

“Our flights from Mumbai are incredibly busy at this time of year, and in order to get customers on their way, we booked all affected onto flights operated by both British Airways and other airlines,” a BA spokesperson said. The 30 passengers, all of whom were booked on the BA flight to London at 2.30 am on Sunday, spent an entire day at the airport after their AI flight coming from Goa landed 45 minutes late.
07/01/15 Asian Age

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Flying to Africa just got easier and cheaper

The passengers who are travelling from Mumbai to African destinations have reason to cheer. National carrier Air India (AI) has signed a memo of understanding with Ethiopian Airlines (ET). Being members of the Star Alliance network, AI and ET will explore expanding their agreement to more destinations in Africa and India. Now Air India and Ethiopian airlines code-sharing passengers can explore various African destinations with a single ticket.

Previously, due to inadequate choice, passengers had to use various connecting flights of different airlines which was time-consuming and expensive.

Tewolde Gebremariam, CEO, Ethiopian Airlines told dna that both airlines have already started code-sharing on Kenyan and Tanzanian routes, and would expand the same to entire Africa and beyond the gateway cities of Delhi and Mumbai that Ethiopian airlines currently operates on the India network. Ethiopian airlines covers 49 destinations in the African continent.

Tewolde elaborated, "We are very happy to expand our code-share partnership with Air India by adding domestic points in India and destinations in Africa. There is now benefit not only to the travelling public as a whole but to both airlines. Currently, we have daily flights to both Mumbai and Delhi. Going forward, we plan to have double daily flights on both destinations very soon."
07/01/15 Mewati Sitaram/Daily News & Analysis

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Hijack threat to Delhi-Kabul Air India flight, security beefed up at airports

New Delhi: Intelligence agencies have tipped off India’s aviation authorities about a hijack threat to Air India’s Delhi-Kabul flight following which an alert has been issued and security beefed up further at all Indian airports. The alert was confirmed by sources in the aviation security establishment.

Air India sources said that alerts are passed on from time to time and that the airline takes the alerts seriously but did not comment on this specific threat.

Sources pointed out that Air India currently operates five flights per week from New Delhi to the Afghan capital. The alert comes barely three weeks before the arrival of US President Barack Obama to India on an official visit.

Security agencies are on high alert as Pakistan-based or Pakistan-backed terrorists may look to carry out a massive terror strike just before the high-profile visit to attract global attention.

The threat is also ominous since the last hijack of an Indian plane that of the erstwhile Indian Airlines flight IC-814 — took place in 1999 to Afghanistan. That flight had been hijacked from the Nepalese capital Kathmandu to the Afghan city of Kandahar at a time when the Taliban was in power in Afghanistan.
05/01/15 Deccan Chronicle

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Hijack Alert For Air India's Delhi-Kabul Flight. Taliban, IS Threat, Say Security Agencies

The Delhi airport is on high alert after intelligence agencies warned that a possible hijack attempt might be made on an Air India flight bound for Afghanistan. The threat perception is based on messages that surfaced earlier, indicating that both Islamic State militants and the Taliban may choose to target India, sources told NDTV.

Security agencies have indicated that an Air India flight to Kabul could be targeted as it is the national carrier and senior officials travel on it to Afghanistan.

The fresh alert - issued to the Bureau of Civil Aviation Security - comes in the wake of a general alert issued in view of US President Barack Obama's visit to India later this month. The US President is the chief guest at the Republic Day parade to be held in Delhi on January 26.

Security had already been tightened at the airports across the country.
04/01/15  Sandeep Phukan and Sudhi Ranjan Sen/NDTV

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BA's need for a legacy refresh

Mumabi: It was in 1924 that British Airways (BA), then known as Imperial Airways, made its first survey flight to India. Ninety years later, BA counts the country as its second-biggest overseas market after the US.

But growth in India has its own challenges. India is not a high-yield market (as average fare charged is lower than other markets for the same distance). The competition is only getting intensified with the Gulf airlines challenging its dominance. BA, though blessed with a enviable heritage, has its task cut out.

It seems to have put in place a multi-tiered plan to keep its banner flying high. The immediate step to profitable growth is its deployment of the new Boeing 787 aircraft to Chennai and Hyderabad. The change in aircraft reduces seat capacity (BA Boeing 787 has 214 seats, in contrast to the earlier Boeing 777's 247 seats) but is geared for cost-efficiency. Not only are these more fuel-efficient but serve point-to-point traffic out of London better and require the carrier to fill less seats for transfer traffic (whose yield, or revenue per seat per kilometre is more discounted than point-to-point traffic).

BA flies 49 aircraft a week, twice every day to Delhi and Mumbai, and once daily to Chennai, Bangalore and Hyderabad.
04/01/15 Annesh Phadnis/Business Standard

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British Airways passengers stranded at Mumbai Airport

Nearly 40 British Airways (BA) passengers have been stranded at Mumbai Airport after they missed a connecting flight.

One passenger said children and disabled people were among those forced to sleep on the floor after delays affected the connecting flight.

Musician Sean Read said a "massive shouting match" erupted between staff.

BA said alternative flights had been found and the last passengers should leave on Tuesday.

Mr Read, who is the keyboard player for the Manic Street Preachers, the Rockingbirds and Chrissie Hynde, tweeted that some families had paid up to £5,000 to get home as a result of the problems.

He was among 38 passengers who had flown from Goa to Mumbai with Air India on Sunday night.

Mr Read, from Hackney, east London, said they had missed the connecting BA flight to Heathrow because of a number of problems including "delays getting through security and no walkway being present for us to leave the plane and get into the terminal".

The Heathrow flight was due to depart at 02:30 local time (21:00 GMT on Sunday) and Mr Read said BA was aware passengers were due to board the flight, but the company let the plane take off.
05/01/15 BBC

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Airbus in talks with AP govt for new facility

Hyderabad: French aerospace company Airbus is in talks with the Andhra Pradesh government for a proposed manufacturing facility in Anantapur district.

The State government has proposed the location for the project, which could involve a components manufacturing unit, since it is close to Bengaluru, on the Andhra Pradesh border.

An Airbus delegation held preliminary discussions with Chief Minister N Chandrababu Naidu recently. According to government sources, a team has also been in talks with the Anantapur collector for a 250-acre site for the project.

In a related development, Rahul Bhatia, Group MD of InterGlobe and Chairman of IndiGo Airlines, also met the CM, the Chief Minister’s Office has stated.
04/0/15 V Rishi Kumar/Business Line

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Terrorists may hijack Delhi-Kabul Air India flight, intelligence agencies warn

New Delhi:  Intelligence agencies have warned that a Delhi-Kabul flight may be hijacked by terrorists.

The input is quite specific and also mentions that an Air India flight could be targeted.
A high alert has been sounded after the intelligence input. IGI airport has been alerted and stringent checks of even the staff members have been instructed.

The authorities have put in place multi-level checking and have issued strictures to ensure they are followed judiciously.
An additional ladder-point check has also been made compulsory. The security checks are expected to take more time now. Sources said that the ground staff has been asked to thoroughly check all cabin baggage once the passengers boarded.
04/01/15 Raj Shekhar/Times of India

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Rapid growth leaves Asian airlines grappling for pilots

New York:  Every week, a combined total of 28 new planes roll off the assembly lines at Airbus, Boeing, Bombardier and Embraer factories – the fastest production rate in the history of commercial aviation. Most of those aircraft feed the insatiable demand in Asia.

The rapid growth of Asian airlines is helping bolster economies and change lifestyles, but it’s also creating a daunting safety challenge as more passengers head into an increasingly crowded airspace.

Much of the boom has been driven by the surge in popularity of Southeast Asia’s budget carriers, such as AirAsia, whose Flight 8501 crashed into the sea Dec. 28 on its way from Surabaya, Indonesia, to Singapore. It was not immediately clear exactly what happened to the plane, but the aviation disaster has put a new spotlight on the obstacles that lie ahead for the booming region.

As Southeast Asia’s economies grow, creating a burgeoning middle class, more people have the appetite to travel – and airlines are struggling to ensure that their training and safety standards keep pace with the demand.

There are currently 1,600 aircraft operating in Southeast Asia, said Brendan Sobie, analyst at the CAPA Centre for Aviation, a consultancy in Sydney. “It is the only region in the world with as many aircraft on order as in service,” he said in an email. “So the growth seems set to continue.”

For each new plane, airlines need to hire and train at least 10 to 12 pilots, sometimes more, according to industry experts. The figure is so high because planes often fly throughout the day and night, seven days a week, while pilots need sleep and days off.
04/01/15 David Koeing/AP/Journal Gazette

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Ball is in France's court, says India on $20 billion Rafale fight jet deal

New Delhi: The multi-billion dollar Rafale fighter jet contract with France has run into rough weather over a guarantee clause and steep rise in price with India making it clear that the ball is in France's court as it looks at the option of buying more Russian Sukhoi-30 MKI warplanes as a back-up plan.
India is insisting that Dassault Aviation, which manufactures Rafale, cannot renege on the Request for Proposal (RFP) clauses, which it had initially agreed to. The situation has come to such a level that France has been forced to send an empowered delegation later this month to "solve all remaining issues" to salvage the contract.
A top Defence Ministry official had this week admitted that there were problems and said India could consider buying more Russian-made Sukhoi-30 planes if the proposed deal with France collapsed. Recalling the last month's meeting between Defence Minister Manohar Parrikar and his French counterpart, sources said French "were told categorically to stick to the RFP".
04/01/15 First Post

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Airbus to set up shop in Anantapur

Anantapur: Airbus, one of the world's leading commercial aircraft manufacturers, it is reliably learnt, is looking to set up shop in Anantapur district of Andhra Pradesh.

Speaking to The Hindu, the Anantapur Collector, Solomon Arogyaraj, said that the officials of Airbus had indeed approached the State government which had offered them 250 acres of land near Palasamudram village of the Gorantla mandal.

The site is on the Hyderabad- Bengaluru National Highway, 80 km from Anantapur town and about 90 km from the Bengaluru.
03/01/15 VK Rakesh Reddy/The Hindu

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Former TSA screner convicted of stealing cash from passengers

A former Transportation Security Administration officer assigned to John F. Kennedy International Airport was convicted last week of grand larceny and other charges for stealing $10,000 cash from two passengers traveling in December 2011 and January 2012, according to Queens District Attorney Richard Brown.

Alexandra Schmid, 34, of Brooklyn, was convicted last Wednesday following a nearly four-week bench trial before Acting Queens Supreme Court Justice Joel Blumenfeld, who found her guilty of third-degree grand larceny, third-degree criminal possession of stolen property and official misconduct. She faces up to 14 years in prison when she is sentenced on March 13.

According to trial testimony, Schmid was on duty on Dec. 9, 2011 when Dr. Imrana Ali and her family passed through security before boarding a plane for India. Schmid separated the passengers from their belongings for approximately 15 minutes, and when the passengers collected their bags, she acted rude and strangely while insisting she hadn’t touched their things. The family then rushed to board their flight and that is when Ali realized $6,000 cash had been taken from her husband’s jacket pocket.
01/01/15 The Forum

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India's GPS freebie for neighbours soon

With the prestigious Gagan project expected to be rolled out by the civil aviation ministry early this year, India plans to use it as a 'goodwill gift' by offering it to neighbouring countries, as a strategic move to counter China's influence.

Prime minister Narendra Modi recently held meetings with high-ranking officials from Indian Space Research Organisation (Isro) and Airports Authority of India (AAI) to discuss the possibilities of taking the services across the border.

Gagan, which stands for GPS Aided Geo Augmented Navigation, is a satellite-based navigation system which provides autonomous, high precision geo-spatial location information of the user in terms of latitude, longitude and height along with velocity and time. It covers large areas of airspace formerly not served by other navigational aids and its benefits extend beyond aviation — to all modes of transport, including maritime, highways and railroads. Furthermore, it can also be used in surveying, precision farming, more robust localisation monitoring which is expected to provide better control and support to law enforcement agencies and enhanced town-planning management.
02/01/15 Shahkar Abidi/Daily News & Analysis

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Recklessness in loan agreements: A case of the Aviation Sector

Many governments worldwide are now divesting from airports development and engaging private companies to develop and run them for better services and to reduce waste of government resources.
UK, Saudi Arabia, Brazil, India, Singapore, Argentina, Peru, Spain, Gabon and recently Zimbabwe are among the growing list of countries that have privatised their aviation sector.
Nigeria plans to privatise or concession her airports in 2015 after an expensive remodelling programme that gulped billions of naira, sparking criticisms from citizens.
Even more ridiculous, according to some critics, is that prior to the commencement of the privatisation in the sector, government has gone on a borrowing spree to develop terminals it will eventually manage through the Federal Airports Authority of Nigeria (FAAN).
The Nigerian government last year took a $500 million loan from the Export-Import Bank of China to fund new terminals in four cities including the capital, Abuja, the commercial hub of Lagos, the southern oil centre of Port Harcourt and the northern city of Kano. The contract was won by China Civil Engineering Construction Corporation.
The facility was obtained on a concessionary interest rate of 2.5 per cent, repayable in 20 years with a grace period of seven years.
The rationale behind obtaining some of these loans in the past has often been contentious given the fact that most times these borrowings which are done to improve structures, only end up having these structures completely derelict and mismanaged.
The level of decadence of national assets, such as stadia, refineries, steel plants, aluminium smelter plants, roads, bridges and many others, speak volumes of the recklessness to which government has descended in obtaining and utilising these loans.
01/01/15 Daily Trust

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Recklessness in loan agreements: A case of the Aviation Sector

Many governments worldwide are now divesting from airports development and engaging private companies to develop and run them for better services and to reduce waste of government resources.
UK, Saudi Arabia, Brazil, India, Singapore, Argentina, Peru, Spain, Gabon and recently Zimbabwe are among the growing list of countries that have privatised their aviation sector.
Nigeria plans to privatise or concession her airports in 2015 after an expensive remodelling programme that gulped billions of naira, sparking criticisms from citizens.
Even more ridiculous, according to some critics, is that prior to the commencement of the privatisation in the sector, government has gone on a borrowing spree to develop terminals it will eventually manage through the Federal Airports Authority of Nigeria (FAAN).
The Nigerian government last year took a $500 million loan from the Export-Import Bank of China to fund new terminals in four cities including the capital, Abuja, the commercial hub of Lagos, the southern oil centre of Port Harcourt and the northern city of Kano. The contract was won by China Civil Engineering Construction Corporation.
The facility was obtained on a concessionary interest rate of 2.5 per cent, repayable in 20 years with a grace period of seven years.
The rationale behind obtaining some of these loans in the past has often been contentious given the fact that most times these borrowings which are done to improve structures, only end up having these structures completely derelict and mismanaged.
The level of decadence of national assets, such as stadia, refineries, steel plants, aluminium smelter plants, roads, bridges and many others, speak volumes of the recklessness to which government has descended in obtaining and utilising these loans.
01/01/15 Daily Trust

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