Showing posts with label Foreign Jul 2013. Show all posts
Showing posts with label Foreign Jul 2013. Show all posts

Wednesday, July 31, 2013

SpiceJet in ‘advanced’ talks with Emirates for stake sale

Mumbai/Delhi: Two days after the Jet-Etihad deal got FIPB approval, the buzz around SpiceJet looking for a partner has got louder.
The Kalanithi Maran-promoted low-cost carrier is reported to be in advanced stages of negotiations for a stake sale to a foreign airline. According to market sources, Dubai-based Emirates is the top suitor.
Burdened with a debt of Rs 1,429 crore, the SpiceJet management has apparently had talks with Gulf-based carriers Kuwait Airways and Qatar Airways.
However, industry sources indicate that the latest round of talks is with Emirates. “A deal with Emirates is a high possibility as the West Asian carrier is likely to lose out on market share in India after the Jet-Etihad deal. Emirates may be actively looking to partner with an Indian carrier,” said Sharan Lillaney, aviation analyst with Angel Broking.
In a recent interview to Business Line on the possibility of a deal with an Indian carrier, Emirates President Tim Clark had said, “I have never said no. Of course, we have looked at this.” ‘The Indian aviation market is a big cake and Etihad had got a piece, but at least three quarters of the cake is still there, uneaten,’ had he said.
31/07/13 Nivedita Ganguly/Ashwini Phadnis/Business Line

Jet-Etihad deal: FIPB clearing agreement not end of story

Even as the Foreign Investment Promotion Board (FIPB) has given its green signal to the $379-million deal that will see Abu Dhabi’s Etihad Airways buying a 24 per cent stake in Jet Airways, all is not over as the board has referred it back to the market regulator, while the final call has to be taken by the Union Cabinet. Besides, questions remain on the bilateral air services agreement (BASA) between India and the United Arab Emirates (UAE).
After giving an in-principle approval to the deal, economic affairs secretary Arvind Mayaram, who is heading the FIPB, said it had been passed with “some conditions”. The board had deferred the deal last month, saying it was not able to determine who would be the real owners of Jet once the deal went through. The government feared that the control of the company was going into “foreign hands”.
Even if Jet and Etihad did revise the original shareholders’ agreement to comply with the norms, in which they maintained that ownership would remain with Jet, “questions on effective control and ownership still remains, which is the main reason why the FIPB had to refer it back to Sebi (Securities and Exchange Board of India). Once the definition of ownership and control gets notified, Jet has to come back with changes”, a senior official present in the FIPB meeting on Monday told Business Standard.
31/07/13 Nayanima Basu/Business Standard

Experts say Etihad will exercise control over Jet Airways

Mumbai: Gulf-based Etihad Airways, which is in the process of acquiring a 24 per cent stake in Jet Airways (India) Ltd, will hold influence and control over the Indian carrier despite modifications to the  shareholder and commercial pacts signed between them, corporate governance and aviation experts say.
The government cleared the decks for the Rs 2,060-crore investment by Etihad and the Foreign Investment Promotion Board (FIPB) gave a conditional nod to the deal on Monday. This was done after the two airlines watered down contentious clauses regarding control and management. However, some experts feel not enough has been done.
J N Gupta, former executive director of the Securities and Exchange Board of India (Sebi) and founder of SES, a proxy advisory firm, said; “The deal may appear compliant in letter and on paper. However, it will only be known in future what kind of control Etihad continues to exercise over Jet.”
31/07/13 Business Standard

Modified Mahindra Aerospace GippsAero GA8 Airvan Astra from Summit Aviation at ALEA

The 43rd Annual ALEA Conference & Exposition held at Orlando from 17-20 July showcased the best of public safety aviation. Exhibitors showcased their products and services to aviation unit decision-makers and end users. Greenwich AeroGroup company, Summit Aviation announced their new Intelligence, Surveillance and Reconnaissance (ISR) platform for the aid of law enforcement officials.
Displayed for the first time at booth No 472, the aircraft is a cost effective modified Mahindra Aerospace GippsAero GA8 Airvan Astra. Summit has modified this system making it a full work station with moving maps and cross cueing sensors with a 3D mapping aerial camera and full motion video facilities. Summit Aviation is well versed with offering services to the Department of Defence.
They have utilized some of the most innovative techniques and facilities and modified them so as to ensure that they are more economical and efficient to meet the needs of law enforcement personnel.
GippsAERO, the Australian manufacturing arm of Mahindra Aerospace announced Summit Aviation as an authorized dealer for the GA8 Airvan in US with a particular focus on government and surveillance aircraft sales back in January 2013.
30/07/13 Nabanita Singha Roy/Rushlane

Shanmugam urges India to start work on aviation agreement with ASEAN

Singapore: Singapore has called on India to start negotiations on a full air transport agreement with ASEAN that includes passenger services.
Foreign Affairs and Law Minister K Shanmugam said such an agreement would expand tourism and business opportunities for India and Southeast Asia.
More passenger flights, he said, would also help to deepen ties between Singapore and India.
Mr Shanmugam said: "The relationship is a very strong one. It has many facets. We have a good relationship on the military side. We have a good and growing relationship on the economic side."
30/07/13 Channel News Asia

Tuesday, July 30, 2013

Jet-Etihad deal: Changes only for show?

The Foreign Investment Promotion Board has given the go-ahead to the much-discussed Rs 2,038 crore Jet-Etihad deal, a month after the initial share purchase agreement between the two airlines was sent back to them with the directive to modify it to fit the Indian regulatory parameters.
The revised share purchase agreement was approved on Monday (July 29).  Regulatory agencies such as FIPB can now argue that the Indian company (that is Jet Airways) will retain control, so that the existing policy on foreign direct investment in aviation is followed, or at least appears to have been followed. The deal with FIPB's recommendations (changes pertaining to legal and shareholding issues) is now sent back to Jet Airways and after they accept the changes and modify the agreement the deal will require an approval of the Cabinet Committee on Economic Affairs.
But the fact of the matter is that the deal would never have been called off. Three central ministries - Civil Aviation, Commerce and Home - were doing their best to facilitate the deal. There was a strong compulsion to see it through given existing market conditions, foreign institutional investors withdrawing in droves and the overall dismal economic performance of the government.
30/07/13 Business Today

Subramanian Swamy says first find out real owners of Jet Airways

Janata Party president Dr Subramanian Swamy has raised several questions on the ownership and effective control of Jet Airways post its deal with Abu Dhabi-based Etihad Airlines and on the security concerns related with the deal. In a letter sent to Prime Minister Manmohan Singh, the Janata Party president had requested to adequately scrutinize the proposal between Jet and Etihad before granting the approval.
He said, "All scrutiny and investigation in the past have for one vested reason or another, been suppressed and never acted upon putting Indian security gravely at risk. The allegations of serious underworld connections from the united Arab Emirates (UAE) continue to haunt Jet's ownership and need to be pre-examined by the Intelligence Bureau (IB), Department of Revenue Intelligence (DRI) and other Intelligence services."
"It is essential to examine the ownership of Tail Winds Ltd, registered in Isle of Man, a tax haven, as to who the true shareholders and beneficial owners are, prior to and as a consequence of the proposed transaction. This would be important to establish and ensure that it is a genuine and NRI owned company and has no other shareholders. In addition, it should also be proved that it has not been financed from inappropriate and unacceptable sources," Dr Swamy said.
30/07/13 moneylife.com

Concerns on Jet-Etihad deal were politically motivated: Ajit Singh

New Delhi: With FIPB granting conditional clearance to the Rs 2,058 crore Jet-Etihad deal, Civil Aviation Minister Ajit Singh today said the concerns raised by MPs and others over it were "politically motivated".
Observing that the decision would "bring back confidence of investors on India", he said, "All concerns of the MPs and others have been resolved. The issues they raised were politically motivated."
Replying to questions, he said it was clear that the Jet Airways "management has to work as per the Indian law. They would have headquarters in Mumbai. They would be governed by the Indian Aircraft Rules 1934".
He said if Jet or the Abu Dhabi-based Etihad Airways "at any time make changes in shareholding pattern, they have to get permission from the Indian government agencies... There was some problem with the language of the deal... so they were asked to change the language."
The minister said the FIPB clearance to the deal was an "important step for the civil aviation sector. We need money for infrastructure projects, which will come through FDI".
29/07/13 PTI/Economic Times

Finmeccanica trial: Antony will not depose in Italian court

Rome/New Delhi: Taken by surprise by the decision of an Italian judge to include defence minister A K Antony as a possible witness in a trial relating to corruption in the Rs 3,600 crore AgustaWestland chopper deal, India tonight ruled out his appearance in the court.
Reports from Italy said that a judge in the city Busto Arsizio had earlier today cleared the names of Antony, former British defence minister Geoff Hoon and Ratan Tata among 80 possible witnesses in the trial of former CEO of Italy's Finmeccannica, which had secured a deal with the Indian government for the supply of 12 helicopters to ferry VVIPs.
Three of the helicopters had been delivered before corruption was reported in the deal.
Former IAF chief Air Chief Marshal S P Tyagi and his three cousins have been questioned by the CBI in connection with allegations of kickbacks to the tune of Rs 362 crore in the deal. Tyagi has denied any wrongdoing.
29/07/13 PTI/Times of India

Disgruntled Airline Speaks Up About Boeing 787 Payout

While the 787 Dreamliner’s flying woes may dominate headlines, the payments Boeing (BA) makes to soothe disgruntled buyers of the new plane are typically handled in much quieter fashion. But the first European customer for the 787, LOT Polish Airlines, is taking its demand for compensation public.
The issue surfaced after an earnings conference call last week in which Boeing Chief Executive Officer W. James McNerney declared settled all the customer-payment requests from the 787's three-month grounding. “There were some instances where we had obligations to customers, and those have all been satisfied,” McNerney told investors and reporters during the July 24 call. “And you can see by our quarterly results that there was no significant impact to our operations as we work with our customers to remedy the situation. He added: “We think they are all behind us now.”
The Polish airline begs to differ. “Maybe this did not have any impact on the profit side of Boeing, but in fact we were not satisfied at all financially,” LOT spokesman Robert Moren says in a telephone interview conducted on Monday. “Those [costs] are not probably gigantic money for Boeing, but for us—while we are in the process of restructuring—it’s quite substantial.”
Payments by airplane manufacturers for such new-plane issues always come with a certain amount of legalistic haggling, veering into the public domain only when it potentially serves the interest of a financially squeezed airline. In March 2012, for example, Boeing reacted swiftly to deny a statement from the Indian government that the company had agreed to pay $500 million over 787 delivery delays to Air India.
30/07/13 Justin Bachman/Business Week

Foreign comapanies may come to rescue of desi airlines

New Delhi: The fund-starved Indian airline industry - which recently witnessed the grounding of Kingfisher apart from the closure of Paramount and MDLR - could now get life-saving money and management of foreign airlines. The Jet-Etihad deal was being seen as a test case by foreign airlines which are eying stake purchase in SpiceJet and GoAir (IndiGo has so far not shown any interest) and they may now quickly announce their deals in coming days.
Aviation ministry sources say the Foreign Investment Promotion Board's nod for the Jet-Etihad deal may push the home ministry to expedite the security clearance for the proposed airline from the AirAsia-Tata joint venture.
For flyers, this would mean well-funded airlines competing among themselves to woo them. This, in turn, will mean lower fares and more choices.
"Getting clearances in India is a nightmare. The government held up for months the $900-million Jet-Etihad deal, which is the biggest FDI in the aviation sector here. Other potential foreign airline investors coming with much smaller sums of money were sitting on the sidelines and will now start coming in. Expect announcements from SpiceJet and GoAir very soon," said a Delhi-based senior official of a foreign airline.
30/07/13 Times of India

British Airways to fly daily from Hyderabad to London

Hyderabad: British Airways (BA) expects a significant growth in business and leisure outbound travel from Hyderabad to the UK. As part of its expansion here, it plans to meet the growing demand by pitching in daily service from Hyderabad to London from October 27. Currently, it operates six flights a week from here.
'Hyderabad has emerged as one of the strongest growing markets in India in the last two years with a range of business activities and tourist inflows making it a really fantastic place to fly,' said Christopher Fordyce, regional commercial manager for South Asia, British Airways.  
India is the second largest market for it after the US. 'The outbound travel from India is expected to grow to 50 million by 2020 from the existing 15 million, second to China. Our plans in India would mostly be driven by the supply and demand,' said Fordyce.He said the airline was confident of maintaining student travellers seeking admissions to UK universities and other European countries.
30/07/13 Business Standard

Tony Fernandes hits turbulence with AirAsia deal in India

Kuala Lumpur: Budget carrier AirAsia Bhd's bid to launch an airline in India in October has hit some turbulence, with a petition filed by the Indian Janata Party leader Subramanian Swamy seeking to withdraw clearance given by the Indian Foreign Investment Promotion Board (FIPB) for the venture.
Indian national business portal livemint reported late last Friday that Subramanian had on Thursday filed a petition in the Supreme Court to the effect.
The news comes more than a month after AirAsia Bhd announced it was pulling out of a venture with Japan's All Nippon Airways due to irreconcilable differences.
Subramanian, in his 60-page public interest litigation (PIL), termed the clearance as illegal and said several issues related to foreign control and policy were overlooked when clearance was granted.
AirAsia Bhd owns a 49% stake in AirAsia India Pvt Ltd, while India's Tata Sons Ltd holds 30% and Arun Bhatia's Telestra Tradeplace Pvt Ltd the rest.
30/07/13 Malaysia Chronicle

Foreign companies may come to rescue of desi airlines

New Delhi: The fund-starved Indian airline industry — which recently witnessed the grounding of Kingfisher apart from the closure of Paramount and MDLR — could now get life-saving money and management of foreign airlines. The Jet-Etihad deal was being seen as a test case by foreign airlines which are eying stake purchase in SpiceJet and GoAir (IndiGo has so far not shown any interest) and they may now quickly announce their deals in coming days.
Aviation ministry sources say the Foreign Investment Promotion Board's nod for the Jet-Etihad deal may push the home ministry to expedite the security clearance for the proposed airline from the AirAsia-Tata joint venture.
For flyers, this would mean well-funded airlines competing among themselves to woo them. This, in turn, will mean lower fares and more choices.
30/07/13 Times of India

Jet plans more flights to and beyond Abu Dhabi

New Delhi: With the FIPB nod, Jet Airways has moved a step closer to implementing its plans of not only launching daily services from eight Indian cities to Abu Dhabi, but also to start a daily service linking Bangalore to Chicago through Abu Dhabi.
The airline will still have to wait for formal clearance from the Competition Commission of India, the Cabinet Committee on Economic Affairs and the Ministry of Civil Aviation before it can launch these new flights. The Commercial Cooperation Agreement that Jet Airways and Etihad signed in April, which was amended in May, states that Jet Airways will start daily services from Bangalore, Chennai, Kochi, Hyderabad, Thiruvanthapuram, Mumbai, Delhi and Ahmedabad no later than winter of 2013.
29/07/13 Business Line

SpiceJet to launch thrice a week flight Ahmedabad-Muscat flght

New Delhi: Expanding its international network, no-frills carrier SpiceJet will launch its thrice a week flight between Ahmedabad and Muscat from next month.
The commercial flights between Muscat and Ahmedabad would commence from August 29, and the thrice a week service will be operated on a 189-seater Boeing 737-800 New Generation aircraft.
The Kalanithi Maran-owned airline had expanded its global footprint in the recent past by adding several cities in the Middle Eastern and Asian regions to its network. Muscat will be the ninth international destination of the airline.
30/07/13 PTI/Economic Times

Bid to smuggle drugs foiled, one held

Mumbai: An Indian passenger has been arrested from Mumbai international airport for allegedly trying to smuggle out 1.74 kgs of Ketamine drug valued at Rs 17.45 lakh to Malaysia, customs officials said today.
The accused Senthilkumar Duraiswamy, who was scheduled to depart on a Malaysian Airlines flight to Johor Bahru via Kuala Lumpur yesterday, was intercepted at the Chhatrapati Shivaji international airport, the officials said.
30/07/13 PTI/Business Standard

Monday, July 29, 2013

FIPB clears Jet-Etihad deals with some riders

New Delhi: Following concerns raised by Securities Exchange Board of India (SEBI), the government on Monday gave a conditional go ahead to Jet Airways to sell 24 per cent stake to Abu Dhabi based Etihad Airways for Rs. 2,058 after Etihad submitted an amended Holders Agreement (SHA) and Commercial Cooperation Agreement (CCA).
"We have approved the Jet-Etihad deal with some conditions," Economic Affairs Secretary Arvind Mayaram told reporters after a meeting of the Foreign Investment Promotion Board (FIPB) here. As part of the conditional clearance, Jet Airways has been asked to seek prior approval of government for any changes to be made in the SHA with Etihad as also for any change in shareholding pattern of the company.
The FIPB clearance also came with a rider that all shareholder disputes and disputes under SHA would have to be adjudicated under Indian law as opposed to English law as proposed in the revised SHA submitted just before the FIPB meeting. Any other arbitration can happen under English law. In addition to this, Jet-Etihad will have to submit new Articles of Association before the deal is put before Finance Minister P. Chidambaram for approval and then brought before the Cabinet Committee on Economic Affairs (CCEA).
29/07/13 Sujay Mehdudia/The Hindu

Jet Wins India Panel’s Approval to Sell Stake to Etihad

Jet Airways (India) Ltd. (JETIN) won approval from India’s investment panel to sell a stake to Etihad Airways PJSC, the first share sale by a local carrier to a foreign airline after the nation eased ownership rules.
Jet’s plan to sell a 24 percent stake to Etihad was approved by the Foreign Investment Promotion Board, Economic Affairs Secretary Arvind Mayaram told reporters in New Delhi today. The deal will need approvals from India’s finance minister and Cabinet Committee on Economic Affairs, a government official said, asking not to be named pending a formal announcement.
The agreement with Abu Dhabi-based Etihad will help Jet raise 20.6 billion rupees ($347 million) of funds for fleet expansion and paring debt after six years of losses caused by a price war and high fuel costs. Etihad will gain access to a market where air travel is forecast by CAPA Centre for Aviation and SITA to triple to 452 million by 2020.
29/07/13  Tushar Dhara & Karthikeyan Sundaram/Bloomberg

FIPB defers nod on Jet-Etihad deal

The Indian government's investment promotion board's conditional nod to the proposed 24 percent stake-sale in Jet Airways to Abu Dhabi-based Etihad Airways is a positive step for the aviation industry, experts watching the sector opined Monday. "Good to see FIPB (Foreign Investment Promotion Board) clearing the Jet-Etihad deal, albeit with riders. The deal is important to Jet, which is facing significant financial challenges. The deal will also help the Indian civil aviation industry by enhancing capacity, increasing competition and bringing down airfares," said Amber Dubey, partner and head aerospace and defence at global consultancy firm KPMG.
The deal was cleared by the FIPB Monday. Now the deal will go to the Cabinet Committee on Economic Affairs (CCEA) for final approval.
"The step will instill confidence in the airlines industry in India. It particularly benefits both the partners and in general improves the prevailing investment climate in the country," said Rajiv Chib, associate director, PricewaterhouseCoopers.
Civil Aviation Minister Ajit Singh said: "The deal is good for passengers and the civil aviation sector. We require a lot of foreign investment in our infrastructure side. The deal will also reaffirm investor confidence in the India (growth) story."
29/07/13 IANS/Daily News & Analysis

Etihad makes major concessions in favour of Naresh Goyal to speed up Jet deal

New Delhi/Mumbai: Abu Dhabi's Etihad has made significant concessions in favour of its Indian partner, NareshGoyal, in an effort to persuade the Indian authorities to clear its $600-million investment in Jet AirwaysBSE 4.22 %.
Etihad has agreed to vest Goyal, the founder chairman of Jet, with the right to deliver a "casting vote on any matter", in addition to reducing its representation from three to two on the 12-member board of India's largest private airline by revenues.
ET reviewed the latest set of amendments to a slew of agreements between the two airlines that was sent to the Department of Industrial Policy and Promotion on July 25, ahead of a crucial meeting of the Foreign Investment Promotion Board (FIPB) on Monday.
29/07/13 Anandita Singh Mankotia & Satish John/Economic Times

SpiceJet in talks for stake sale to foreign airline

New Delhi: Kalanithi Maran-promoted, low-cost carrier SpiceJet is reported to be in advanced negotiations for a stake sale to a foreign airline. If the deal comes through, it would be the third in line after the Jet Airways-Etihad tie-up and AirAsia joint venture with the Tata Group.
Industry sources confirmed that SpiceJet is in discussions with a foreign carrier and efforts are on to conclude the negotia-tions expeditiously. However, the sources refused to divulge any further details saying share-holders would get to know about it very soon.
A top industry official confirmed that competing Gulf carriers are pushing for an entry into the Indian aviation sector after Abu Dhabi-based Etihad struck the deal with Jet. "It is actually a fight between Gulf carriers for getting more share in India's aviation market. Gulf carriers have an advantage that they are exactly in the middle of the globe and want to encash on that," said the official.
29/07/13 Business Today

Boeing requests worldwide inspection of plane part

Washington: US aircraft manufacturer Boeing has asked airlines to inspect an emergency transmitter used on a range of its planes.
It made the request after British investigators recommended inspections of the same part in Boeing 787 aircraft, following a fire on a 787 Dreamliner jet parked at Heathrow airport.
Runways at the airport in London were shut for about an hour-and-a-half earlier this month after the fire on an Ethiopian Airlines plane.
Boeing had already sent out instructions on inspecting the part on its 787 aircraft, and said it was now asking for inspections on the 717, Next Generation 737, 747-400, 767 and 777 models as well.
The part called an Emergency Locator Transmitter, made by Honeywell International, is used to locate a plane after a crash.
29/07/13 DPA/Business Line

New circular delaying repatriation of dead bodies to India

A new circular from the New Delhi-based Airport Health Organisation (AHO), responsible for clearing dead bodies, human remains and ashes of Indians living abroad, has asked airlines carrying dead bodies or human remains to intimate the AHO 48 hours in advance and carry death certificates in English specifying the reason for death to ensure speedy clearance.
The circular says two days’ advance notification is needed for officials to examine the documents.
“As per the provisions of the Aircraft (Public Health Rules), 1954 Part IV Rule No 13 to 47 regarding carriage of dead bodies and cremated remains by international airlines, the consignees as well as the air transport service shall give the health officer at the airport of arrival, advance inform at least 48 hours of the importation of the dead body or human remains or ashes. This is important for speedy clearance of the dead body or human remains,” said the circular sent out by the Airport Health Organisation in the Indira Gandhi International Airport, New Delhi. A copy of the circular is available with Emirates 24|7.
This rule has been in existence, but airlines have now been instructed to follow it strictly, following recent cases of MERS virus related deaths in Saudi Arabia. Four dead bodies have been stranded at Muscat Airport after the rule began to be applied strictly, according to social workers in Oman.
29/07/13 V M Sathish/Emirates 24|7

SpiceJet to launch flights to Macau

Macau: The Indian budget carrier, SpiceJet, is planning to add three new destinations to its international flight network, including Macau and Bangkok. According to Indian media, adding new destinations is part of the airline’s overseas expansion plans.
The budget carrier company, based in Chennai, is due to launch flights to Macau, Bangkok and Muscat, the capital of Oman, the news agency Press Trust of India (PTI) reported yesterday. An airline source stated, “We are all set to expand our overseas operations; as part of this, we plan to launch flight services to Bangkok, Muscat and Macau.”
Furthermore, the three suggested flights are due to be launched within the summer schedule, which in India can start in late March and last until October. “We are quite steady on our international operations expansion,” an airline source told the news agency.
29/07/13 MacauDailyTimes

Sunday, July 28, 2013

Qatar grounds another Dreamliner

Qatar Airways said yesterday it had taken one of its Boeing 787 Dreamliners out of service following what it described as a “minor” technical issue, as pressure mounted on the plane maker over possible new electrical problems with the advanced jet.
Two people familiar with the matter, asking not to be identified, said smoke had been reported near an electrical compartment while the jet was on the ground in Doha. A failure in a similar bay caused a fire during a test flight in 2010, and three of the jets, including one owned by Qatar Airways, had electrical problems last December.
The 787 has suffered a spate of mishaps in recent weeks, including a spontaneous fire on an Ethiopian Airlines-owned 787 that broke out while the plane was parked at a remote stand at London’s Heathrow airport for eight hours on July 12.
India’s aviation regulator said earlier it had started an investigation after an oven in a 787 operated by Air India overheated during a domestic flight, causing smoke. There was no interruption to services.
Japan’s ANA Holdings Inc, which operates the world’s biggest fleet of Dreamliners, also said yesterday it had found damage to the battery wiring on two 787 locator beacons, made by Honeywell International Inc.
The US Federal Aviation Administration and Boeing instructed airlines to inspect or remove the beacons, after UK investigators found two wires pinched together in the beacon inside the Ethiopian Airlines Dreamliner at Heathrow. The resulting fire caused extensive damage to the plane.
27/07/13 Reuters/Times of Malta

Saturday, July 27, 2013

72 hours before fire, Boeing oven severely scalded air hostess

A day after an oven aboard one of Air India's muchtouted Dreamliner aircraft "caught fire" in midair, just two months after the national carrier resumed flights on the glitch-hit Boeing 787s, it has been found that it was not the first but the second such incident on that very aircraft within a span of 72 hours.
The same aircraft was flying from New Delhi to New York on June 22 when the oven overheated and a crew member of the flight (AI 115) sustained burns and had to be rushed to a hospital by paramedics at Heathrow airport. An Air India official told Mirror, "The crew member has toasting bread for a passenger. But when he opened the over, hot water gushed out instead."
Captain Nivedita Bhasin, who was commanding the fligh contacted the Heathrow Airport where paramedics were on standby. Upon landing, the crew member was rushed to a hospital.
27/07/13 Aditya Anand/Mumbai Mirror

Dreamliner nightmare: Same oven had got overheated at least twice earlier too

New Delhi:  The American Federal Aviation Administration (FAA) is looking at the latest incident of an electric snag causing overheating in Air India's Dreamliner. Airline sources say the oven which got overheated on the Delhi-Kolkata flight operated on Boeing 787 on Wednesday had experienced the same problem twice earlier.
"Our Dreamliners have 13 ovens in all. This particular oven of this aircraft (VT-ANL) had overheating on at least three occasions. We had earlier contacted the oven manufacturer. Now this oven has been removed and the aircraft is in use," said an official.
AI has now contacted Boeing and the official said FAA is looking at this malfunction. "We feel this may not be a generic problem and just an isolated one for this aircraft alone. But we will be able to conclude only after getting a report from Boeing and/or FAA. None of the Dreamliner used for longhaul flights to places like London have had this kind of trouble," said the official.
27/07/13 Saurabh Sinha/Times of India

United Airlines, ANA find wire problems on 787's transmitters

Washington: Two airlines disclosed issues with the wiring on their Boeing 787’s emergency transmitters the same part of the plane that is getting scrutiny after a parked jet burned earlier this month.
United Airlines said yesterday that it found a pinched wire during an inspection of one of its six 787s. Earlier, Japan’s All Nippon Airways found damage to wiring on two Boeing 787 locater beacons. It flies 20 of the jets.
The inspections were mandated by the Federal Aviation Administration for US airlines after the tail of an Ethiopian Airlines 787 caught fire while parked at London’s Heathrow airport earlier this month. UK investigators said the only thing in the tail section with enough power to fuel a fire like that was the emergency transmitter. That’s a metal-cased, battery-operated radio the size of a loaf of bread that activates in a crash to help rescuers find a plane.
27/07/13 PTI/Business Line

Etihad to have fewer directors on Jet Airways board

New Delhi: Abu Dhabi-based Etihad Airways has agreed to reduce the number of directors on the board of Jet Airways. The move is primarily aimed at addressing concerns of the government over the effective control of Jet Airways after the Jet-Etihad deal.
The issue has been holding up the Rs 2,058 crore deal, which had come up before the Foreign Investment Promotion Board (FIPB) on June 14, but was deferred.
Sources with knowledge of the details told The Indian Express that the amended shareholders agreement submitted by the two airlines to the finance ministry says that Etihad would now have only two directors on the 14-member board of Jet Airways, leaving effective control with the Indian promoters.
In addition, the board will comprise seven independent directors. As per the original agreement, Etihad was to nominate three directors and Jet four directors to the board.
27/07/13 Indian Express

Competition Commission of India seeks market share details of Jet-Etihad

New Delhi: Jet Airway's ambitious plan to fly from 23 Indian cities to Abu Dhabi after the deal with Etihad clears Foreign Investment Promotion Board (FIPB) hurdle may prove to be the next stumbling block after the "effective control" issue.
The Competition Commission of India has sought detailed response from Jet and Etihad on the combined market share the two airlines expect to have on the India-Abu Dhabi and beyond routes to places like North America and Europe where other Indian carriers also fly.
Jet has sought time till August 5 to reply to CCI queries. It wants to get FIPB nod when the board meets on Monday. Since FIPB and market regulator SEBI had raised concerns about "effective control and ownership", some changes are learnt to have been made in the structure of the deal. "Etihad will now have two directors on the 10-member board, instead of four proposed earlier. This will limit their say in the airline post deal. Big ticket appointments will be made by majority of votes and that should give Etihad say in the airline commensurate to its 24% stake in Jet," said sources.
27/07/13 Saurabh Sinha/Times of India

Rummaging through the bags of a pardes-bound student

It's that time of the year again when students start college, and while some undergo a change of city, others head to a different country or even continent. Now, given how much we love our desi, masaledaar khaana, that's the one thing we can't do without, no matter where we live. So, doting mommies whose kids are heading abroad are leaving no stone unturned to ensure their laadla betas and betis don't miss Indian food. However, their kids are left attempting to stuff 'inappropriate' numbers of achaar bottles and matthi that mommy got them, into their bags.
Maggie, achaar and masaledaar eatables are now some of the most common things that one can expect to find in the suitcase of an Indian student taking an international flight. But this year, mothers are going the extra mile (or rather kilogram) to make sure the kids don't get too homesick.
Airlines have also made sure that the students don't forget to take their favourite things when they leave home. Now, a number of airlines allow students to carry bags that weigh between 40 and 50 kg which is a quite a jump from the mere 23 kg that travellers are usually allowed. But forget students, it's their mothers who are making the most of this increase in baggage allowance by packing things that wouldn't be difficult to find in the country their child is going to.
27/07/13 Archita Bisht/Times of India

Friday, July 26, 2013

Jet-Etihad deal closer to getting approval, amends shareholding agreement

New Delhi: Abu Dhabi-based Etihad Airways has agreed to halve the number of directors on Jet Airways' board as part of its Rs 2,058 crore deal, giving the Indian promoters 'effective control' of the carrier.
According to the revised agreement, Etihad would have two directors on the board after the deal, as against the earlier proposal of four in the 10-member board.
The revised structure seeks to address the concerns of the Foreign Investment Promotion Board (FIPB) and the Securities and Exchange Board of India (Sebi) with regard to effective control after the foreign direct investment (FDI) - the largest in the aviation space so far.
Besides, the Revenue Department was also looking deeper into the proposed deal to identify the beneficial owners and check whether it is structured in a way to evade taxes.
FIPB had in June deferred a decision on Jet's proposal to sell a 24 per cent stake to Gulf-based airline. The Board is set to meet again on the proposal on July 29.
26/07/13 Business Today
Mumbai: The Securities and Exchange Board of India (Sebi), which is looking closely at the deal between Jet Airways and Etihad Airways, is expected to give its go-ahead only after the clauses giving veto powers to the foreign partner are diluted.
According to sources, the capital market regulator is not comfortable with the clause that requires promoters to get a written consent from Etihad before selling or transferring their shares. Further, the fact that Etihad’s representative will be getting preferential treatment over other board members while constituting the quorum has also not gone down well with Sebi as it violates the Companies Act.
Sources further add that Sebi has already indicated its stance to other government agencies, including the aviation ministry, and representatives of the two airline entities.
26/07/13 Ashish Rukhaiyar/Financial Express

Take 'well-informed' decision on Jet-Etihad deal: BJP MP to PM

New Delhi: Posing yet another challenge to the Jet-Etihad deal, BJP MP Nishikant Dubey has shot off a letter to the Prime Minister urging him to take a "well- informed" decision in the matter, saying the entire government was being dragged into a controversy.
"While it was one minister who has been blamed for the 2G mess, the present case (Jet-Etihad deal) will see your entire government being dragged through the mud.
"Once again, our relations with a foreign nation will be made to suffer - for the personal, vested interests of a few unscrupulous people," he said in the letter written on Tuesday.
In the three-page letter, Dubey referred to the questions raised by SEBI regarding the Rs 2,058 crore deal regarding "effective control" of the airline.
26/07/13 PTI/Economic Times

India fighter jet deal negotiations going well, France says

New Delhi: France's defence minister said on Friday negotiations with India to sell 126 Rafale fighter jets from Dassault Aviation were proceeding well, but did not say when the deal would be finalized.
India picked the Rafale for exclusive negotiations in January 2012 after a hotly contested bidding war. But differences over the industrial role of India's state-run Hindustan Aeronautics Ltd have delayed the deal.
French defence minister Jean-Yves Le Drian, who is on a three-day visit to India, told reporters he was not concerned about the delay to finalize the $15 billion contract, one of the world's largest defence import orders.
"Of course, the project is the priority. At the risk of disappointing you, I will not be announcing the date of signing the contract. I would like you to know that the negotiations are going on well and I have full confidence," Le Drian said.
Under the deal, Dassault is expected to send 18 ready-made jets, then manufacture the rest in India. Hindustan Aeronautics Ltd (HAL) will be the company's lead partner in the process.
26/07/13 Reuters/Times of India

Now, fly Pune to Sydney, Melbourne via Delhi

Pune: National carrier Air India (AI) has announced new flight services to Birmingham in the UK and Sydney and Melbourne in Australia from Delhi, starting from August 1 and 29, respectively. The new services will provide apt connectivity to citizens for Pune, who plan to travel to these international destinations, via Delhi.
The AI has provided the facility of through tagging of check-in baggage at Pune for passengers travelling on AI 852 and connecting onwards to these international destinations. "Custom and Immigration will be done in transit at Delhi," AI Pune station manager Dhairyasheel Vandekar told TOI on Thursday.
"These flights will be operated with our latest Dream-liner aircraft having a seating capacity of 18 business class and 238 economy class seats," he said. "The AI is resuming flights to Australia after a gap of 16 years," he said.
26/07/13 Vishwas Kothari/Times of India

Dassault CEO talks of ‘hope and uncertainty’

Paris: Eric Trappier, the CEO of Dassault Aviation (DA), the manufacturers of the Rafale Multi Role Combat Aircraft of which India is planning to purchase 126, said in Paris on Thursday that the company was living through times of “hope and uncertainty” and that it was “important to sign the Rafale contract with India.”
Referring specifically to the Rafale programme, Mr. Trappier said the aircraft carried “our hopes with exports and its operational success in Mali. However, questions weigh on budgetary policies concerning French programmes.” It was therefore key to the company’s future that the contract with India be signed. “We know that there is an election in India next year. It could even take place earlier. If we do not sign by the end of the year, it could be done after the elections,” a confident Mr. Trappier told The Hindu.
Mr. Trappier, Dassault Aviation’s 53-year-old CEO who took over last year, was speaking at a press conference announcing the company results for the first six months of this year. The company, which also manufacturers the famous Falcon executive jet, said it has taken 27 new orders for the Falcon, compared to 25 in the first half of 2012. The company has delivered 29 Falcons and 5 Rafale jets, compared to 34 Falcons and 4 Rafales including the same period last year.
26/07/13 Vaiju Naravane/The Hindu

Air Arabia, Cambata Aviation officials busted for gold smuggling

Ahmedabad: A team of the Directorate of Revenue Intelligence (DRI) busted a gold smuggling racket on Wednesday when it arrested seven men, six of whom are aviation staff, carrying three kilograms of gold at Sardar Vallabhbhai Patel International airport. They were produced before the metropolitan magistrate's court later in the evening.
On the basis of intelligence inputs, the DRI had been keeping a watch on the airport for the past one month. In the intervening night of July 23 and 24, a DRI team arrested one Mayur Puchariya, who had come from Sharjah by an Air Arabia flight, along with Manvendra Singh and Jay Vaidya (both officials of Air Arabia) and Feroz Sheikh, Arpit Rawal, Dhawal Joshi and Sameer Mansuri (all Cambata Aviation officials). A total of three kg of gold jewelry and $10,000 were recovered from the accused.
This is the first case of gold smuggling at the city airport in which airline officials were also involved. Cambata Aviation manages the ground-handling work for Air Arabia at Ahmedabad airport. Airline officials aren't checked by customs while leaving or entering the airport. This security loophole was used by the accused to smuggle gold. The accused airline officials would ask the passenger carrying gold to stay back in the plane when others left.
25/07/13 eTurboNews

Indian pair arrested in Thailand for smuggling

Bangkok: Two Indian men were arrested in Thailand today for allegedly carrying 12 kilos of drugs worth crores of rupees.
Thai Customs officers arrested the two at Samui international airport after they arrived here from Chennai via Singapore.
The two men, identified as Virdi Hardev Singh, 51, and Puran Singh, 41, had flown in on a Singapore International Airlines flight.
Customs officials became suspicious during the luggage X-ray. A search found a total of 12 kilos of crystal methamphetamine, known as ice, in hidden compartments of their bags.
26/07/13 PTI/Business Standard

Thursday, July 25, 2013

Air India secures $500 mn from Deutsche, Investec Bank for 5 Dreamliners

Mumbai:  India's national carrier Air India, has secured a $450-500-million bridge loan from Deutsche Bank and Investec Bank for five of its Boeing Dreamliners.
Air India has seven Dreamliners in its fleet, out of 27 it has ordered, which it hopes will help the airline to turnaround financially. It has received $90-m loan against each Dreamliner, a source said. The airline opted for a one-year short-term loan till it secured long-term financing from lenders. The delivery of these five aircraft will be taken between July and October, the official added.
Sources said three of the Dreamliners were funded by British bank Investec and two by Deutsche Bank. "We have got financing for all the five Dreamliners and have mandated Deutsche Bank and Investec Bank for arranging the bridge loan for this," a senior Air India official told a news agency here on Thursday.
25/07/13 Economic Times

Jet-Etihad deal; why Naresh Goyal and Rahul Bhatia must work together

Indian aviation's biggest rivalry, in many ways, is between Jet Airways' Naresh Goyal and IndiGo's Rahul Bhatia. But they shouldn't just compete. They should cooperate — when they talk to the government.
Goyal, effusive and earthy, and Bhatia, reticent but suave and articulate, are different kind of men who had similar beginnings. Goyal began his career in aviation as a humble cashier in his maternal uncle Seth Charan Das Ram Lal's travel agency, East West Agencies, in 1967. Bhatia started in 1989 by joining his father Kapil Bhatia to manage his travel services firm, InterGlobe and Swan Travels.
Both started making it big in aviation by servicing the sales needs of foreign airlines. So, Goyal and Bhatia started their airlines with a crucial advantage others lacked: a well-knit distribution network. They have an understanding of this business and how it operates in India that's deeper than most other players'. Now, the two men between them serve more than half the domestic aviation market. Naturally, they also enjoy immense clout in the corridors of power. Which is why if Goyal and Bhatia play it right and smart, they can save Indian aviation.
25/07/13 Satish John/Economic Times

Gulf Air appoints Hussain Abdul Rahman as Country Manager for India

Mumbai: Gulf Air, the national carrier of the Kingdom of Bahrain, has appointed Hussain Abdul Rahman as Country Manager for India, stated a release. Rahman replaces Mario Xavier Selvadurai who retired after working with the airline for nine years. Rahman will be based in Mumbai. In his new role, he will be responsible for driving the commercial performance of Gulf Air in India, and building on existing strong relationships with the airline’s key travel agents and corporate entities.
25/07/13 TravelBizMonitor

Wednesday, July 24, 2013

Air tickets going at ‘super premium’ prices

Muscat: Like every year, this year too, there is a huge demand for air tickets during the Eid holidays when most expatriates want to be in their home country with their family members.
"Most of the to-and-fro flights from Muscat to India have been booked or will be booked by the end of Ramadan. And the few vacant seats will be available at a super premium," said Shabbir Khan, a travel agent who has offices in Ruwi and Ghubrah.
Travel agents claimed the price of air tickets to most of destinations in Asia has doubled while in some sectors, for travellers who wish to leave Oman on the night of August 8, fares have gone up by almost 300-to-500 per cent.
Airfare on the Muscat-Delhi route is up at least 100 per cent while the fare for Muscat-Kochi sector has risen by 300 per cent. Similarly, Muscat-Mumbai fares have shot up by 500 per cent from the lowest fares on the same sector. The return fare for Muscat-Mumbai is close to OMR300, up from OMR65 (which the Indigo airline offered) while Muscat-Kochi fare is as high as OMR320 if you want to travel on August 8 and return on August 17.
24/07/13 Times of Oman

Two African women held with drugs at Indira Gandhi International Airport in Delhi

New Delhi: Two South African women have been arrested by anti-narcotics sleuths for allegedly smuggling 78 kgs of popular party drugs from the Indira Gandhi International Airport (IGIA) in Delhi.
The duo were intercepted by CISF personnel late Saturday night when the women, identified as Bulayi Nthabiseng Josephin (42) and Mkhaliphe Grace Bongiw (41), came to the airport and were scheduled to travel to Nairobi.
Josephin, according to security officials, was intercepted after her activities were found suspicious and when her bag was searched 41kgs of popular party drug Pseudoephiderine was recovered.
21/07/13 PTI/NDTV.com

Man held at RGIA with gold worth 25L

Hyderabad: Customs sleuths arrested a passenger arriving from Bangkok while he was trying to smuggle in 1 kg gold biscuit worth Rs 25 lakh at the RGI Airport, Shamshabad, on Tuesday.
Acting on passenger profiling intelligence data, the sleuths of Air Intelligence Unit, RGIA Customs, intercepted a passenger, Syed Daulath Hussain, at the exit gate of the customs check area.
Hussain, a native of Alipur in Karnataka, arrived here from Bangkok by Thai Airways Flight TG-329 in the wee hours of Tuesday.
Hussain opted for the 'Green Channel', which is meant for passengers not in possession of any dutiable goods.
24/07/13 Times of India

Monday, July 22, 2013

Jet-Etihad deal: Govt says it has nothing to do with sale of Jet's slots

Under criticism from several MPs over the Jet-Etihad deal, government on Monday said it had "no role to play" in the sale of Jet's slots at London Heathrow airport to the Abu Dhabi-based airline.
The Civil Aviation Ministry came out with a detailed note on the matter, saying "Government or any other Civil Aviation Institution in India has no role to play". It further termed the charges of irregularities in sale of three slots by Jet to Etihad as "absolutely baseless and false".
"This is purely a function of Airport Coordination Limited of Heathrow Airport and the concerned airlines," it said.
It also maintained that Air India, which had four slots at Heathrow, was currently using only three and the remaining one was leased to Delta Airlines of the US.
A slot, or landing and departure time, are permissions to use a runway or airport infrastructure which is given by the airport to the airlines as per procedure.
23/07/13 PTI/Business Today

Govt takes back seat on Jet move

New Delhi: The government today said it could not have intervened in the sale of landing slots by Jet Airways in London’s Heathrow airport to Etihad Airways or reallocated the same to state-run Air India.
“There is a confusion that trading of slots at Heathrow and allotment of international traffic rights to Indian carriers by the civil aviation ministry are the same thing,” the civil aviation ministry said in a statement, adding the “government or any other civil aviation institution in India has no role to play” in the trading of slots.
Jet Airways has transferred three Heathrow slots to Etihad Airways for £42.6 million or Rs 423 crore.
According to the government, slot trading is an issue between the Airport Coordination Ltd, Heathrow (which allots the slots) and the concerned airlines.
23/07/13 Telegraph

Boeing delivers second C-17 cargo plane to India

Boeing delivered its second C-17 Globemaster III airlifter to India Monday in a ceremony that included a visit from Indian Air Force Chief Marshal Browne -- his first visit to the U.S. in 26 years.
Officials from Boeing's Long Beach assembly facility, including Nan Bouchard, vice president and C-17 program manager, touted the deal with India, which includes a total of five C-17s this year and five next year.
The country became Boeing's largest foreign customer when it endorsed a $4.1 billion deal to purchase the C-17s to help modernize and replace India's aging fleet of Russian-built cargo planes.
22/07/13 Press Telegram

Chiranjeevi to visit Australia to promote Dreamliner service

New Delhi: The Tourism and Civil Aviation ministries today discussed strategies for the maiden launch of Air India's Dreamliner flight from Delhi to Sydney and Melbourne next month.
Tourism Minister K Chiranjeevi today called on Civil Aviation Minister Ajit Singh here in this regard.
The launch of the Dreamliner service between India and Australia on August 29 could further increase the tourist traffic between the two countries. Australia already ranks among the top ten source destinations for in-bound tourists to India.
"In order to effectively leverage the launch of the Dreamliner, Tourism Ministry will be organising road shows in Australia, with the participation of Air India and the travel and tourism industry to build on the better connectivity between two countries," said a senior Tourism Ministry official.
The number of Australians visiting India has significantly risen in the last five years, from 1,35,925 in 2007 to 1,86,002 in 2011.
23/07/13 Business Standard

Gold bars worth Rs 1.12 cr seized from couple at Kochi airport

Kochi: About 4 kg of gold bars valued at Rs 1.12 crore was seized and a couple detained at the airport here for allegedly attempting to smuggle it from Dubai. The seizure was made by officials of customs preventive commissionerate when they, acting on a tip-off, intercepted the couple hailing from Kannur on their arrival from Dubai at the international airport here.
22/07/13 PTI/Business Standard

Control of Jet Airways could pass into hands of Etihad after deal: Sebi

New Delhi/Mumbai: Capital markets watchdog Sebi has written to the Foreign Investment Promotion Board (FIPB) expressing concern that control of Jet Airways, India's largest private airline by revenues, could pass into foreign hands because of the manner in which its 2,000-crore deal with Etihad Airways has been structured. Sebi's communication could queer the pitch for the biggest foreign investment in India's aviation industry after the sector was opened up to foreign carriers last year.
"Sebi has given its views on effective control. It has raised concerns on the issue of control being passed into the hands of the acquirer," said a senior government official privy to the development.
The regulator has also told Jet and Etihad that the right to appoint board members should be proportionate to shareholding and that the foreign investor should not enjoy powers such as the right to appoint a vice-chairman and automatic representation on the audit committee, according to people familiar with Sebi's thinking on the matter.
22/07/13 Deepshikha Sikarwar & Reena Zachariah/Economic Times

Jet-Etihad deal: a trap for large investors?

Mumbai: Mired in controversy, the Rs 2060 crore deal between India's largest private airline company Jet Airways and Abu Dhabhi-based Etihad Airways is proving to be a trap for large investors (both foreign and local) who had been betting big on the deal while hiking their stakes in the former when shares were trading strong.
Talks of the deal were brewing since the beginning of the year. Investors flocked towards the galloping counter as Etihad had agreed to pay over 30% premium for acquiring a stake of 24% in the Indian company.
During the first half of CY13, foreign institutional investors (FIIs) scaled up their holdings in Jet from 4.27% in December, 2012 to 7.92% as on 30 June. While domestic institutions (DIIs) too did not lose the opportunity of riding on the deal and increased their exposure by around a percentage point to 8.16%.
All this happened during a period which saw Jet Airways' promoter Naresh Goyal diluting his stake in the company by 5 percentage points from 80% to 75%. And, average price of Jet Airways' stocks hovered around Rs 550 a piece.
22/07/13 Chandan Kishore Kant/Business Standard

Aviation Min has no role in Jet Air's Heathrow deal: Srcs

The aviation ministry has denied malpractice charges in allowing Jet Airways sell its three slot pairs at London’s Heathrow Airport, exclusive sources told CNBC-TV18.
The government has no role in slot allocation at the airport and the airline had obtained necessary approval before selling its slots at the airport, ministry officials said.
Also, putting aside allegation that national carrier Air India’s operations were impacted due to this transaction, sources further said that AI utilizes only two slots of the four allotted to it at the airport and hence the allegation is baseless.
22/07/13 Sumit Jha/CNBC-TV18/moneycontrol.com

Flying in the face of discontent

When Etihad Airways announced in April it was picking up a stake in Jet Airways, it seemed like the long-delayed deal was finally ready to be signed, sealed and delivered. But nearly three months later, the agreement has run into controversy again and the big question everybody is asking is: will Jet manage to cross all hurdles and get the $379-million investment the United Arab Emirates' (UAE) airline has offered for a 24 per cent equity stake?
Most market observers expect the deal to go through despite a torrent of objections. The agreement hit a snag after the Foreign Investment Promotion Board (FIPB) and stock market regulator SEBI raised questions about ownership and effective control of the Indian airline passing into foreign hands.
Media reports say Etihad plans to control Jet through a clutch of management committees populated by its nominees and shift Jet's offices as well as many back-end activities to Abu Dhabi. Etihad Airways declined comment on the issue: "We are engaged in the regulatory process and it would therefore be inappropriate for us to comment."
22/07/13 K.R. Balasubramanyam/Manisha Singhal/Business Today

Foreign players unhappy over rules on aviation deals

New Delhi: India’s twin plans of replacing its vintage Avro carriers for the air force and opening up the military aviation sector for private companies appear to have hit a roadblock.
In May, the Defence Ministry issued a global tender for a Rs 12,000-crore programme to acquire 56 carriers for replacing Indian Air Force's vintage Avros fleet. While the first 16 aircraft will be delivered by a foreign manufacturer in flyaway conditions, the remaining 40 will be made in an Indian production facility, be it in the public or private sector. The underlying aim was to open up military aviation for private companies.
But foreign vendors are now raising red-flags. They are showing their discomfort to tie up with an Indian company and start a production facility only for the sake of producing 40 aircraft.
“It will be not be easy because the aircraft to be produced are not so many,” officials from one of the companies participating in the tender process told Deccan Herald.
22/07/13 Kalyan Ray/Deccan Herald

Tripura seeks flights to Bangladesh

Agartala: The Tripura government has urged the civil aviation ministry to operate flights from Agartala airport to Bangladesh and adjoining countries to boost trade and tourism, officials said here Monday.
A state government official said Civil Aviation Minister Ajit Singh has assured Tripura Chief Minister Manik Sarkar that he will examine the issue of operating flights from Agartala to cities in Bangladesh and neighbouring countries.
Sarkar met Singh in New Delhi Friday and discussed modernisation of Agartala airport and making Kailashahar and Kamalpur airports in northern Tripura operational.
Agartala airport is the second busiest one in the northeast region after Guwahati airport in Assam. About 22 flights operate to and from Agartala everyday, carrying about 2,700 passengers per day.
"In view of the increasing traffic volume at Agartala airport, the Airport Authority of India (AAI) has prepared a plan for development of the airport," Sarkar said in a memorandum to the union minister.
22/07/13 IANS/News Track India

Air Chief Marshal NAK Browne flies to US for big copter deal

New Delhi: At a time when the Indo-US military relations have hit a plateau with no further significant progress in the ties, Air Chief Marshal NAK Browne, who is also the chairman of chiefs of staff committee, has reached the US on a visit that aims at refreshing the bond between the two nations.
Apart from holding talks with the top US military officers, including chairman of Joint Chiefs of Staff General Martin E. Demspey, Browne will himself take delivery of the second C-17 Globemaster III transport aircraft at the Boeing's assembly facility in Long Beach, California.
India had ordered 10 of the super heavy strategic lifters and the first of the lot was delivered last month. The IAF is expected to get two more aircraft by August end when the C-17 squadron would officially be commissioned in a ceremony at Hindon airbase, which would be the home for new aircraft.Browne's visit takes place in the backdrop of several pending deals being negotiated by the nations. The IAF has already selected Boeing's Apache attack helicopters and Chinook heavy lift helicopters. The price negotiations for 22 attack and 15 heavy-lift helicopters are underway.
22/07/13 India Today

Air India pilot sues Wyndham over robbery, indifference

An Air India pilot is suing the owner of the new Wyndham Grand Chicago Riverfront hotel on Wacker Drive, claiming someone broke into his room while he was sleeping and stole more than $500. He is also claiming hotel employees did not help him following the robbery and one employee may have been an accomplice.
Captain Pankul Mathur, who is joint general manager of operations for Air India, says on April 15 he awoke at about 10:45 p.m. to someone banging on his hotel room door. When he opened the door, he says a large African-American woman pushed her way in, found his wallet next to the bed, and took all of his cash.The woman left the room and called for an elevator. Mathur says he ran into the hallway, screaming that he had been robbed. A housekeeper who was nearby, he says, calmly responded, “it’s not my job to call the police.”
The woman then allegedly told the housekeeper that Mathur had “called me for prostitution and was not paying so I am just taking his money.”
At that point, Mathur says the housekeeper told the woman that she would back her story, leading him to suspect she was an accomplice. He rode with the woman down to the lobby. Despite screaming that he had been robbed, he says there was no response from hotel employees in the lobby. Only after the woman had walked out of the hotel did two security guards follow her but only for a few steps. They returned and told Mathur that since she was no longer on the premises, they could not stop or detain her.
The $50,000 personal injury lawsuit was filed in Cook County Circuit Court on July 16. Mathur is suing Hospitality Properties Trust, which purchased Hotel 71 last November. The hotel re-opened on June 12 as a Wyndham.
22/07/13 Steven Dahlman/Loop North News

Two held in separate bids to smuggle drugs, gold

Mumbai: Two persons, including a Nigerian, were arrested from Mumbai international airport in two separate incidents of alleged attempt to smuggle in drugs and gold collectively worth Rs 7.46 crore, a senior customs official said.
According to Air Intelligence Unit of the Customs, a Nigerian passenger Ukegbu Onwuka Okpan, who arrived on an Ethiopian Airlines flight yesterday at about 5 AM, was found carrying the contraband in his luggage during a check at the Chhatrapati Shivaji International Airport.
"He was subsequently arrested. The seized 6.82 kg of amphetamine drugs is valued at Rs seven crore in the international market," the official said.
"It appears that the accused, who came to Mumbai from Nigeria via Addis Ababa, wanted to return the contraband as it was not accepted by the purchaser in his country. We are probing the case in this angle," the official added.
22/07/13 PTI/Business Standard

Sunday, July 21, 2013

Woman, hubby nabbed for smuggling gold in underwear

Mangalore: In an apparent first, sleuths of the directorate of revenue intelligence, based on a tip-off, arrested a man and his wife on charges of smuggling gold at Mangalore International Airport on Saturday.
The family - Fathima Nazreen and her husband - Arshad Ali Mushtaq Ahmed of Bhatkal - who arrived from Dubai by Air India Express flight at 9.30am were detained and during a search, 2 kg of gold valued at Rs 50 lakh was recovered from Fathima.
"The gold - two biscuits and gold chains that was wrapped - were concealed in the undergarments worn by Fathima," sources said. Fathima, her husband and their five-year-old child were detained and the duo was formally arrested.
21/07/13 Times of India

Saturday, July 20, 2013

Australia welcomes Air India plans for direct flights

New Delhi: Australia Friday welcomed Air India's plans to deploy its newly-acquired Boeing 787 aircraft to the country from next month.
"The direct Air India flights are yet another example of the strength in the Australia-India relationship, and the rapidly expanding people-to-people links between our two countries," High Commissioner Bernard Philip said.
"We expect Indian visitor numbers to Australia to nearly double by 2020, so these direct flights will benefit many Indian business travellers, students, migrants, tourists and families," he added.
The national carrier plans to operate direct daily flights between India and Australia from Aug 29, 2013.
There were around 450,000 people of Indian origin living in Australia in 2012 and India has also become the largest source of skilled migrants to Australia.
19/07/13 IANS/Business Standard

FIPB to discuss Jet-Etihad deal on July 29

New Delhi: The Foreign Investments Promotion Board (FIPB), is set to discuss the Jet-Etihad deal on July 29. The board had deferred the decision on the deal in its July 14 meeting.
In April, Jet Airways had announced the sale of 24 per cent stake to Abu Dhabi-based Etihad for Rs 2,058 crore.
The stake sale proposal is the biggest deal in the Indian aviation industry after the government's announcement in September last year that relaxed foreign direct investment norms in aviation, allowing foreign carriers to buy stake in Indian carriers.
However, capital markets regulator Sebi, along with the ministries of civil aviation and corporate affairs, raised concerns over the Rs 2,058 crore deal at the July 14 meeting.
20/07/13 Indian Express

Son of man acquitted in Air India bombing loses battle to recover legal fees

The B.C. Court of Appeal has rejected a bid by the son of one of two men acquitted in the Air India bombing to recover his full legal fees fighting allegations of professional misconduct before the Law Society of B.C.
In October 2010, a society review panel dismissed all accusations against Jaspreet Malik, whose father was acquitted of the terrorist strike. He asked the court to help him obtain more of a reimbursement for the expense of fighting those charges.
Justices Ed Chiasson, Mary Newbury and Daphne Smith, agreed the review panel’s award of 35 per cent of legal fees plus disbursements and taxes was not unreasonable. Justice Chiasson said the legal regulatory watchdog might consider adjusting its approach to costs given recent jurisprudence in the area, but it was not obliged to do so.
19/07/13 Vancouver Sun

Turtle that inspired Ninja cartoon smuggled as pet

Kolkata: The 10,000 turtles seized at Kolkata airport on Thursday suggest that the city is a transit hub in the worldwide smuggling of exotic wildlife species as pets.
The walnut-sized baby turtles were identified as exotic red-eared sliders, native to South America, central, southern and western USA and Mexico. Each of them would have sold for Rs 500 in India, which means the consignment was worth at least Rs 50 lakh, said additional principal chief conservator of forests, Pradeep Vyas.
There is a huge demand for these small turtles in South Indian households and also Pune and Mumbai, said state wildlife advisory board member Dipak Mitra.
Smugglers find it legally convenient to deal with such species since they are not protected under the Wildlife Protection Act, said Shailendra Singh of Turtle Survival Alliance , a sister organization of the International Union for Conservation of Nature (IUCN).
20/07/13 Krishnendu Mukherjee/times of India

Thursday, July 18, 2013

Air India hit by staffing row over foreign postings

At least 25 officials from the former Indian Airlines have been offered foreign postings, while only four from erstwhile Air India were offered similar assignments at airports abroad, leaving the employees linked to the latter fuming.
The officials from Air India (International), erstwhile Air India, which oversees international operations of the merged entity, have moved the court against the AI management's decision, alleging bias in favour of erstwhile Indian Airlines employees.
"We have filed a case which is getting postponed on an indefinite basis. But that does not stop us from getting a say on one-sided implementations," said an Air India official.
Out of 25 officials from Air India (domestic), 22 are going on an immediate replacement, while two with definite dates and one on commencement of operations, said the official.
The AI Saga
"Look at the four AI (International) officers. Three have to wait for commencement of flight operation and only one on a definite basis. Most of these foreign stations where IA officials have been posted are not for them because they do not have any practical experience about handling airports in a foreign land," said the official.
18/07/13 Sanjay Singh/Daily Mail

Pak docs save Thane man after mid-air heart attack

The ministry of external affairs yesterday confirmed that on June 24, Vasant Bondale, a resident of Thane, was given life-saving treatment in a Karachi hospital after he suffered a heart attack on board an Istanbul-Mumbai flight. This despite the fact that Vasant, his wife Nalini, and her brother Vijay Phadnis, did not have Pakistani visas.
Nalini told Mirror yesterday, "I was not scared of landing in Pakistan as the priority was to save my husband. It was of course on my mind that we had no visas, but the Pakistani authorities never brought it up. In-fact, their cooperation is something that we don't have words to express. They treated us like family."
On June 24, Vasant (76) and Nalini (72) were on their way back to India after a 10-day Scandinavian tour when Vasant suffered a heart attack mid-flight.
Vasant was first attended to by Dr Sudhir Deodhar, a resident of Kolhapur and a member of the Scandinavian tour group. After the pilot of Turkish Airlines flight TK 720 made an in-flight announcement asking for doctors to volunteer, the crew realised there was also a cardiologist -Dr Sudhir Bhate - on board.
Dr Bhate attended to Vasant, who soon began to respond to the medicines. Dr Bhate quickly confirmed that Vasant was in the midst of a cardiac arrest and recommended that he be taken to the nearest hospital as soon as possible.
"Karachi ATC told us the pilot was requesting an emergency landing due to a medical emergency. They confirmed that the request had been granted," said Junaid Kausar, manager, operations, for Turkish Airlines in Karachi.
 "The medical team rushed Vasant to the Aga Khan University Hospital, one of Pakistan's best. Vasant was put on a ventilator in the cardiac care unit and a team of doctors were quickly on the job," Junaid added.
After doctors saved Vasant's life, one question remained on everyone's mind - how would Pakistan authorities react to their lack of visas? However, their fears were soon put to rest - not only were they not asked for a visa, but in their own words, were "treated life family".
19/07/13 Bipin Kumar Singh and Jayadev Calamur
/Mumbai Mirror

Indian found unconscious at UAE airport, battling for life

Dubai: A 51-year-old Indian expatriate is battling for life after he was found unconscious at Sharjah International Airport, 15 hours after his flight took off.
Sambandan Siva is currently in a coma at Dubai's Rashid Hospital. His condition is critical, his employers said.
Siva, who works with the UAE-based Al Huraiz Group, had taken a month's leave to go to Chennai as he was not keeping well. He was booked on an Air Arabia flight on the evening of July 2.
His employers said Siva had completed check-in and immigration and was waiting to board his flight when he fell unconscious. But it was not until the next morning that he was discovered in that state.
"I really don't know whom I should blame, the airport authority who didn't notice [him] for 15 hours or the airline which didn't bother to check for the passenger after issuing the boarding card," a company official said in a complaint to airport authorities.
19/07/13 PTI/NDTV.com

Jet faces new irritant

New Delhi: The Central Vigilance Commission (CVC) today sought a “factual report” from the civil aviation ministry on a complaint of alleged corruption in the Rs 2,058-crore deal between Jet Airways and Abu Dhabi’s Etihad Airways.
BJP MP Nishikant Dubey wrote to the commission last month alleging that Jet in collusion with senior civil aviation ministry officials was causing a revenue loss of Rs 500 crore to the national exchequer through the deal.
Dubey’s complaint has been sent to the chief vigilance officer of the civil aviation ministry to furnish a factual report to the commission, official sources said.
The agreement between the two airlines has been engulfed in controversy ever since it became public.
18/07/13 The Telegraph

Emirates flight grounded in Thiruvananthapuram

Thiruvananthapuram: A dent formed on the panel of the cargo hold area of the Emirates aircraft that arrived from Dubai in the wee hours of Thursday resulted in the grounding of the aircraft. The dent was reportedly formed after the loading and unloading equipment hit the aircraft. Airport sources said that the incident took place at 3.45 a.m. in the international airport when the FMC equipment of the Air India SATS Airport Services Private Limited (AISATS) was trying to shift the containers from the cargo hold area of the aircraft.
Airport sources said the negligence of the AISATS staff led to the incident. Following this, the EK 523 flight from here to Dubai had to be cancelled, causing inconvenience to checked-in134 passengers.
19/07/13 The Hindu

Canadian woman with 38 bullets arrested at airport

A 68-year-old Canadian woman with a passion for shooting sports, found herself in trouble after she was caught with 38 live cartridges at the city airport. She was arrested and remanded in police custody. A case was registered against her under the Arms Act, the police said.
According to sources, the incident took place on Tuesday when the accused, Irene Mathias, was on her way to London in a British Airways flight.
During the security check, MIAL security officials found bullet like objects in one of her baggage.
18/07/13 Shahkar Abidi/Daily News & Analysis

Global concerns on DGCA's safety norm

New Delhi: The government's continued failure to strengthen the Directorate General of Civil Aviation (DGCA) and provide adequate safety oversight on ever-growing air traffic here is now leading to alarm bells ringing globally. While the International Civil Aviation Organization (ICAO) will audit the DGCA next month along with the US Federal Aviation Administration (FAA), the Japanese civil aviation authority and the European Aviation Safety Agency (EASA) have also raised concerns about the state of aviation safety here as aircraft of Indian carriers fly to those places.
The government says it will create a powerful civil aviation authority that will remove all the deficiencies of the DGCA but that may take about two years and the worries of the international community will remain till then. "Japan had sought technical clarification on the Boeing-777 that an Indian carrier flies to the country. DGCA has sent a reply. Japan is not giving Air India permission to operate the Boeing 787 Dreamliner to the country and the aviation ministry is taking up the issue with them," said sources.
18/07/13 Saurabh Sinha/Times of India

CVC seeks report from Aviation Ministry on Jet-Etihad deal

New Delhi: The Central Vigilance Commission (CVC) has sought a “factual report” from Ministry of Civil Aviation on a complaint of alleged corruption in the Rs 2,058 crore deal between Jet Airways and Abu Dhabi’s Etihad Airways.
The move came after BJP MP Nishikant Dubey wrote to the CVC last month alleging serious fraud to cheat the Union government and cause a huge revenue loss of Rs 500 crore to the national exchequer by Jet Airways in collusion with senior Civil Aviation Ministry officials.
The letter (of Dubey’s complaint) has been sent to Chief Vigilance Officer of Ministry of Civil Aviation to furnish a factual report to the Commission, official sources said.
The multi-crore agreement between the two aviation industry majors has been controversial ever since it became public, with opposition BJP claiming “something fishy in the deal“.
18/07/13 PTI/The Hindu

Airlines keep 787 flying as probe seeks cause of fire

Airlines are keeping Boeing's 787 Dreamliner flying, and are sticking with their orders for the new jet as safety investigators look for what sparked a fire in one of the planes while it was parked at London's Heathrow Airport.
The fire caused extensive heat damage to the rear fuselage, sent smoke throughout the cabin and scorched the outer hull, according to Britain's Air Accidents Investigation Branch, which is leading the probe.
The AAIB said there appeared to be no connection between the latest fire and lithium-ion batteries that burned on two 787s in January, prompting regulators to ground the fleet for 3-1/2 months.
Last week's fire aboard the Ethiopian Airlines jet has raised concerns about a possible problem in the plane's complex electrical system, which analysts said could be a concern for investors.
18/07/13 Reuters/Economic Times

Jet Airways Enters Into A Reciprocal Frequent Flyer Partnership With Air New Zealand

Mumbai: Jet Airways, India's premier international airline, has entered into a reciprocal frequent flyer partnership with Air New Zealand.
Air New Zealand an international and domestic airline group provides flights within New Zealand, to and from Australia, the South West Pacific, Asia, North America and the United Kingdom.
JetPrivilege members may now earn and redeem their JPMiles on the entire network of Air New Zealand marketed and operated flights. Similarly, Air New Zealand's Airpoints™ members will be able to accrue and redeem Airpoints Dollars™ on the entire network of Jet Airways and JetKonnect marketed and operated flights.
With the addition of Air New Zealand, JetPrivilege members will be able to earn and redeem their miles across 24 airline partners.
17/07/13 India PRwire

Malaysia Airlines plans service from Kochi

Kochi: Five Malaysia Airlines officials have landed to hold discussions with the Cochin International Airport Ltd (CIAL) authorities for starting services from here.
The team on Tuesday inspected the facilities at the airport and will hold discussions with airport officials, including director A.C.K. Nair on Thursday on facilities they would want.
The airline is keen on operating services not only to Malaysian capital of Kuala Lumpur but also to European destinations and to cities in the US through Kuala Lumpur. The first service is expected by September.
Air Asia is currently operating daily service to Kuala Lumpur and it has plans increase flight frequency and become a partner in the maintenance hangar at the airport managed by the subsidiary CIASL.
18/07/13 Vinod Nedumudy/Deccan Chronicle

Tuesday, July 16, 2013

Jet-Etihad deal may skid on valuation runway

Mumbai/New Delhi: Etihad Airways, which had earlier agreed to buy a 24 per cent stake in Jet Airways, has sought a reduction in the premium it was willing to pay on the shares of the Indian carrier. This is seen as a condition put by the Abu Dhabi-based airline for extending the agreement-closure deadline, which ends on July 31.
A top source associated with the deal said: “The agreement has a clause that deal can be terminated if requisite permissions are not received before July 31. However, the discussions are now on to renegotiate the terms of the deal at a price lower than that agreed upon earlier.” The two airlines are now discussing changes in the investor agreement. These include a possible revision in purchase price.
Under the agreement signed by the airlines on April 24, Jet Airways had agreed to issue 24 per cent equity to Etihad by way of preference shares in a deal valued at about Rs 2,060 crore. Etihad had agreed to a pay a premium of 31 per cent on Jet’s stock price (Rs 573 at that time). The Jet stock on Tuesday fell four per cent from its previous close on BSE to end the day at Rs 403.45.
17/07/13 Aneesh Phadnis & Sounak Mitra/Business Standard

Call on aviation FDI cap of 74% deferred

New Delhi: The government's decision to let the Cabinet Committee on Security clear FDI proposals beyond 26% in the defence sector technically leaves it open for CCS to even allow 100% foreign investment in what the defence ministry will define as "state-of-the-art" segments with safeguards built in to ensure that the technology and equipment are not shared with other countries.
Defence minister A K Antony had concerns over allowing higher FDI, but it was pointed out that while the policy did not specify the CCS option, it could be readily incorporated. An incorrect impression had been created that the CCS caveat was being done away with.
Indian companies keen on foreign tie-ups include L&T, Mahindra & Mahindra and the Tatas. US firm Lockheed Martin is understood to be interested in a collaboration with the Tatas. India Inc cheered the changes. "...it indicates that reforms are underway. Large number of sectors have either seen an increase in FDI cap or have moved under the automatic route from the Foreign Investment Promotion Board (FIPB) approval," Ficci president Naina Lal Kidwai said.
17/07/13 Times of India

Abu Dhabi's Etihad says working towards Jet Airways deal deadline

Abu Dhabi:  Etihad Airways is working towards meeting a July 31 deadline to win regulatory approvals on its planned $379 million purchase of a stake in India's Jet Airways, the Abu Dhabi-based carrier said on Wednesday.
Etihad, which is on an acquisition drive, agreed in April to buy a 24 percent stake in Jet in a deal that would provide India's largest carrier with a deep-pocketed global partner as well as cash to help pay off debts.
But political concerns and scrutiny by Indian market regulators have delayed the deal and it risks missing a so-called "long-stop" date of July 31, before which regulatory approvals had to be secured.
17/07/13 Economic Times

Sebi's tough talk on takeovers spells fresh trouble for Jet Airways, Etihad Airways deal

New Delhi: Hinting at more trouble for the proposed buyout of 24% stake in Jet Airways by Abu Dhabi carrier Etihad, Sebi chairman UK Sinha on Tuesday said any entity acquiring “control” of a listed Indian company would need to make an open offer for public shareholders even if it is below the 25% threshold of the trigger.
While he did not specifically comment on Jet-Etihad deal, he said that Sebi’s position is very clear about any deals involving substantial acquisition of shares and takeovers.
“Sebi will be looking into any case where there is a suspicion or belief that control has been acquired. Sebi will apply its tests and take a decision accordingly,” he said.
Seperately, Sinha also said that stringent action will be initiated against the companies which do not comply with the minimum listing norms prescribed by Sebi. The chairman further added that finance ministry has assured Sebi that all public sector entities will offload government stake in line with the 10% public float regulation.
17/07/13 Financial Express

Air India to fly to Australia from August

New Delhi: In its global expansion spree using the Dreamliner fleet, Air India today said it would launch daily non-stop flights from Delhi to Sydney and Melbourne from August 29.
With the launch of these services, Air India would become the first airline to operate the new Boeing-787 Dreamliner to the Australian continent, a spokesperson said.
In a bid to attract travellers, the airline is offering attractive promotional fares on this route in both directions which would be available for a limited period, he said.
Air India would be getting the delivery of three more Dreamliners by August end, which would take the total number of these planes in its fleet to 10.
The airline would operate the daily services on a triangular route -- Delhi-Sydney-Melbourne-Delhi on four days and Delhi-Melbourne-Sydney-Delhi sector on three.
17/07/13 PTI/Economic Times

Air India to operate one more direct flight to Yangon

Kolkata: Air India will operate an additional direct flight between Kolkata and Yangon from Wednesday.
Currently, it operates two flights a week — on Mondays and Fridays.
According to an Air India spokesperson, the additional flight will be in service till September considering the growth in demand. The Kolkata-Yangon direct flight will now be available thrice a week.
Air India may also continue the service beyond September if there are more flyers , the spokesperson added.
Indian Chamber of Commerce (ICC) recently urged Union Minister of Civil Aviation Ajit Singh to introduce an additional flight on Wednesdays on this route in view of the increasing prospects for bilateral trade between India and Myanmar.
16/07/13 Business Line

International tourist groups to get landing permits

Panaji: Goa tourism has a reason to feel buoyant.
The Union ministry of home affairs has issued a circular for granting of collective landing permits to tourists in a group of four and more, and who may be granted visa-on-arrival facility.
Travel and tourism association (TTAG) president Francisco Braganca said this was a welcome step and it would help boost Goa tourism in a big way.
In April this year, more international airports across the country, including Dabolim airport, were granted permission to offer visa-on-arrival facilities to foreign tourists, which was earlier offered at only four international airports in the country.
Braganca said visa-on-arrival facility though extended to Dabolim airport, was not applicable to foreign tourists of all nationalities. A fresh announcement by the home affairs ministry has no such reservation.
17/07/13 Times of India

SpiceJet phases out expats on falling

New Delhi: The falling rupee has made airlines act in an area where they have dragged their feet for years - phasing out expat pilots. Low cost carrier SpiceJet has brought down its number of expat pilots, all of whom are commanders, from over 100 a year ago to just 25 now. With an expat commander getting almost three times more than the average Indian commander's monthly pay of Rs 5 lakh, the airline is looking at saving Rs 90 crore per annum.
Even the remaining 25 expat commanders are set to be eased out by the end of this calendar year. Airline sources said the expats are now only for the Bombardier Q-400 aircraft, as being a new plane in India, there are not enough desi pilots for it. "The Boeing 737 fleet is being operated fully by Indian pilots for the past three months. We are now the only airline in India whose mainstay fleet is operated only by Indian pilots," said the source.
17/07/13 Saurabh Sinha/Times of India

Law firm to sue Boeing over Asiana crash

Chicago: A Chicago law firm has taken steps to sue Boeing Co. on behalf of 83 people who were aboard the Asiana Airlines flight that crash-landed in San Francisco earlier this month, alleging that a malfunction of the plane's autothrottle may have caused the crash.
Ribbeck Law Chartered on Monday filed a petition for discovery, which is meant to preserve evidence, in Cook County Circuit Court in Chicago, where the aircraft manufacturer is headquartered. The firm said in a news release that additional pleadings will be filed against Asiana Airlines and several component parts manufacturers in coming days.
In addition to potential problems with the Boeing 777's auto throttle, some emergency slides reportedly opened inside the plane, injuring passengers and blocking their exit, and some passengers had to be cut out of their seatbelts with a knife, the firm contends.
Three Chinese teenage girls were killed when the airplane, carrying 307 passengers and crew on a flight from South Korea to San Francisco International Airport on July 6, approached the runway too low and slow. The plane clipped a seawall at the end of a runway, tearing off the tail and sending the plane spinning down the runway. The impact caused the plane to catch fire.
17/07/13 AP/Times of India

Monday, July 15, 2013

Jet, Etihad dilute three crucial clauses in shareholder agreement to pacify SEBI, FIPB

Mumbai: Jet Airways and Etihad have reworked their shareholder agreement following stiff opposition from regulators and the government regarding some provisions that appeared to give minority partner Etihad substantial say in the running of the airline. Three critical clauses in the shareholder agreement have been watered down to pass muster with markets regulator Securities and Exchange Board of India (Sebi) and the Foreign Investment Promotion Board (FIPB), which deferred approval to the investment last month.
The revisions may make it easier for the partners to argue their case, and possibly secure approval. It would also help in deflecting attention from the controversy surrounding the deal, though another round of governmental scrutiny into the changes cannot be ruled out.
Jet and Etihad struck a landmark agreement in April this year under which the Middle-Eastern carrier agreed to buy 24 per cent of Jet for about $600 million. Etihad paid a premium of 34 per cent over the market price though it was not getting control, leaving many wondering whether there was a quid pro quo in the form of additional powers in the shareholder agreement. Sebi was the first government agency to question the deal, especially the clauses in the agreement giving Etihad the power to approve a number of transactions.
16/07/13 M Padmakshan/Economic Times

Revenue department to look deeper into Jet-Etihad deal

The Revenue Department is looking deeper into the proposed Rs 2,058 crore Jet-Etihad deal to identify the beneficial owners and check whether it is structured in a way to evade taxes.
"Revenue department is looking into the clause of beneficial ownership of the Jet-Etihad deal. The Department will have to see the tax implications of the deal whether it is meant to evade tax," a finance ministry official said.
The Finance Ministry has already sought more clarity on the clauses concerning effective control of the new company and has written to market regulator Sebi for a report on its ownership structure.
"As per the shareholder agreement and governance agreement submitted by Jet, the final ownership goes into the foreign hands," the official claimed.
The Foreign Investment Promotion Board (FIPB) had last month deferred a decision on the deal, which is the largest foreign investment proposal in the Indian aviation sector, and sought clarity on control and ownership.
15/07/13 PTI/Daily News & Analysis

AI former MD joins Oman Air Board

What can only be seen as good news for Oman’s national airline is the induction of two very experienced aviation industry professionals into the Oman Air family.
V Thulasidas, a retired officer of the IAS (Indian Administrative Service), has joined in the capacity of advisor and board member at Oman Air. Also, Samer Majali, who resigned as Gulf Air CEO in December 2012, has been appointed in a ‘top position’, say Oman Air sources.
Prior to this, Thulasidas was managing director of Kannur International Airport Limited in northern Kerala, a project that is currently under construction. He was also the first chairman and managing director of the new unified entity Air India, created by the merger of Air India and Indian, the domestic national airline.
Majali has been largely credited for the success of Royal Jordanian Airlines which he headed from 2001-2009.
15/07/13 Mohana Prabhakar/Muscat Daily.com

Qatar Airways to use A330 on Kochi-Doha sector

Mumbai: Gulf-based carrier Qatar Airways today said it will service its Kochi-Doha sector with a wide body A330, replacing narrow body Airbus 321 to cater to the enhanced demand.
The A330, with a two-class configuration of 248 seats in economy and 36 seats in business class, will be operational on all 11 frequencies to and from Kochi connecting to more than 125 destinations across the world via the airline's hub in Doha, a Qatar Airways press release said here.
The airline currently operates 95 flights a week from 12 cities-Kochi, Mumbai, Ahmedabad, Amritsar, Goa, Hyderabad, Kolkata, Kozhikode, Trivandrum, Chennai and Bengaluru and Delhi.
16/07/13 Economic Times

Madurai-Dubai Air link to in 6 months

Aruppukottai: Flight service to Singapore and Dubai will be introduced from Madurai in six months, said Union Minister of State for Civil Aviation K.C. Venugopal here on Sunday.
Commissioning the newly converted broad gauge section between Manamadurai and Virudhunagar here, he said that the Madurai airport runway had to be extended to at least 12,000 feet for operation of international flights. (As of now the Madurai airport runway has a length of about 7,500 feet only).
Though sufficient land had been acquired by the State Government, some more had to be acquired and handed over to the Airports Authority of India (AAI) following a need to realign the highway that runs nearby.
“The Centre was ready to extend all possible financial help. But right now there is shortage of manpower, including pilots. Efforts are under way to recruit the required manpower and the exercise will be over early next year,” the Union Minister said.
16/07/13 The Hindu

Embassies to get airport benefits on reciprocal basis only

New Delhi: After several incidents of denial of protocol to Indian dignitaries at foreign airports, the Ministry of Civil Aviation has decided that Aerodrome Entry Permits (AEPs) would henceforth be issued to high commissions or embassies of other countries only on a reciprocal basis.
It has also been proposed that access of Indian VIPs to airports be restricted, preferably only up to the terminal building.
The US and European countries do not grant entry permits to Indian embassies, but, on the recommendation of the Ministry of External Affairs, permanent as well as transferrable AEPs are issued to embassies based in India. As per the details of a soon-to-be released AEP policy, details of which were accessed by The Indian Express, that will now be stopped.
A few select embassies enjoy the facility of transferrable AEPs, the details of which are not even forwarded to the Bureau of Civil Aviation Security (BCAS).
15/07/18 Ajmer Singh/Indian Express

Emirates, Qatar may ask for more flying rights

New Delhi: The recent grant of additional flying rights to Abu Dhabi may lead to similar demand being raised by other Gulf carriers like Emirates and Qatar. Top aviation ministry sources said being one country, individual demands of the UAE's seven emirates or principalities for more bilateral for their airlines are difficult to be considered favourably.
"Abu Dhabi and Dubai are barely 100 km apart. Some years back, substantial flying rights were given to Emirates of Dubai. Now 36,670 more weekly seats over three years have been allowed to Abu Dhabi's Etihad. Demand for more capacity from one region has to be measured and seen in context what Indian carriers and India gets in return," said a top ministry source. While Emirates is learnt to be seeking about 24,000 more weekly seats, Qatar wants double of that.
"All these Emirates are part of UAE and individual demands for more bilateral will be difficult to accede to. Southeast Asia is emerging as the hotbed of economic growth. There is need for more connectivity between India and Southeast Asian countries like Singapore, Indonesia, Malaysia, Vietnam and even Australia.
15/07/13 Saurabh Sinha/Times of India

British Dreamliner fire probe looks at Honeywell part

London: British investigators said today they were examining a transmitter made by US group Honeywell as part of a probe into a fire on a Boeing Dreamliner jet at London's Heathrow Airport.
The Air Accident Investigation Branch (AAIB) has previously said that the blaze on an Ethiopian Airlines 787 was not down to overheating batteries that have caused problems with other Dreamliners.
"We can confirm that Honeywell have been invited to join the investigation," an AAIB spokesman said.
"The emergency locator transmitter (ELT) is one of several components being looked at in detail as part of the investigation and it would be premature to speculate on the causes of the incident at this stage," he added.
"The travelling public can be sure we are investigating all possible causes and following up all leads."
16/07/13 PTI/ZeeNews

Jet Airways says Etihad investment to be completed in a few months

New Delhi: Jet Airways (India) Ltdexpects investments by Abu Dhabi's Etihad Airways in the airline to be completed within the next few months, Jet Chairman Naresh Goyal wrote in the company's annual report.
Etihad in April agreed to buy a 24 percent stake in Jet for $379 million. It is also making a $150 million equity investment in Jet's frequent flyer programme, and spent $70 million to buy Jet's three pairs of Heathrow slots through a sale and leaseback agreement announced in February.
"All these investments...are subject to obtaining the requisite regulatory and corporate approvals and nal commercial agreements, which is expected to be completed within the next few months," Goyal wrote to shareholders.
16/07/13 Reuters/Economic Times