Maldivian Open to Investing in Indian Private Carrier

Mumbai: Maldivian, the national carrier of Maldives, which recently announced its expansion plans with flights to Mumbai and Chennai from November, has said that it is not averse to investing in some of the Indian private carrier if there is an opportunity.
"If given an opportunity, we will definitely do so (investing in some private carriers)," Maldivian managing director Abdul Harris said here.
He said that the policy change allowing up to 49 per cent foreign direct investment by the foreign carriers in the domestic airlines is a "great initiative" by the government and will provide a level-playing field.
Nevertheless, Maldivian, the airline division of Island Aviation Services Ltd, already has collaborations with Indian companies in the segment for providing different services to the carrier.
30/09/12 Outlook India

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Cancellation of Air India Express flight to Kochi draws ire

Muscat: Hundred-and-eighteen passengers who were supposed to fly from Muscat to Kochi, the commercial capital of the southern Indian state of Kerala, in an Air India Express flight, were accommodated in hotels in Ruwi as their flight developed a "technical glitch-.
"The aircraft has developed a technical glitch before its flight. Engineers are doing their best to resolve the problem. As soon as the problem is resolved, the passengers will be flown to their destination,- Amresh Chaudhary, country manager of Air India in Muscat, told Times of Oman.
Meanwhile, the passengers who were stranded due to the flight cancellation were seen visibly agitated at the airport
"The flight was to take off at 11.50am and all the passengers had checked in. There was no information initially. We were waiting for the bus to transports us to the aircraft. By 12pm, some officials came and said that the flight could only leave the next day,- Reji Sahul, one of the stranded Air Indian Express passengers, said.
30/09/12 Times of Oman

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MidEast airlines best for passenger, cargo growth

Airlines from the Middle East posted the strongest growth in both passenger and cargo operations in August, the International Air Transport Association (IATA) said on Saturday.
The region's carriers continued to expand rapidly - particularly on long-haul segments - although the 16.7 percent growth was likely boosted by the impact of Ramadan, IATA said in a statement.
Capacity on Middle East airlines expanded by 13.3 percent in August which took load factors to 78.4 percent.
Middle East carriers also saw an 11.3 percent increase in cargo demand against a 10.4 percent increase in capacity which was the strongest performance globally.
Worldwide, demand for air passenger travel expanded by 5.1 percent in August compared to the same month in 2011.
29/09/12 Andy Sambidge/Arabian Business.com

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Trafficking: 14 Lankans deported

Fourteen Sri Lankan nationals held here in connection with the human trafficking case boarded the flight to Colombo from the Thiruvananthapuram International Airport on Saturday morning, as part of the deportation under the Foreigners Act.
Another Sri Lankan, included among those to be deported, could not board the flight owing to an issue over the passport. The Kollam District Collector had issued orders to deport 15 Sri Lankan nationals of Tamil origin.
All 15 were acquitted from the case as victims by the Kollam First Class Magistrate Court II on August 18.
Fourteen of them were lodged in Gandhi Bhavan, Pathanapuram, while a woman identified as Muthumala was staying in a private lodge.
She was out on bail after the court acquitted her and was not under the protection of the district administration. Sakthikulangara SI Rupesh Raj said that one of the Sri Lankans, identified as Kanakaselvam, could not travel back as he had not retrieved his passport, which was surrendered in the court.
30/09/12 New Indian Express/IBN Live

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CII signs MoU with ADS to help SMEs leverage opportunities in various sectors

To promote and explore opportunities for cooperation among the SMEs in the Aerospace, Defence, Security and Space, CII signed an MoU with ADS, in Cardiff,  Wales, UK.
 CII SME delegation led by Deep Kapuria, chairman, CII National MSME Council and Chairman, Hitech Gears Ltd  is participating at the India UK SME Business Meet (27 - 28 September 2012), in Cardiff, organised jointly by the Indian High Commission  (in London, UK)  and the  Welsh Government.
 Speaking at the occasion, Deep Kapuria, Chairman, CII National MSME Council and Chairman, Hitech Gears said that - ''Both ADS & CII will work together in establishing programmes in Aerospace, Defence, Security and Space, which will encourage greater sharing of expertise and experience between SMEs and developing linkages with relevant agencies tasked with supporting SMEs''.The MoU will enable us to upscale the Indian SMEs to the high global standards in the  four (4) sectors, and CII will work closely with both the Ministry of MSME and the National Small Industries Corporation (NSIC), (the two key stakeholders in the Indian SME space) in this direction, he added.
28/09/12 myiris.com

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120 passengers of Muscat-Kochi flight stranded

Muscat: About 120 passengers, including a pregnant woman and infants, were stranded at the Muscat International Airport on Saturday after an Air India Express aircraft developed a technical snag.
“We have had a technical glitch in the Airbus A320 aircraft and we are trying to rectify the problem so that the passengers could be flown Muscat-Kochi by tonight,” Amresh Choudhary, Air India Country Manager Oman, told Gulf News.
He explained that a mechanical part is being sent from India. Permission from the Oman Aviation Services is also required for the flight to depart, he said.
“The flight was to take off at 11.50am and all the passengers were checked in,” Raji Sahul, a stranded Air Indian Express passenger, told Gulf News.
29/09/12  Sunil K. Vaidya/Gulf News

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Protest march against Air India fare hike

“The present state government and the ministers in it are more interested in lining their pockets than finding solutions to people’s problems,” Opposition Leader V S Achuthanandan has said.
He was inaugurating the CPM protest meet against the recent cancellation of Air India flights to gulf sectors and hiking its fares.
“There are lakhs of expatriate Malayalees working in the gulf, and they bring in foreign currency worth crores of rupees. But the state government, more than solving their problems, is set to exploit them,” he added.
The protest march, taken out to the Air India office at the airport, was stopped at the airport gates by the police.
29/09/12 New Indian Express/IBN Live

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Protest held to reclaim airport from GMR

 A protest was held last at the Artificial Beach area calling to reclaim the Ibrahim Nasir International Airport (INIA) from GMR, India.
The protest held in the name "The Maldivians' airport to Maldivians" initiated by some political parties within the coalition government, was not participated by large numbers of people. Out of the pro-government parties, only leaders of Adhaalath Party (AP) had been seen during last night's protest, where President of AP Sheikh Imran Abdulla took part in the gathering.
All speakers during the gathering had basically called on to regain the airport from GMR and annul the agreement made with the Indian company.
28/09/12 Muizzu Ibrahim/Haveeru Online

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First Batch of Hajj Pilgrims Leaves from Mangalore Airport

Mangalore: The first Hajj flight carrying 220 pilgrims took off from Mangalore Airport at 11.30 am at Thursday September 28. There would be five trips till October 2 with a total of 1,035 pilgrims flying the Mecca, the sacred place of Muslims from Mangalore Airport
 S K Bellubbi, minister for Hajj and Wakf waved the flag to mark the formal departure of the pilgrims in the presence of Fazal Koyamma Tangal, assistant Qazi of Ullal. Twaka Ahmed Musliyar, Qazi of DK district led the prayers.Minister S K Bellubbi said that in all there are 6,800 Hajj pilgrims going from Karnataka. "Pilgrims would also be flying from Bangalore, Goa and Hyderbad," he added
28/09/12 Daijiworld.com

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Rs 20 lakh worth foreign brand cigarettes seized at IGI

New Delhi: Cigarettes worth nearly Rs 20 lakh have been seized by customs officials from five Afghan nationals at Indira Gandhi International (IGI) airport here.
The Customs officers on Thursday had intercepted five Afghan passengers Mohammad Nazir, Shukib, Zergai, Toryaji and Najibullah - coming from Kabul and recovered 984 packets (1,96,800 sticks) of 'Mond' brand cigarettes valued Rs 19.68 lakh which were being smuggled into India. "The goods have been seized under provisions of Customs Act, 1962," an official said.
28/09/12 PTI/Zee News

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Kingfisher Airlines in stake sale talks: Mallya

Bangalore: Vijay Mallya, chairman of the beleaguered Kingfisher Airlines (KFA), on Wednesday said he was in talks with foreign carriers for a possible stake sale, amid protests by some shareholders and edginess among bankers over steps to recover their dues.
Lenders are keeping close tabs on progress of FDI talks after the government allowed foreign airlines to buy up to 49% in Indian carriers. A section of lenders is pushing for a quicker decision on the issue, especially because they are losing money every quarter by setting aside funds for potential losses. The bank chief said that the airline had told them several months ago that it was in talks with a foreign carrier but there is little to show by way of movement on the issue.
"Suffice it to say that we are having conversations (with foreign carriers). As for how close we are (to concluding a deal), the policy on FDI in aviation was announced only ten days ago. You can go so fast and not faster," Mallya told reporters a day before a meeting with bankers.
27/09/12 Times of India

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AirAsia ready for India if all is well: CEO

Kuala Lumpur: Frills-free airline, AirAsia, will not hesitate to establish itself in India if the "aviation environment" and tax structure are "conducive and friendly" for low-cost airline operations.
Group Chief Executive Officer Tan Sri Tony Fernandes said though the Indian government has allowed 49 per cent foreign direct investments in the country's civil aviation sector, the cost of operating an airline there was still higher than many developed nations.
"This is the power of AirAsia. Everyone wants us but the right infrastructure and environment must be there for us to go there (India).
"The airport tax is already very high and I even heard that they are going to further increase the tax, forcing many airlines to quit from certain destinations.
"If everything is right, then we will be stupid not to enter the Indian market, which boasts more than a billion population," he told reporters after opening AirAsia's Badminton Academy here Wednesday.
27/09/12 Daily Express

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Maldivian airline to connect Chennai, Mumbai from November

Chennai: With growing passenger traffic between the Maldives and India, Maldivian, the national airlines of the Maldives will fly to Mumbai and between Chennai and Dhaka from November and connect New Delhi and Kolkata later, said a top official.
"We will be connecting Chennai-Dhaka and Mumbai from November onwards. We will look at flying between New Delhi and Kolkata later. We have landing rights in the four metros," Abdul Haris, managing director at Island Aviation Services Ltd told reporters here Wednesday.
 The $50 million-worth Island Aviation owns the Maldivian airline. Haris said the airline will soon add an aircraft to its fold to connect the new destinations. Already, Maldivian connects Male and Thiruvananthapuram in Kerala.
27/09/12 IANS/The Pioneer

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Cochin airport’s MRO facility gets European certification

Kochi: The aircraft Maintenance, Repair and Overhaul (MRO) unit of Cochin international airport Cochin International Aviation Services Limited ( CIASL), has obtained the certification of the European Aviation Safety Agency (EASA) for the line maintenance of aircrafts.
CIASL, a subsidiary of the Cochin International Airport Limited (CIAL), has already got approval from other agencies like the Civil Aviation Authorities of the UAE, Qatar, Singapore and Sri Lanka apart from the Director General of Civil Aviation (DGCA).
With the EASA clearance, CIASL will have permission to carry out the maintenance work of aircrafts of most of the airlines across the globe, a spokesman for CIAL said here on Tuesday.
26/09/12 T Ramavarman/Times of India

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Kingfisher in talks with foreign airlines: Mallya

Bangalore: Following the government's move to allow FDI in the civil aviation sector, Chairman of debt-ridden Kingfisher Airlines Vijay Mallya today said the carrier was in talks with foreign airlines.
"Yes, we are in talks" he said on the sidelines of the annual general meeting of the UB Group, promoted by him.
However, he did not provide details citing "privacy and confidentiality" reasons.
When asked how beneficial the new FDI policy will be for Kingfisher, Mallya said it was too early to comment.
Mallya also informed that his airline will be making a presentation to the SBI-led consortium of banks that have lend to Kingfisher.
"We have regular meetings with the KFA banking consortium. I can confirm that there is meeting tomorrow. We will make a presentation to them as requested," he said.
Banks together have an exposure of nearly Rs 7,000 crore in the airline and the loans have all become non-performing assets since January.
26/07/12 PTI/Business Standard

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FDI in aviation: IndiGo says no plan to take foreign partner on-board

Mumbai: Contrary to its peers, who are upbeat about 49% foreign direct investment in Indian carriers, budget airline IndiGo on Tuesday said it has no plans to take on-board an overseas partner to expand its business.
"We are not looking at any investment.. so it does not matter to us. We are certainly not looking at investment by foreign airlines at this point of time," IndiGo President Aditya Ghosh told reporters at the sidelines of an All-India Management Association summit here.
The Gurgaon-based carrier, run by InterGlobe Enterprises, is the market leader with 27.6% market share as of August, unseating the long-time market leader Jet Airways Group - which also runs a budget service, Jet Konnect - that enjoyed a combined pie of 25.2% during the same period.
Ruling out any downward revision in fares following the two full service carriers - Air India and Jet Airways - announcing special promotional rates during the upcoming festival season to woo passengers, Ghosh said his no-frills airline's fares are always low.
25/09/12 PTI/Daily News & Analysis

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FDI in aviation: Should foreign investors jet in?

It is exactly ten days since prime minister Dr Manmohan Singh made the bold announcement permitting 49% foreign direct investment (FDI) in aviation apart from FDI entry into multi-brand retail. Plus a host of other far reaching decisions that would revive the investors’ confidence everywhere.
 For several months now, Air India has been in the news for a variety of wrong reasons, not exactly pleasant to repeat here. The biggest financial boost from the government has not been able to revive it to its former glory though the Dreamliner has landed for it in India.
 Kingfisher in the south, spearheaded by Dr Vijay Mallya has been in doldrums as well, heavily overburdened and under financial strain. It may be recalled that Capt Gopinath’s
Air Deccan, really the people's airline, was gobbled up by Kingfisher, couple of years ago.
25/09/12 moneylife.com

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CIASL gets global recognition

Scaling one more step in the field of aviation the Cochin International Aviation Services Limited, the subsidiary of the Cochin International Airport Limited, has bagged the approval from one of world’s highly reputed authorities in aviation safety technology, the European Aviation Safety Agency.
It was announced in the press release published by airport director A C K Nair on Tuesday.  This will add more sheen to CIASL, which has already won recognitions from major airline repair and safety agencies of worldwide reputation.
Directorate General of the Civil Aviation, General Civil Aviation Authority, UAE, SriLankan Civil Aviation Authority, Singapore Civil Aviation Authority and Qatar Civil Aviation Authority are the major agencies who had bestowed their faith in the repair services of the CIASL. It is a great recognition for CIAL and its subsidiary CIASL, because, according to the press release, with the approval of the European Aviation Safety Agency, CIASL is getting the licence to repair the aircraft of almost all major airlines of the world.
26/09/12 New Indian Express/IBN Live

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Air India Dreamliner's in-flight entertainment system a 'game changer'

California: Air India's new Boeing 787 Dreamliner have got a game changing in-flight entertainment (IFE) system from French technology firm Thales.
Thales has provided its state-of-the-art in-flight entertainment system i-8000 to Air India's fleet of 787s.
The system has a host of interactive capabilities through an easy navigation user interface, including full audio and video on-demand (AVOD), games, shopping catalogues and a new interactive ASXi moving map application.
"In-flight entertainment systems can have a direct and lasting impact on customer perception of the service excellence of an airline," Alan Pellegrini, chief executive, Thales In-flight entertainment business said.
26/09/12 Business Today

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Kingfisher Airlines' lessors pay Airports Authority of India directly to fly planes out of India

New Delhi: Foreign aircraft leasing companies wishing to repossess their planes from near bankrupt Kingfisher are paying Airports Authority of India (AAI) about a crore for flying each plane out of India. Kingfisher owes about Rs 290 crore to the state-run AAI and the latter told the airline it would not allow any lessor to repossess aircraft from it — due to non-payment of lease rentals — to leave India unless the dues are cleared.
"About two months back, Kingfisher paid us about Rs 1 crore or 2 crore so that a lessor could take their aircraft back. Later the airline could not even pay that much to allow lessors to take planes out of India. Now lessors are coming to us and paying money to do that. So far, three aircraft have been repossessed by lessors by paying us Rs 1 crore per plane. Kingfisher has not paid them and they are paying us so that the planes can be leased out to some other airline abroad," said a senior AAI official.
25/09/12 Saurabh Sinha/Times of India

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European fine on aviation draws flak

Since January 2012, aviation has been included in the European Union’s Emissions Trading Scheme (ETS) that requires aircraft operators to surrender one allowance per tonne of carbon-dioxide emitted on a flight to and from (and within) the EU. This covers passenger, cargo and non-commercial flights and applies no matter where an aircraft operator is based.
Each such airline would have to comply with a benchmark set by the EU on the basis of its average annual emissions in respect of flights to and from the EU. One of the most controversial aspects of the measure is that it calculates an airline’s emissions from the point of take off; this means that a flight from New Delhi to London, which flies within the EU only for a few hours, would have to account to the EU for its emissions from New Delhi itself. EU’s rationale in putting in place the system is to ensure that its own operators are not at a competitive disadvantage.
25/09/12 Anuradha R V/Deccan Herald

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Two UAE nationals to face animal smuggling charges in India next week

Dubai: Two UAE nationals arrested last week in India for smuggling an endangered primate have been released on bail on the condition they do not leave the country.
Next week the pair will appear in front of two different courts in New Delhi, the Indian capital. The 17-year-old is expected to appear in front of the Juvenile Justice Board on September 25, while his cousin, who is 30, is to have his case heard at the Tis Hazari district court two days later.
“The condition is that they will not leave India without the permission of the respective court,” said an official at India’s Wildlife Crime Control Bureau, which has charged the men with possession of an endangered species.
The men were arrested by the Central Industrial Security Force (CISF) in New Delhi’s international airport when they were trying to board a flight to Dubai.
They were transferring in India on a Jet Airways flight from Bangkok when officials discovered a rare species of loris hidden in the undergarments of one of the men. A second animal was discovered later in a bin at the airport.
18/09/12 Vesela Todorova and Ramola Talwar Badam/The National

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Mahindra opens their first Technical Centre America

A state of the art Mahindra Technical Center was inaugurated on Wednesday at Troy, Michigan in North America. This will be the first such Mahindra technical centre in US and will employ a total of 25 engineers which will be increased twofold in the future. The Centre will serve as a base for Mahindra in the US to tackle engineering demands be it for their automotive and farm engineering segments. Through the facilities at this centre, M&M will be able to offer 24x7 engineering services to their customers.
Troy Centre will be scaled up in due course with a special recruiting department set up in the US. Mahindra Group have a sizeable presence in North America where information technology, tractors and aerospace is concerned. They sell tractors through Mahindra USA while IT is managed by Satyam, Tech Mahindra and Bristlecone and GrippAERO manufactures aircrafts for Mahindra Aerospace.
24/09/12 RushLane

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African caught with Rs2 crore drugs

Mumbai: A 40-year-old African woman was caught carrying drugs worth over Rs2 crore by custom officials at the Mumbai airport on Monday. She hid the drugs in a bag containing stale fish and beef.
Liasu Lara Okine, a native of Benin, was caught by a team of air intelligence unit of the airport customs headed by assistant commissioner of customs, Sameer Wankhede. She was caught with 1.3 kg of cocaine, 2.1 kg of ketamine and 100 gm of methamphetamine. Customs officials have sent the samples for forensic test.
25/09/12 Preety Acharya/Daily News & Analysis

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Man pleads not guilty to bribing Air India officials to win technology contract

Ottawa: A man accused of bribing an Indian government official pleaded not guilty to the charges Monday, kicking off a trial that pushes those involved into largely uncharted legal waters.
Nazir Karigar, 65, was charged with one count of corruption after the Royal Canadian Mounted Police arrested him in May 2010.
The Crown accuses him of being involved in a scheme to provide bribes worth thousands of dollars to officials with commercial airline Air India from 2005 to 2007.
He was allegedly involved in trying to secure a multi-million dollar contract for Cryptometrics, a company that developed facial-recognition technology that allows security officials to identify people by taking images of their face.
Part of the testimony during the trial’s first day centred on whether Air India employees fall into the category of a “foreign public official.” Section 2 of the Act includes any corporation that performs “a duty or function on behalf of a foreign state.”
Air India is a corporation owned by the Indian government. The court heard from the man responsible for the airline in Canada that he did not receive a pension from the Indian government, but other officials with the airline did.
24/09/12 Mark Brownlee/Ottawa Citizen

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Amritsar-Toronto AI service to remain suspended till March

Amritsar: The wait of those hoping for the resumption of Amritsar-Delhi-Toronto flight from Sri Guru Ramdas Jee International Airport, Rajansani, Amritsar, will get longer with the Air India deciding to continue with the suspension of the service in winter, as well.
The flight, suspended a few months ago till October, will continue to be suspended till March 2013, sources said, adding that a communication to the effect was sent to Air India authorities in Amritsar.
Crying foul over the suspension of the flight, BJP leader and Amritsar Member of Parliament Navjot Singh Sidhu has been pressing hard for the resumption of the flight, while underlining that the flight had a tremendous potential in terms of occupancy and profitability.
24/09/12 Navjeevan Gopal/Indian Express

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Protest against cancellation of AI flights

Air India’s (AI) action of frequently cancelling its international flights from Kerala has evoked strong protests in the State, cutting across political affiliations.
Chief Minister Oommen Chandy, in a statement here on Saturday, protested against the frequent cancellation of Air India flights from the State. The steep hike in air fares to the Gulf along with the cancellation of flights had doubled the miseries faced by Gulf-bound passengers.
He wanted Prime Minister Manmohan Singh to intervene urgently and make alternative arrangements. He said Kerala had raised these issues several times. He had once again brought the matter to the Prime Minister’s notice in the memorandum submitted when Dr. Singh was in Kochi for the Emerging Kerala event, he said.
23/09/12 The Hindu

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Air Asia CEO to visit India

New Delhi: The government’s decision to allow 49 per cent foreign direct investment (FDI) in civil aviation seems to have rekindled interest among foreign carriers in the country’s aviation sector. A few days after the government made the crucial policy announcement, Tony Fernandes, chief executive officer of Air Asia, the largest low-cost carrier in Southeast Asia, said he would visit India this month.
“Will be in India at the end of the month and will try to meet all of the press,” Fernandes said in his response to an email query.
Shortly after the Union Cabinet approved FDI in civil aviation and multi-brand retail on September 14, he had tweeted: “Fantastic news that India has opened up investment to foreign airlines. With Malaysia opening up this is fantastic news for airlines like Air Asia. Great that Indian government has put people first.”
However, according to news agency Reuters, Fernandes, while addressing the Singapore press, said he had no immediate plans to enter the market because he thought the aviation fuel tax and airport charges were still too high.
24/09/12 Disha Kanwar/Business Standard

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Filipino woman gets 10 years in jail in Delhi

A 44-year-old Filipino woman, who arrested at the Indira Gandhi International (IGI) Airport in 2006 with two kg of heroin, has been sentenced to 10 years imprisonment by a Delhi court.
Additional Sessions Judge (ASJ) MK Nagpal read out a sentence of 10 years rigorous imprisonment to Ma Sol Baillo, a resident of Manduriao in Philippines, apart from slapping a Rs1 lakh fine on her, after the court held her guilty under various sections of the Narcotic Drugs and Psychotropic Substances Act, 1985.
The court awarded the woman the minimum sentence, bearing in mind the woman's family situation -- she has three children, and her youngest child was born with a hole in his heart.
23/09/12 IANS/Daily News & Analysis

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Man arrested with 8 kg gold

Jaipur: One person was arrested allegedly carrying 8 kg of gold by customs officials at the Sanganer airport here, sources said today.
Manoj Sharma hailing from Sikar district arrived in a Dubai-Jaipur flight yesterday.
He was carrying gold biscuits and jewellery in his baggage which was detected during checking. He had not declared that he was travelling with 8 kg gold.
24/09/12 PTI/Business Standard

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Boost for Air Kerala as Ajit plans norm relax

Thiruvananthapuram/Kochi: Kerala’s ambitious Air Kerala proposal has got a boost with civil aviation ministry mooting relaxations in criteria of five years’ experience and a 20-aircraft fleet for Indian carriers to fly overseas.
Reacting to reports on civil aviation minister Ajit Singh’s plans to approach the Cabinet seeking the norms waiver, chief minister Oommen Chandy told Deccan Chronicle on Saturday that the government was awaiting an updated detailed project report by Ernst & Young on Air Kerala.
“I welcome Mr Ajit Singh’s stance and I’m the happiest because he agrees with our reasoning on waiving the Central guidelines”, said Mr Chandy.
Mr Ajit Singh’s priority included connectivity to Tier II and other non-metro cities but Mr Chandy said he would try and convince him of the need to accord top priority for the Kerala-backed airline in the Gulf sector.
Reportedly, Prime Minister Manmohan Singh, recently at the Emerging Kerala meet, had quipped that Kerala’s demand for the waiver was “genuine”.
23/09/12 John Mary/Vinod Nedumudy/Deccan Chronicle

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Air Kerala gets a shot in the arm

The ambitious Air Kerala project received a shot in the arm with Civil Aviation Minister Ajit Singh hinting that the government will relax the minimum requirements for Indian carriers to fly overseas.
Under the prevailing rules, Indian carriers must have 20 aircraft and five years of experience, which was considered a major barrier to realise the Air Kerala project.
Cochin International Airport Limited (CIAL) Managing Director V J Kurian said the Minister’s statement is a giant leap for the state.
“The Union Minister’s statement is a major step in the realisation of the Air Kerala project. As part of the feasibility study, the profitability of the airline and the routes would be examined.
During the ‘Emerging Kerala’ event, our main request to the Prime Minister was relaxation in guidelines of the aviation sector to Air Kerala.
“I believe the recent statement came as a result of the effective lobbying from the state. The number of flights in the initial stage will be finalised after the publication of the revised guidelines,” he said.
23/09/12 Pramod Thomas/New Indian Express/IBN Live

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Passengers stranded after flights cancelled

Thiruvananthapuram: A week after India opened up its aviation sector to international competition, hundreds of expatriate passengers were stranded in southern India yesterday as Air India cancelled several flights on the Gulf sector.
Air India officials said the services from three airports in Kerala and in Mangalore, Karnataka had to be cancelled to fly Haj pilgrims from other parts of the country and added the stranded passengers were being accommodated on other flights.
The frequent cancellations and delays of Air India flights have sparked widespread protests in Kerala.
The Sharjah-bound passengers of Air India Express who reached the international airport here early yesterday said they were not informed about the cancellation of the flight.
Many of them said they could lose their job if they failed to report in time.
“I came all the way from Chengannur to catch the flight, only to be informed that it has been cancelled. I had checked with them the previous night on phone before finalising my travel plans,” said one of the passengers. “They could have at least sent an SMS alert on the status of my flight,” a passenger said.
Air India Express officials later made arrangements for 40 passengers to board the evening flight to Sharjah. But many are still stranded and the problem is expected to continue at least for a month until the end of the pilgrimage season.
23/09/12 Ashraf Padanna/Gulf Times

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Foreign airlines on 'wait-and-watch' mode on aviation FDI

New Delhi: Major foreign airlines seem to have adopted a wait-and-watch approach over the government's decision to allow them to pick up 49% stake in Indian carriers, even though the government says the mood in the industry was upbeat.
Air India has been kept out of the ambit of this major policy announcement, but there have been reports about a couple of Indian carriers holding preliminary discussions with foreign airlines to attract investment.
A day after notifying the FDI rules, Civil Aviation Minister Ajit Singh said the aviation sector was passing through a difficult phase due to the economic slowdown, but "the mood is upbeat after the government has allowed 49% FDI in domestic airlines".
However, barring Abu Dhabi-based Etihad Airways, many of the major foreign airlines have said they currently do not have plans to invest in Indian carriers.
23/09/12 PTI/Daily News & Analysis

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Air Asia CEO Tony Fernandes to visit India this month

New Delhi: Tony Fernandes, Chief Executive Officer (CEO) of Air Asia, largest low cost carrier in South East Asia, is expected to visit India by the end of this month; just weeks after 49 per cent Foreign Direct Investment (FDI) approval in aviation sector.
In an email reply, Fernandes said, “Will be in India at the end of the month and will try to meet all of the press.”
Notably, shortly after cabinet approved FDI, he tweeted, “Fantastic news that India has opened up investment to foreign airlines. With Malaysia opening up this is fantastic news for airlines like Air Asia. Great that Indian government has put people first.”
However, according to Reuters, Fernandes, while addressing Singapore press, said he had no immediate plans to enter the market because he thought the aviation fuel tax and airport charges were still too high.
This time, Fernandes seems to be taking cautious moves after fizzing out of all excitement shown by Air Asia when they entered the Indian market in 2010. Seldom had any airline expanded at such a speed then.
23/09/12 Disha Kanwar/Business Standard

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Dreams taking wings

Going to Dubai? How about taking a direct flight from Bhubaneswar! This can be a reality as early as March-April next year if Biju Patnaik airport authorities are to be believed. Domestic air travel to and from the city is also going to be a whole new experience in another three months, they say.
While decks are being cleared for elevation of the Biju Patnaik airport to international status, Fly Dubai airlines has already expressed interest to link the temple city with Dubai. Union civil aviation minister Ajit Singh on Thursday assured chief minister Naveen Patnaik in New Delhi of starting international flights from the city soon. Singh also told Naveen that his ministry would advise Air India and other domestic airlines to start international operations from Bhubaneswar.
"By December, the domestic terminal will be shifted to the upcoming state-of-the-art building while the existing terminal will be used for international flights. All necessary clearances are in place. The runways are already fit for landing and taking off of international flights," Biju Patnaik airport director Sharad Kumar told TOI on Saturday.
23/09/12 Times of India

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Philippines-based woman sent to jail for possessing contraband

New Delhi: A Filipino woman, arrested at the Indira Gandhi International (IGI) Airport in 2006 with two kgs of heroin in her possession, has been sentenced to ten years in jail by a Delhi court.
Additional Sessions Judge (ASJ) MK Nagpal also imposed a fine of Rs one lakh on 44-year-old Ma Sol Baillo, a resident of Manduriao in Philippines, holding her guilty under various sections of Narcotic Drugs and Psychotropic Substances Act.
"Keeping in view the age, family background and all other attending circumstances, the convict (Baillo) is being awarded the minimum sentence of rigorous imprisonment for a period of 10 years each...," the court said.
Baillo was arrested on June 13, 2006 by the Directorate of Revenue Intelligence (DRI) on a tip-off that she was to travel to Bangkok with a suitcase containing the contraband.
23/09/12 PTI/ZeeNews

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'Air India showing Callous Attitude to Kerala'

Thiruvananthapuram: Kerala Minister for Non-Resident Keralite Affairs, K.C. Joseph Saturday went hammer and tongs against "the callous attitude" of Air India in regularly cancelling its flights to the Middle East.
"We have made numerous representations to all concerned to end this callous attitude towards Kerala, but there seems to be no respite," Joseph told reporters here.
"We have already expressed our displeasure and will take up this issue with the central government," said Joseph.
It was chaos at the international airport here Saturday morning following the cancellation of the Sharjah flight, that was scheduled to depart at 8.45 a.m.Though Air India officials say they had intimated the passengers Friday night, the passengers complained about not being informed.
22/09/12 IANS/Daijiworld.com

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No need to worry on FDI: Shourie

FDI in retail and aviation will neither hurt people more nor benefit companies much, former Union minister Arun Shourie today said.
"There will be neither more profit nor much loss with the FDI in retail and in aviation. It is not of much use to either side (businessmen and consumers)," he said on the sidelines of a global conference here.
He said five or six years back, major companies like Reliance, Airtel and Big Bazaar had come in retail but it did not affect small retailers.
"The FDI in aviation will help three to four companies at the most. The process of consolidation which is in telecom sector, the same will be in aviation. At the most, it may be little faster in aviation," the former telecommunications minister in the NDA government said.
22/09/12 PTI/Business Standard

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Fuel Tax, airport charges keep Air Asia away from India

A plan to buy 100 Airbus aircraft will be submitted to the board of Asia’s largest budget carrier, AirAsia , in about two weeks, the airline’s CEO, Tony Fernandes, said on Friday, in a deal that could be worth $9 billion. He also said he had no immediate plans to enter the Indian market because he thought the aviation fuel tax and airport charges were still too high.
Reuters reported earlier this month that AirAsia was putting the final touches on the deal, ending a flirtation with Canada’s Bombardier. Fernandes said the order will involve a mix of aircraft and not just Airbus A320s.
“I’ll be submitting it to the board in two weeks,” Fernandes told Singapore’s Foreign Correspondents Association.AirAsia, with an operating fleet of more than 100 aircraft, has ordered a total of 375 Airbus jets as part of dramatic expansion plans that now include the acquisition of Indonesia’s Batavia Air. It has said it will accelerate deliveries as rising demand helps it offset high fuel costs.
22/09/12 First Post.com

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Airlines will get to fly abroad sooner

Mumbai: After allowing foreign airlines to invest up to 49% in domestic carriers, the government is now considering a plan to relax the minimum requirements for Indian carriers to fly overseas.
Till now, the domestic airlines were required to have 20 aircraft and five years of flying experience in the domestic regions. Civil Aviation Minister Ajit Singh told reporters in New Delhi on Friday that a plan is being considered to relax these norms.
According to analysts, none of the existing airlines will really benefit even if the norms are eased as most of the airlines have already completed five years in the domestic market. However, new players are set to benefit.
GoAir, which currently does not have 20 aircraft has applied for a waiver to be authorised to operate flights internationally.
22/09/12 Yuga Chaudhari/Daily News & Analysis

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Singapore Airlines unveils Silverkris lounge at IGI

Singapore Airlines (SIA), which has 13 SilverKris lounges worldwide, has opened its newest outlet in India.
The airline launched its newest 'oasis of luxury' for premium customers travelling out of the Terminal 3 at Delhi’s Indira Gandhi International Airport.
The lounge is designed to be a welcoming haven for the airlines’ first and business class passengers as well as PPS Club, KrisFlyer Elite Gold and Star Alliance Gold members. The airline has invested 20 million Singapore dollar in its premium lounges.
“We chose Delhi as it is one of our busiest markets in India, with two flights a day to Singapore... by offering customers an inviting space to relax in comfort, we hope to enhance their travel experience even before they board their flight,” said Tan Pee Teck, the airline's senior vice president (product and services).
22/09/12 Purabi Bora/Indian Express

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FDI in aviation must be backed with reforms in the sector

New Delhi: Thanks to the government's decision to allow foreign airlines to acquire up to 49% stake in domestic airliners, the possibility of Indian passengers flying in a Lufthansa or Etihad on Mumbai-Delhi route has become realistic. Yet it may not materialise on the ground due to structural issues that have marred Indian civil aviation sector for long. Unless that’s sorted out, systemic issues may continue to plague the sector in the short-to-medium term.
The government’s move is expected to bring strategic investors into the sector (earlier restricted to non-airline investors) at a time when most domestic carriers are in dire need of capital to reduce accumulated losses and mounting debt levels. Isn’t it a bit naive to think that foreign airlines will buy stakes in loss-making domestic carriers at a premium, factoring in high fuel and operational costs?
21/09/12 Rohit Joshi & Ajay Vaishnav/Daily News & Analysis

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Hundreds stranded in Kerala as Air India slashes flights

Thiruvananthapuram: Hundreds of non-resident Keralites bound for the Gulf and other countries were stranded in different parts of the state as the national carrier Air India slashed a large number of flights from the state. Early reports put the number of cancelled flights at 168. The reason given by authorities is that several aircraft had been shifted to Uttar Pradesh for the benefit of Haj pilgrims from the northern Indian state.
Many of the passengers who were scheduled to take early morning flights today (Saturday), got a rude shock around 3am when it was notified that the Air India Express flight from here to Sharjah had been cancelled. Dozens of passengers who had arrived from different parts of the state, including many with infants, complained to the airline officials, who said they were helpless because aircraft were being diverted to UP.
22/09/12 Akhel Mathew/Gulf News

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Ajit Singh clears air over the faux pas by commerce ministry

Mumbai/New Delhi: Civil aviation minister Ajit Singh on Friday said the sectoral cap for foreign investment in domestic airlines remains unchanged at 49%. Singh cleared the air following confusion created by a commerce ministry press note which suggested that sectoral cap was revised to allow foreign investment over 49%.
Last Friday, the Centre revised rules allowing foreign airlines to invest in domestic airlines. A formal notification was issued on Thursday. The notification said that 49% cap will subsume FDI (foreign airlines)  and foreign institutional investment (FIIs) in the airlines.
However, on Friday the commerce ministry while responding to media queries on the issue said FDI and FII will not be subsumed.
The commerce ministry's clarification suggested that the foreign airlines could invest upto 49% in paid up capital of the airline irrespective of the existing or future foreign institutional investment.
21/09/12 Disha Kanwar/Business Standard

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Dubai man held by customs with Rs4 lakh in diamonds in Ahmedabad

Ahmedabad: A 30-year-old man was nabbed by the Customs for trying to smuggle 16 packets of synthetic diamond crystals valued at around Rs4.40 lakh. The man identified as one Rajkumar Virendrakumar had landed at the Sardar Vallabhbhai International Airport at around 5.30 am on an Air Arabia flight (G9-481) from Sharjah.
A Customs official said that the officers on duty found something suspicious about the man and so screened his baggage. “The screening showed some black spots and on checking his baggage we found 16 packets of synthetic diamond crystals from him.
The packets were wrapped in black polythene so that it could escape detection,” said the official. Customs officials have booked the youth for evasion of duty.
22/09/12 Daily News & Analysis

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Don’t deal with Ravi Rishi’s chopper firm, warns MHA

After the Delhi High Court stayed the decision of the Director General of Civil Aviation (DGCA) to suspend the flying permit of Tatra scam accused Ravi Rishi’s Global Vectra Helicorp, the Ministry of Home Affairs (MHA) has issued a general instruction against “anyone entering into fresh contract with the firm” citing intelligence inputs.
Global Vectra Helicorp provides helicopter services to various tourist destinations and is hired by VVIPs, state governments and also services the oil and gas exploration as well as the production sector in India.
Though the DGCA has gone into an appeal against the stay order, the Vectra group resumed its operations in June this year.
The DGCA had suspended Global Vectra’s permit on May 7 this year on the recommendations of the MHA after it raised security concerns about the firm. The government also withdrew security clearance of Rishi who is facing allegations of irregularities in the supply of Tatra trucks to the Army.
22/09/12 Indian Express

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Their Dubai dream crashes at Ahmedabad airport

Ahmedabad: They had packed all the excitement and donned their travel shoes to take their first ever foreign tour to Dubai. However, dreams of this group of 42 senior citizens crashed when they reached Ahmedabad international airport on Thursday night. The airlines officials told them there are no bookings in their names.
The senior citizens, most of whom were carrying a list of places they will see in Dubai and items they will shop, got in arguments with the travel agent accompanying them at the airport but gave up soon and returned back home.
The group had members of a senior citizens' club in Maninagar which had booked their four-day Dubai tour two months ago through city-based Gopi Krishna travels for Rs 33,525 per person. The promoter of the travel agency, Natwarlal Mistry had hired services of an airline ticketing company Passworld Travels to do a group booking for September 20 in FlyDubai. Mistry paid the ticketing company 25 per cent of the total fare a month back but failed to pay the rest amount.
22/09/12 Times of India

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Govt to relax min requirements for carriers to fly overseas

The government will relax the minimum requirements for Indian carriers to fly overseas, Civil Aviation Minister Ajit Singh said on Friday.
The new rules will relax current norms of a minimum requirement of 20 aircraft and five years of experience for airlines, Singh said.
21/09/12 Reuters/Moneycontrol.com

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No immediate plans to enter India, says AirAsia

Singapore: A plan to buy 100 Airbus aircraft will be submitted to the board of Asia's largest budget carrier, AirAsia Bhd, in about two weeks, the airline's CEO, Tony Fernandes, said on Friday, in a deal that could be worth $9 billion. He also said he had no immediate plans to enter the Indian market because he thought the aviation fuel tax and airport charges were still too high.
Reuters reported earlier this month that AirAsia was putting the final touches on the deal, ending a flirtation with Canada's Bombardier. Fernandes said the order will involve a mix of aircraft and not just Airbus A320s.
"I'll be submitting it to the board in two weeks," Fernandes told Singapore's Foreign Correspondents Association.
AirAsia, with an operating fleet of more than 100 aircraft, has ordered a total of 375 Airbus jets as part of dramatic expansion plans that now include the acquisition of Indonesia's Batavia Air. It has said it will accelerate deliveries as rising demand helps it offset high fuel costs.
21/09/12 Reuters/Business Standard

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SpiceJet, GoAir better placed for FDI: KPMG

Low fare airlines SpiceJet  and GoAir with their good financial and operational performance are better placed for foreign direct investment (FDI) believes consulting firm KPMG which released a report on the sector today.
The firm has pointed out there will be lot of interest from global carriers in the Indian airlines  post the government allowing 49% FDI in the sector, which was a long pending demand by industry captains.
Explaining its rationale as to why international carriers would be keen on investing in Indian airlines, the firm gave instance like Emirates looking at a 52% increase in the number of weekly seats on the India sector, which could be a trigger for its investment in an airline that best suits its requirements.
Second, the report points out that Lufthansa has recently inked a strategic alliance with Jet Airways which allows both carriers to sell seats on each other's network.
21/09/12 Moneycontrol.com

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Govt notifies aviation FDI rules

New Delhi: Moving ahead with the reforms, the government on Thursday notified the Cabinet's decision to allow foreign airlines to pick up upto 49 per cent stake in private Indian carriers .
"The Government of India has reviewed the position in this regard and decided to permit foreign airlines also to invest in capital of Indian companies operating scheduled and non-scheduled air transport services up to the limit of 49 per cent of their paid up capital," the notification said.
This would now pave the way for much-needed equity infusion into Indian carriers which are in dire need of funds for operations.
20/09/12 PTI/Business Today

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Finally, Madurai gets international connectivity

Madurai:  The first commercial international flight from Madurai airport took off to Colombo on Thursday raising hopes of a tourism boom and increase in bilateral trade ties with the island nation.
The SpiceJet flight that took off to Colombo had 77 passengers, including 48 from the Tamil Nadu Chamber of Commerce and Industry (TNfrom Madurai who hope to tap the trade market opened up by the international connectivity to Colombo. In the return flight, 46 passengers arrived from Colombo.
"The airport is beautiful and I can compare very well on a par with the Bangalore airport or any other international airport for that matter," exclaimed Mohammed Hareesh, an export trader from Sri Lanka after landing in Madurai along with his wife Siddhi Nadeera by the Colombo - Madurai flight operated by SpiceJet on Thursday evening.
21/09/12 J Arockiaraj/Times of India

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Naveen pitches for air connectivity to West Asia

Kolkata/ Bhubaneswar: Chief Minister Naveen Patnaik has pitched for air connectivity between Bhubaneswar and West Asian as well as South-East Asian nations while reiterating his demand for declaring the Biju Patnaik airport in the city as an international airport.
The demand was raised by Patnaik during his meeting with Union minister for civil aviation Ajit Singh in New Delhi on Thursday.
Patnaik pointed out that Odisha still remained deprived of international operations despite attracting a rush of investment proposals across sectors. Total investments proposed in Odisha in calendar 2011 stood at Rs 3.21 lakh crore, the highest among all states.
He stressed upon the need to provide adequate infrastructural support to the aviation sector to ensure unhindered industrialisation and also keeping in view the growing inflow of domestic as well as international tourists.
21/09/12 Business Standard

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FDI not allowed in Air India: Ajit Singh

Air India is being exempted from the new Foreign Direct Investment (FDI) provision as the government has already given Rs. 300 billion to Air India, Aviation Minister Ajit Singh said while inaugurating the ASSOCHAM 5th international conference of Indian Civil Aviation here in New Delhi today.
``Aviation Turbine Fuel (ATF) to be got declared as notified product to bring transparency in its pricing and reduction of VAT on ATF by the states,`` according to Minister of Civil Aviation.
He further said ministry plans to establish a separate Aviation Security Force (ASF) to further strengthen security in all the 59 airports in the country. This force will replace the Central Industrial Security Force (CISF) to safeguard the airports.
He outlined that India needs lot of efforts and significant investment in the field of development of airport, improvement in connecting infrastructure and better air space management.
``Creation of Civil Aviation Authority to manage the phenomenal growth of air traffic with safety an effective, autonomous and professional regulatory body is required``. He also added that development of world class ANS infrastructure to manage the coming growth phased safely and efficiently, added Singh.
21/09/12 Myiris.com

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Centre cuts tax on foreign borrowings by Indian companies

New Delhi: Finance Minister P Chidambaram on Friday announced that the Centre had cut tax on external commercial borrowings (ECB) by Indian companies to five per cent from 20 per cent. The reduction in tax will encourage Indian companies to raise funds from overseas markets.
The withholding tax liabilities on Indian companies, too, have been reduced to five per cent. This will apply to all borrowings between July 2012 and June 2015.
Chidambaram also approved the Rajiv Gandhi Equity Schemes, tailor-made to encourage first time investors. The investors will get 50 per cent tax rebate on investment under the Rajiv Gandhi Equity Schemes. The maximum investment that can be made under the scheme is Rs 50,000.
21/09/12 CNN-IBN/IBN Live

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Diplomatic bag with Indian visa stickers stolen in London, MEA steps in

In a security breach, three Indian diplomatic bags containing 6,000 visa stickers have been stolen here during transit from the airport to the Indian High Commission.
It was on September 3 that the High Commission was informed of four Category 'B' diplomatic bags, including three bags that contained 6,000 visa stickers, having been stolen during transit from the Heathrow airport to India House in Aldwych, central London.
The fourth stolen bag contained stationery items, a High Commission spokesperson told PTI. "On that day, in total 27 bags were received. Out of which, 25 bags contained 50,000 visa stickers (2000 in each bag).
"The bags were being transported from Heathrow Airport by the clearing agent, who handles 'B and 'C' category diplomatic bags of the High Commission since last several years", the spokesperson said.
21/09/12 PTI/Daily News & Analysis

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Maldives may even annul GMR deal: President Waheed

Male: With GMR's USD 500 million Male airport project hanging in balance, Maldives President Mohamed Waheed Friday said he was discussing the issue with all stakeholders and is even open to the option of annulling the deal with the Indian firm.
GMR had won the airport contract during the government of Waheed's predecessor Mohamed Nasheed but the project has run into rough weather, particularly after a regime change in the country earlier this year.
The opposition during Nasheed's government had challenged the privatisation process and threatened to renationalise the airport should it come to power.
An opposition party also took to court the issue of USD 25 Airport Development Charge (ADC) to be charged by on outgoing passengers by GMR, as stipulated in the concession agreement.
21/09/12 PTI/ZeeNews

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Govt notifies rules for FDI in aviation, excludes Air India

Mumbai: The government on Thursday notified the rules allowing foreign airlines to invest into domestic airlines. However, the rules are not applicable to Air India making it clear that government will remain its owner.
Though 49% FDI was permitted foreign airlines were debarred from investing in Indian carrier, domestic airlines reeling from mounting debt and losses lobbied for a change in rules which was approved in the cabinet meeting last Friday.
Anticipating the the change domestic airlines including Jet Airways, Kingfisher and SpiceJet have held series of discussions with Gulf carriers seeking partnerships and investment.
Under the revised rules foreign airlines can invest but such investments will not  be through automatic route. The chairman and two-third of directors of the airline securing investment will have to be Indian citizens. Clearance from the home ministry and Foreign Investment Promotion Board will be required, he added.
20/09/12 Business Standard

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FDI in Aviation: Structural challenges to limit investments

India Ratings says that the government of India’s recent decision to allow the foreign direct investment (FDI) limit in aviation up to 49% is expected to improve the capital structure of airlines with viable business models. The possible equity infusion would not only deleverage the sector but also provide funds for long-term growth. However, structural challenges may limit the attractiveness for such foreign investors at least in the medium term.
In addition to equity infusion, stronger strategic and operational ties with foreign partners with stronger credit profile, may potentially improve the credit profile of domestic airlines. This may have a beneficial impact on the funding cost of this sector known for its high capital intensity.
While the long-term growth potential of the Indian market may draw interest from International Airlines, the continuing structural weakness and regulatory risks may increase the perceived risk in such tie-ups. Other key considerations of prospective JV partners would be the lack of majority equity control in addition to specific board constitution.
20/09/12 moneycontrol.com

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FDI can open up jobs in retail and aviation sectors: Experts

Bangalore: Irrespective of the political furore over entry of foreign direct investment (FDI) into the retail and aviation sectors, the impact on the organised job market is likely to be highly positive, say experts.
FDI will spur more investments, lead to expansion and mergers and acquisitions, and change ownership in retail and aviation. All this will ultimately create more jobs, they said.
Aditya Narayan Mishra, president - staffing, Randstad India, an HR services firm, said it is not possible to cite a precise figure for the number of jobs that FDI in these sectors will create. But hiring will happen at a faster pace, he said.
Randstad estimates that the consumer retail sector will add over 54,000 jobs this year, while aviation will give direct and indirect employment to 1.7 million people.
Kumar Rajagopalan, CEO, Retailers Association of India, said for every 250 sq ft of retail space that is added, one new job is created. “With FDI, the opportunities will be more,” said Mishra.
20/09/12 Priyanka Golikeri/Daily News & Analysis

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SpiceJet to ship in fuel from Singapore

New Delhi: Low-cost carrier SpiceJet is all set to become the first Indian airline to directly import aviation turbine fuel (ATF) or jet fuel. The airline will ship in consignments of ATF from Singapore to two south Indian ports and then send them by trucks to airports wherever logistically possible. The move comes as ATF prices for domestic flights are currently at an all time high and SpiceJet — which spends about Rs 200 crore a month as fuel expense — expects substantial saving through direct imports.
"We will know the exact savings after one or two cycles of ATF import. Before that I would not like to hazard a guess. The average sales tax levied by states on jet fuel is 24% and the maximum saving could be that percentage," SpiceJet CEO Neil Mills said, adding that the process would begin as soon as the airline gets one final clearance from the government. Initially, the airline wants to meet 25%-30% of its demand through import.
20/09/12 Saurabh Sinha/Times of India

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Air India might get third Boeing Dreamliner next week

South Carolina: Boeing Co plans to deliver the first Dreamliner 787 made in South Carolina next week, a jet equipped with an engine model that recently experienced failures and has drawn federal scrutiny.
The North Charleston-built jet, for Air India, is "ticketed" and certified by the Federal Aviation Administration, which means it is ready for delivery, a Boeing official said on Wednesday. Its General Electric Co GEnx engines also have undergone special inspection, the official said, after the failures raised concerns.
Air India started flying its first Dreamliner and took delivery of the second on Wednesday.
Delivery from the second Boeing plant to make Dreamliners marks an important milestone for a jet that has been beset by assembly problems that caused huge cost overruns and delays.
Carbon composites that replaced aluminum on the jet reduced its weight and cut fuel consumption 20 percent compared with other planes its size on similar routes - savings prized by airline customers eager to tame soaring fuel bills. But the delays have damaged Boeing's credibility with customers, making the first delivery from the second line all the more meaningful. The engine problems could have caused further delays.
20/09/12 Reuters/Business Standard

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SpiceJet looks at exotic foreign destinations

New Delhi: Young Indian low-cost carriers (LCC) are eager to spread their wings to territories left unchartered by their older full service counterparts. The country's second biggest LCC SpiceJet has sought government nod to fly to 10 new destinations, majority of which are in the former Soviet Union and China. These include places like former Kazakh capital Almaty, Uzbek capital Tashkent and Chinese special administered region (SAR) Macau.
The airline will launch flights to other Chinese SAR Hong Kong next month along with Guangzhou, according to airline CEO Neil Mills. It already flies to Kabul, along with tourism-cum-trade centres of Colombo, Dubai and Kathmandu. The airline will bring Male, Riyadh and Dhaka on its network soon.
20/09/12 Saurabh Sinha/Times of India

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Sitaram Yechury comes clean on FDI in aviation

New Delhi: The Communist Party of India-Marxist (CPM) leader and the chairman of the Parliamentary Standing Committee on Civil Aviation, Sitaram Yechury, has refuted the charge of Trinamool Congress (TMC) chief Mamata Banerjee that he gave the go-ahead for foreign direct investment (FDI) in the cash-strapped aviation sector.
Yechury told media here that as a former central cabinet minister, Banerjee, should have known that the standing committee did not have the mandate for taking such a decision
"As a union cabinet minister in both the BJP-led NDA regime and in the Congress-led UPA regime, the Trinamool chief should know that these are matters which are called executive decisions, that are entirely in the domain of the executive, i.e., the government. This matter was never referred to the committee.
20/09/12 ANI/Daily News & Analysis

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FDI in aviation: Etihad to invest in Jet Airways?

New Delhi: With the government having allowed foreign carriers to buy up to 49 percent stake in domestic airlines, India’s leading private airline, Jet Airways could be the first to receive investment from Etihad Airways.
According to reports, both the airlines have held several rounds of discussions, fuelling speculation of a possible alliance.
Last week, the Cabinet Committee on Economic Affairs approved the FDI in aviation proposal, a permit that would allow foreign airlines to buy up to 49 percent in domestic carriers and a move which would pave way for much-needed equity infusion into India's airlines passing through acute turbulence as most of them are in dire need of funds for operations.
19/09/12 Zee News

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Can Jet, already 80% owned from Isle of Man, seek FDI?

New Delhi: Is Jet Airways really qualified to invite equity participation from Etihad, or any other foreign carrier, for that matter, given its current shareholding structure?
The BS story clarifies that though Goyal himself is a non-resident Indian (NRI), Jet is an Indian company and is, therefore, entitled to seek a strategic foreign partner. It is widely known that Goyal holds an overwhelming 80 percent equity in the airline through a company called Tail Winds, which is registered in the Isle of Man.
So, in effect, Jet is already 80 percent owned through a vehicle abroad. Till the new norms removing the cap on foreign companies buying into Indian carriers get notified, Jet continues to operate in violation of the current FDI guidelines which cap investment by foreign institutions (excluding airlines) at 49 percent.
19/09/12 First Post.com

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SIA renews interest in Indian aviation sector

New Delhi: Close on the heels of the government’s policy announcement to allow foreign airlines to buy up to 49 per cent stake in Indian carriers, Singapore International Airlines (SIA) has said it is keen on investing in the domestic aviation market.
In response to an email reply to a questionnaire sent to the airline, SIA has said: “We keep all investment options open, but at this point there are no discussions taking place on the purchase of a stake in an Indian airline.”
SIA, along with the Tata Group, had earlier made attempts to enter the Indian aviation market. In the mid-nineties, SIA’s proposal, in partnership with the Tatas, was scuttled in the wake of objection from the civil aviation ministry, following which the Tatas decided to go it alone, but with a technical alliance with SIA.
19/09/12 Mihir Mishra/Indian Express

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US engine concerns could botch AI plans

Bangalore: The National Transportation Safety Board (NTSB), the independent safety investigator of the US, has issued two urgent safety recommendations on General Electric GEnx engines, which power the latest generation of Boeing aircraft: Both the 787 Dreamliners and the Boeing 747-8s.
The GEnx-1B engines power the 787 Dreamliners that are the newest addition to Air India’s fleet. Among other users of the engine are Japan Airlines (JAL) and Ethiopian Airlines, with Qatar Airways set to join soon. The two other 787 operators, All Nippon Airways (ANA) and LAN Chile, have their aircraft powered by the Rolls Royce Trent 1000 engines.
The Dreamliner’s first commercial flight is scheduled to be on September 19. The GEnx-2B engines power the Boeing 747-8i of Lufthansa and the 747-8F freighters of many carriers.
The investigation of the GEnx engines began with the July 28 engine failure incident at Charleston, US, involving a Boeing 787 Dreamliner destined for Air India. Initial investigations had suggested a fracture failure of the fan midshaft (FMS). While that investigation is on-going, on August 31, NTSB had found similar signs in another GEnx-1B fitted on a yet-to-fly Boeing 787. The fan midshaft was removed from that engine for further inspection and examination.
18/09/12 Praveen Bose/Business Standard

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AirAsia may be first to enter India

New Delhi: Asia's largest low-cost carrier (LCC) AirAsia may be among the first global players to invest in India with the government allowing foreign airlines to invest in Indian carriers. It is learnt that instead of investing in an existing carrier, the Malaysian LCC is looking at the possibility of a start-up with a strong Indian partner.
AirAsia chief Tony Fernandes said in an email to TOI: "We will make statements in due course." Last Friday, after Cabinet's decision to allow foreign airlines to have up to 49% stake in an Indian carrier, Fernandes had tweeted: "Fantastic news that India has opened up investment to foreign airlines... Great that Indian government has put people first. Will we be in India. Well, let's see."
AirAsia currently flies between Kuala Lumpur and five Indian cities - Kochi, Trichy, Chennai, Kolkata and Bangalore. Additionally it also connects Bangkok with Chennai and Kolkata. The LCC had pulled out of Delhi and Mumbai in March due to high airport charges.
19/09/12 Saurabh Sinha/Times of India

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Air India’s second Dreamliner to arrive in Delhi this evening

New Delhi: The second of the 27 Boeing 787 aircraft ordered by Air India arrives in India later this evening. The second aircraft is expected to touch down in Delhi around 5 p.m.
The B 787 aircraft, more popularly known as the Dreamliner, will be used on services from Delhi to Kolkata and possibly either Dubai or Kathmandu.
Meanwhile, the first of the airline's Boeing 787 started commercial flying for Air India. The first flight was operated as the morning flight on the Delhi-Chennai-Chennai sector.
19/09/12 Ashwini Phadnis/Business Line

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GMR leadership to visit Maldives as government parties escalate nationalisation rhetoric

Board members and the head of Indian infrastructure giant GMR, G M Rao, are due to visit the Maldives later this week in a bid to resolve tensions with the government over the company’s development of Ibrahim Nasir International Airport (INIA).
The upcoming visit follows a meeting between Rao and former President Maumoon Abdul Gayoom at a hospital in India where Gayoom’s wife was being treated. Gayoom also recently met with Indian Prime Minister Manmohan Singh.
GMR won a 25 year concession agreement to develop and manage the airport during the Nasheed administration. The opposition at the time challenged the government’s privatisation and threatened to renationalise the airport should it come to power.
19/09/12 JJ Robinson/Minivan News

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FGFA – Quantum leap for Indian aerospace

The signing of the Sukhoi T-50 fifth generation fighter aircraft contract propels India to joint developer of the world’s most advanced stealth aircraft. Two significant developments have stirred up the world of military aviation this year. In March, the U.S. Air Force revealed it had started work to field a new Long Range Strike Bomber by the 2020s. This will be first new American strategic bomber to be built after the Cold War.
 How much the global balance of power has shifted since the Cold War days was clear when it was revealed that the aircraft the American bomber might encounter in the skies will have a large Indian signature – in more ways than one. In August, the Indian Air Force announced that India and Russia are getting set to ink the final R&D contract for the Sukhoi T-50 fifth generation fighter aircraft (FGFA) by the end of the year or early-2013. The contract is worth more than US$ 11 billion, and according to the terms of the agreement both countries will share 50 percent of the costs.
18/09/12 Rakesh Krishnan Simha/Russia & India Report

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Tiger Airways starts lifting cargo from Tiruchi

Tiruchi: Air cargo uplift capacity from Tiruchi has gone up substantially as Tiger Airways, which operates direct services to Singapore from here, has started lifting cargo from here last week.
Tiger Airways is the fourth major airline to lift cargo from the city after Sri Lankan Airlines, Air Asia and to a certain extent, Mihin Lanka. Air India Express, the other major operator from the city, remains the only airline that does not lift cargo though it operates services to Singapore, Dubai and other destinations. According to sources at the airport, Tiger Airways started lifting cargo from October 15 onwards. Hitherto, cargo bound for Singapore from here were sent through Colombo or Kuala Lumpur.
With this, the total available capacity of the airlines for cargo exports from the city would be around 300 to 350 tonnes a month. Currently, Tiger Airways operates nine flights a week on the Singapore-Tiruchi-Singapore sector and is likely to add two more flights a week by October. Apart from this, Sri Lankan Airlines operates 14 flights a week to Colombo and Air Asia seven to Kuala Lumpur, all of which can carry cargo now.
19/09/12 S. Ganesan/The Hindu

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Thiruvananthapuram to receive chartered flights after a hiatus

Thiruvananthapuram: After three years, chartered flights from Moscow and Ekaterinburg in Russia will start arriving here from the third week of October, raising hopes of a good tourist season among the hospitality and travel industry here.
A flight from Ekaterinburg, the fourth largest city in Russia, with 284 tourists is to touch down at the Thiruvananthapuram International Airport around 10 a.m. on October 18. Confirming the arrival of the flights, Airport Director V.N. Chandran said it would be the maiden chartered flight to land at the airport after the commissioning of the world-class terminal at the airport.
Since 2009, no chartered flights have touched down at the State capital, mainly due to poor response from foreign tourists. The beach resort of Kovalam was badly hit by the lack of chartered flight operations.
19/09/12 S Anil Radhakrishnan/The Hindu

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SilkAir to start Vizag-Singapore non-stop flight from Oct 28

Visakhapatnam: SilkAir, the regional wing of Singapore Airlines, will commence services from Visakhapatnam to Singapore from October 28.
With this new air link, the global route network of the airlines will grow to 42 in twelve countries, according to G.M Toh, the General Manager of Singapore Airlines (India).
At a press meet here on Tuesday, he said it would be the first international non-stop flight from Vizag and it would boost commerce and trade between the two cities.
Visakhapatnam, he said, was one of the fastest growing cities in India and improved air connectivity would impart impetus to its growth. The flight would be operated thrice a week and depending on the need the frequency would be enhanced, he said.
18/09/12 Business Line

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Mahindra opens first technical centre in US

New Delhi: Diversified conglomerate Mahindra & Mahindra today said it has opened its first technical centre in the US to provide design and consulting services to automotive customers, mainly in Michigan region.
“Mahindra inaugurated its new Technical Center in Troy, Michigan today. This facility is the company’s first technical centre in USA and will leverage Michigan’s large automotive talent pool to provide design and consulting services for Mahindra’s automotive customers in the region,” the company said in a statement on its website.
This new facility will initially employ 25 engineers and has been designed to accommodate double that number in the future, it added.
Commenting on the development, Mahindra Group Chief Executive (Technology, Product Development and Sourcing – Automotive & Farm Equipment Sectors) Rajan Wadhera said, “This new Technology Centre will serve as a base for Mahindra to address the engineering demand for our automotive and farm engineering requirements together with our Global Development Centre in India.”
19/09/12 PTI/Business Line

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India airlines least in need may gain most from new rules

Mumbai: India’s decision allowing airlines to sell stakes of as much as 49 per cent to overseas carriers may be most beneficial to operators least in need of investment.
SpiceJet Ltd, which has said it’s in “no rush” for funds, may be the most appealing target for foreign investors because of the discount carrier’s low debt and record of profitability, said Sharan Lillaney, an Angel Broking Ltd analyst. Kingfisher Airlines Ltd may struggle to win investment, even as billionaire Chairman Vijay Mallya seeks new financing, after posting at least five straight annual losses.
“The biggest beneficiary will be SpiceJet as it has lower debt and a decent brand image,” Lillaney said. “Kingfisher needs to restructure its balance sheet and convert debt into equity before it can look at attracting any foreign investment.”
18/09/12 Bloomberg/Gulf News

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'Aviation sector is not in shape to excite overseas players'

Chennai: Shares of media tycoon Kalanithi-Maran's companies have been rising since Friday after the government opened doors for FDI in aviation, DTH and cable industries. The Sun Group is one of the largest media houses in the country and also the owner of SpiceJet, which has an 18% market share in the country's aviation industry.
While analysts feel that the airline would be a major beneficiary of the move due to a significant market share and a relatively small balance sheet, the market was also quick to react on the day FDI in aviation was announced — shares of SpiceJet rose by 13% and Sun TV's shares went up by 8.70%.
In an interview with T E Narasimhan, Sun Group's Chief Financial Officer S L Narayanan said the recent reforms announced by the government would certainly send the right signal to the global investor community. For SpiceJet, it will be easy to access growth capital from a new class of strategic investors.
18/09/12 T E Narasimhan/Business Standard

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FDI can open up jobs in retail and aviation

Bangalore: Irrespective of the political furore over entry of foreign direct investment (FDI) into the retail and aviation sectors, the impact on the organised job market is likely to be highly positive, say experts.
FDI will spur more investments, lead to expansion and mergers and acquisitions, and change ownership in retail and aviation. All this will ultimately create more jobs, they said.
Aditya Narayan Mishra, president - staffing, Randstad India, an HR services firm, said it is not possible to cite a precise figure for the number of jobs that FDI in these sectors will create. But hiring will happen at a faster pace, he said.
Randstad estimates that the consumer retail sector will add over 54,000 jobs this year, while aviation will give direct and indirect employment to 1.7 million people.Kumar Rajagopalan, CEO, Retailers Association of India, said for every 250 sq ft of retail space that is added, one new job is created. “With FDI, the opportunities will be more,” said Mishra.
18/09/12 Priyanka Golikeri/Daily News & Analysis

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Burqa-clad gold smuggler arrested

Chennai: After a spate of gold smugglers were held trying to sneak the precious metal from Sri Lanka into Chennai, Customs officials caught a burqa-clad woman from Singapore on the same charge.
According to airport sources, Kulsum (42), who arrived in the city on a Jet Airways flight on Sunday night at 11.30 pm, raised the suspicions of the customs sleuths because she appeared nervous.
After her entire baggage was checked inch by inch, the woman was asked to go for a body check.
At this juncture, she threw a fuss and refused to submit to a search. Customs sleuths then forced her to hand over her burqa. They found 520 gms of gold jewellery sewn into the lining of the dress.
18/09/12 New Indian Express/IBN Live

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Copies of The Hindu found in diplomatic bag that went down with AI aircraft 46 years ago

New Delhi: A bag of Indian diplomatic mail, which went down with an Air India (AI) aircraft 46 years ago in the French Alps, was on Tuesday put on display in the Ministry of External Affairs.
A tough khaki sack with Ministry of External Affairs stencilled in fading black, it yielded not diplomatic papers but Air India calendars and newspapers, including copies of The Hindu, then priced at just 13 paise. Dated January 21, 1966, The Hindu’s slightly shrivelled front page indicated that the previous day had been newsy — Indira Gandhi, the Prime Minister designate, had said a new Cabinet would be sworn in on January 25 but declined to answer questions on the probable candidates.
The bag was in the cargo hold of an Air India flight, named Kanchenjunga, which crashed on Mont Blanc in the Swiss Alps while descending for a stopover at Geneva killing all the 117 aboard, including noted nuclear physicist and father of the Indian nuclear programme Homi Jahangir Bhabha and upcoming trade union leader Satish Loomba.
18/09/12 The Hindu

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Sick woman grounds flight

A London-bound aircraft flying over Chennai airspace on Sunday night made an emergency landing here after an Australian woman onboard suffered an epileptic attack.
According to airport sources, the Virgin Atlantic flight from Kuala Lumpur to London via Abu Dhabi was near Chennai when 26-year-old Nguyelle Hoaimi suffered seizures. The crew was not able to stabilize her condition and they sought permission from the Air Traffic Control here for an emergency landing.
18/09/12 New Indian Express/IBN Live

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Gulf airlines show lukewarm response to India’s FDI policy

Dubai: Five days after India opened up its aviation sector for 49 per cent FDI (foreign direct investment), Emirates says it is not looking at acquiring a stake in any of the Indian carriers, while Etihad Airways says it will make such investments only if it’s convinced of strong commercial prospects.
A lot of it has to do with the fact that the Indian aviation sector on the whole has been ailing for a while with the country’s flagship carrier, Air India, waiting to be thrown a lifeline, and carriers such as Kingfisher Airlines barely managing to survive.
“Emirates has no plans to acquire a stake in another airline in India or anywhere else. We are busy focusing on the many aspects of our own growth including the launch of flights to five new destinations in as many months,” an Emirates spokesperson told Gulf News in an e-mailed statement, adding that the carrier operates 158 weekly flights to India at present.
17/09/12 Shweta Jain/Gulf News

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Foreign investment in aviation unlikely to soar for now

Mumabi: The aviation industry in India has to overcome several challenges before a turnaround happens, since capital infusion can seldom be a solution to a weak business model, say aviation analysts.
While FDI in aviation may bring in much-needed long-term financial and strategic capital and expertise, the aviation industry has to overcome high fuel costs, stiff competition and its capital-intensive nature with high fixed costs.
Analysts said fuel costs, the largest cost component for airlines, considerably impacts operating margins, but are beyond their control. Aviation turbine fuel (ATF) prices are driven by fluctuations in global crude oil prices.
Currently, national sales tax average is 25-30 per cent on ATF, which is a major burden for Indian carriers as fuel costs account for over 45-50 per cent of costs.
Nivedita Ganguly/Business Line

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Small airlines to get a boost from more FDI in aviation

Mumbai: Regional connectivity is likely to get a boost after the government's nod to foreign airlines to invest in non-scheduled airlines, or carriers that operate without a fixed schedule.
Experts said the decision could open up opportunities for about a dozen small regional players that have sprung up in the domestic aviation sector, even as the bigger airlines have been ailing. Such airlines can harness the seasonality of air traffic to their advantage and do without deploying a dedicated aircraft, they said.
"It will give an airline the flexibility to come in as an operator where it can press aircraft into service when the seasonal traffic for a Dubai shopping festival or any such event is there for the taking," said Amber Dubey, a partner at KPMG.
17/09/12 Times of India

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Haj pilgrims to take off from old terminal

Lucknow: Haj pilgrims will be flying from the old terminal of Lucknow airport from Monday. Airports Authority of India (AAI) officials on Sunday said that the decision has been taken keeping in view comfort of the hajis. Amausi airport director, Suresh Hota said that they have made adequate arrangements for the pilgrims to fly from the old terminal. It will be after a gap of over three months that the old terminal will be open for the public once again. It was closed in the first week of June after the new terminal became operational.
17/09/12 Times of India

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Myanmar Seeks Partners for Airport Upgrade

Expecting an influx of tourists and foreign businesses, Myanmar's government is seeking private-sector partners to jointly develop Mandalay International Airport into a logistics center.
Successful bidders for the public-private project will work with domestic authorities to upgrade and operate the airport, which serves Myanmar's second-largest city and is one of three international airports in the country—the other two being in Yangon, the commercial center and largest city, and Naypyitaw, the ready-made capital.
The work would include improving and expanding the terminal building and other facilities, as well as managing passenger and cargo operations, ground-handling and catering services, and maintenance, Myanmar's department of civil aviation said in a statement last week. It didn't estimate the cost or offer a schedule for the project, which would involve private-sector financing.
As of Sept. 13, a total 30 companies had applied to participate in the Hanthawaddy project tender, according to Myanmar's civil-aviation department. All but two are foreign, from more than a dozen countries including China, Singapore, Germany, India, Japan, South Korea, Malaysia and the U.S.
17/09/12 Chun Han Wong/Wall Street Journal

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FDI in Indian carriers may take a month

New Delhi: Officials in the Civil Aviation Ministry told Deccan Herald on Saturday that they were expecting the minutes of Friday’s meeting of the Cabinet Committee on Economic Affairs, which approved 49 per cent FDI in Indian carriers, by next week. The ministry will then frame the rules, which will have to be approved by the Law and Finance ministries.
According to the approved policy, the airlines getting foreign funding will be required have Indian citizens as CEO and MD while three-fourth of the directors should be Indians.
Considering security issues, the proposals will be vetted by the Foreign Investment Promotion Board. Besides, the joint venture company will have to be registered in India, doing its major business within the country.
However, high price of jet fuel and airport charges could be a dampener for the foreign airlines keen to enter the Indian market.
Foreign airlines like the Emirates, Singapore Airlines, Etihad, Lufthansa, Virgin Atlantic and Cathay Pacific may be among the carriers interested in investing in India.
15/09/12 Deccan Herald

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Major US dailies hail FDI decision

New York: Leading dailies in the United States have described India’s decision to allow foreign direct investment (FDI) in multi-brand retail and aviation as “biggest economic reforms” in two decades, while apprehending these proposals pose a “big political risk” for the Prime Minister Manmohan Singh-led UPA government.
The New York Times said Singh’s Congress-led government was “under heavy pressure to kick-start India’s slowing economy, boost employment and improve the country’s shambolic infrastructure” and allowing major foreign brands like Walmart into the country was a step in that direction.
It said the decision to open the retail, aviation and broadcast sectors to foreign investment was ‘the biggest economic reforms in two decades’ but the plans will continue to stir controversy”.
The Washington Post said the reforms announced by Singh “are the biggest and toughest reforms since Manmohan Singh took over in 2004”.
Singh is taking a big political risk with the economic proposals, which could end up breaking up his governing coalition,” it said.
16/09/12 PTI/Business Standard

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Don’t look for the gainers

The announcement on aviation gives the go-ahead for foreign airlines to own up to 49 per cent stake in domestic passenger airlines. Expectation of this has sparked off a rally in all listed airline stocks from the distressed Kingfisher Airlines to Jet Airways and Spicejet. But that seems irrational.
If you were a foreign airline company looking to buy into the India story on air travel, where you would choose to deploy your capital today? Would you sink money in order to revive Kingfisher, with its depleted operations, huge debt burden and high cash burn?
Or would you rather bet on the other listed airlines which stand to gain from the forced consolidation in the sector, by way of less capacity, higher airfares and better load factors? That points to Spicejet or Jet Airways as the only likely choices for these foreign investors. Similarly, hopes that global retailers will rush to sew up deals with Pantaloon, Shopper’s Stop or other cash-strapped players owing to liberalised FDI seem misplaced. Reading through the announcement shows that these new foreign players will have to jump through many hoops to get their India investments off the ground.
16/09/12 Aarati Krishnan/Business Line

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Lufthansa not to buy stakes in domestic airlines

Bangalore: German airline Lufthansa has said that it would not pick up equity in any airlines in India even though the Government has opened up the sector for FDI.
Lufthansa’s head of corporate communications for Asia Pacific, Frank Puttmann said, while India continues to be the top market for the airline, there are no plans to pick up equity. “At this moment, our strategy is to build up a strong presence in India. India is the top market for us worldwide. It is a strong message for the market,” he said.
Puttmann said airport companies in India should work along with the airlines because they are partners in their business. Hence, the decision to impose heavy airport charges would be counterproductive.
15/09/12 Business Line

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'FDI in Civil Aviation Sector a win win situation'

New Delhi: Reacting to government’s decision to allow foreign airlines to pick up stake in domestic carriers, Mr. R V Kanoria, President, FICCI said “this long overdue measure has happened at a time when the domestic aviation industry is going through rough weather and is starved of funds and technology for fleet modernization and improvement of operational efficiency.”
“Allowing foreign players in the airline sector is expected to lead to a win win situation. It will not just help the beleaguered airlines but will be good for the Indian consumer as well. The possibility of new joint ventures entering the market with the help of foreign strategic partners will result in greater competition and more choices for the consumer. Improved customer service standards and reduced tariffs will follow as has been the experience in sectors such as telecom and manufacturing”, he added.
15/09/12 Odisha Diary

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Spicejet, Kingfisher seem early birds to catch FDI flight

Mumbai: Except for the cash-strapped Kingfisher Airlines (KFA), most private airlines are unsure over the possible benefits of increasing FDI in the sector to 49 per cent.
It may be noted that domestic carriers like Kingfisher, SpiceJet and Jet Airways have been telling the media that they are independently in talks with foreign carriers for a probable stake sale if FDI is allowed, while the public stance of profitably-run Indigo is that it is not too keen to tap the capital market.
Jet Airways said, “We welcome any policy initiated by the Government of India,” which suggests it is not clear on the development, while KFA, having a debt of over Rs 7,000 crore, said, “The FDI in airlines will open up a wide range of opportunities for both domestic as well as foreign carriers which wish to participate in the strong growth potential for civil aviation in our country.”
15/09/12 Deccan Herald

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GMG Airlines to pay Rs 40 K

New Delhi: Bangladesh-based GMG Airlines has been directed by a consumer forum here to pay Rs 40,000 to a passenger for not accommodating him on another plane after one of its scheduled flights was cancelled.
The New Delhi District Consumer Disputes Redressal Forum awarded the compensation saying not only was the flier inconvenienced by the flight cancellation, but he also had to bear additional expense of buying another ticket for returning to India from Malaysia as well as hotel charges.
"Complainant (Sukhija) was forced to purchase another ticket for return journey...He suffered lot of inconvenience due to cancellation of the flight and (had to) bear expenses towards hotel charges, etc.
16/09/12 Financial Express

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Foreigner held on false charges returns home

Chennai: Zaw Lin of Myanmar left for home via Bangkok on Saturday with bitter memories. The 36-year-old sailor was arrested by the Chennai airport police late last year and spent nearly two months in Puzhal prison and a few months in a room in Guindy before the Madras high court quashed the case against him and ordered his release last week.
On October 9, 2011, Lin, a sailor with merchant vessel Gati Pride, was leaving for home when he was arrested at the airport. He was charged with tampering a photo in his Continuous Discharge Certificate (CDC), the passport of seamen, and remanded in prison.
Talking to TOI before leaving, Lin said he wanted to forget those dark days. "I pleaded with the airport police to check my passport and all travel documents which had the same photograph but they accused me of tampering with the photo in my CDC. They harassed me," said Lin, who neither knew English nor Hindi and couldn't explain his case.
16/09/12 Arun Janardhanan/Times of India

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Air India should behave responsibly’

Muscat: As the saga of cancellation and postponement of flights have become an order of the day and as a result, the expatriates travelling up and down India are constantly left in dark, an ex-minister of the Kerala cabinet has urged the Air India management to behave more responsibly towards Indians in this diaspora.
“The Air India management in Mumbai should behave more responsibly towards its passengers and should avoid unwanted interruptions to their itinerary and save them from ordeals because expatriates are a major supporter of the Indian economy”, Elamaram Kareem, Minister for Industries and Commerce in the Left Democratic Front government under V S Achuthanandan between 2006 and 2011 said in Muscat during a private visit.
“Air India is acting according to the whims and fancies of a select group of people who control the management of the national carrier. They are just acting to a pre-penned script of some people with vested interests and the ultimate suffering is to the ordinary expatriates who travel once or twice in a year to see their kith and kin back home”.
16/09/12 Oman Daily Observer

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Flight makes emergency landing

Owing to a hydraulic obstruction, Emirates Air flight EK530 from Dubai made an emergency landing at the Kochi airport on Friday.
As the Air Traffic Control here was pre-warned about the landing difficulty, no mishaps were known to have occurred at the time of the landing.
16/09/12 New Indian Express/IBN Live

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FDI in aviation: Lukewarm response from foreign airlines

New Delhi: The decision to bring in FDI in aviation got a rather lukewarm response. While cash strapped Kingfisher airlines welcome it and their morale is up for now, several foreign players were more circumspect.
But the big question who will invest in Indian carriers with struggling finances? Sources at Kingfisher airlines tell CNN-IBN that talks with either Qatar or Etihad airlines will now resume. Kingfisher reported losses of over Rs 2,000 crores. Sun group-run Spicejet is in talks with Emirates, one of the largest foreign airlines to operate out of India, confirm sources in the airline, but Emirates is not willing to confirm for now.
President, Emirates Airlines Tim Clark said, “We are looking, we are very interested in civil aviation in India but we are not getting involved in investment with some of their carriers.”
15/09/12 Karma Paljor/CNN-IBN

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US dailies hail FDI liberalisation in retail, aviation as 'biggest economic reforms'

New York: Leading US dailies have described India's decision to allow FDI in multi-brand retail and aviation as "biggest economic reforms" in two decades, while apprehending these proposals pose a "big political risk" for the Prime Minister Manmohan Singh led UPA government.
'The New York Times' said Singh's Congress-led government is "under heavy pressure to kick-start India's slowing economy, boost employment and improve the country's shambolic infrastructure" and allowing major foreign brands like Walmart into the country is a step in that direction.
The leading US newspaper said the decision of the government to open the retail, aviation and broadcast sectors to foreign investment is "the biggest economic reforms in two decades" but the plans will continue to "stir controversy, and it was not clear whether the government's shaky coalition would hold together long enough to carry them out".
15/09/12 PTI/Economic Times

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Air policy opening gets qualified welcome

Mumbai/Delhi : The Cabinet on Friday decided to allow foreign air carriers to take up to 49 per cent stake in domestic airline companies, ending five years of dithering in the face of opposition from sections of the political spectrum.
Addressing a press conference after the cabinet meeting, Anand Sharma, commerce minister, said: “Detailed rules for the FDI will be framed by the ministry of civil aviation. However, the chairman and two-thirds of the directors of the company have to be Indians.”
Reacting on the FDI approval, Ajit Singh, the civil aviation minister, completely ruled out Air India, the government-owned carrier, opting for FDI. He said, “The decision sends a clear message for the sector that is under stress. Now, the banks can look at them favourably. The managerial and technical expertise will be available to local airlines, plus everything that goes with this. Code sharing benefit will also be there.”
15/09/12 Business Standard

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India's tractor boys are preparing for take-off

For the past year and a half, the Indian business capital of Mumbai has been awash with tales of corruption, slumping growth and the fall from grace of some of the country's best-known tycoons.
But the newly minted chairman of Mahindra Group, one of India's biggest industrial houses, has little time for doom-mongering. A relentless optimist, he admits that India's dramatic boom of the mid 2000s - when GDP growth soared to more than 8 per cent - was always overhyped. But now that it has moderated - to about 6 per cent - there is no reason to question the nation's overall growth story.
"When people raise expectations too high, it is probably unjustified," said Mr Mahindra, 57, who boasts more than half a million followers on Twitter and has made no secret of his wish to turn the group into a global powerhouse. "We should never have been put on a pedestal - but we shouldn't be in the trash can now either."
There are few people better placed to measure India's economic pulse. From the group's wood-panelled executive suite on the 6th floor of Mahindra Towers, Mahindra oversees an empire with sales of US$15 billion. Employing 144,000 people and spanning 18 different industries, Mahindra makes everything from steel to cars, from artillery guns to software and farm equipment. Its staff also sell insurance, financial services, package holidays and property.
He is also looking to branch out into new industries such as aviation, with the ambition of turning Mahindra into India's first domestic aircraft maker. He has put his money where his mouth is. The group has invested US$100 million in a new aerospace factory in Bangalore and has bought Gipps Aero, an Australian aircraft manufacturer whose technology is being used as a platform for the group's growth plans.
Mahindra Aerospace, one of ten main-group businesses, is already supplying components to established players and is working on designs for new ten-seater and 18-seater aircraft, which would be sufficiently robust to land on rural airstrips in remote parts of the country.
15/09/12 Robin Pagnamenta/The Australian

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