Private airports protest regional carrier sops

Civil Aviation Minister Praful Patel's ambitious policy to encourage regional airline carriers has hit an air pocket with private airport developers opposing a stipulation to offer these carriers infrastructure free of landing or parking fees.
Private airport developers in Delhi, Mumbai, Hyderabad and Bangalore, said landing and parking fees account for a significant proportion of revenues, so offering these services free would be unviable.
An executive of GMR Hyderabad International Airport Ltd (GHIAL), which runs the Hyderabad airport, said that aeronautical charges would be the key revenue earner till 2009, accounting for a third of the airport's revenues.
"Once the airport starts earning non-aeronautical revenues from hotels and other projects, it will be in a position to offer free landing and parking services," he said.
Airport developers also said providing space to smaller aircraft was unviable until their facilities are fully modernised.
"Smaller aircraft have to maintain a greater distance with larger aircraft in the air. This leads to inefficient use of airspace and runway. Operating such aircraft would only be possible after the new runway comes into place," said a Delhi airport official.
Smaller aircraft, which carry fewer passengers and put the same kind of demand on the airport infrastructure, would be very unviable to operate in the airport at this stage, an executive of Mumbai airport added.
03/10/07 Anirban Chowdhury/Business Standard

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Regional airlines policy a non-starter in Delhi, Mumbai

New Delhi: Infrastructure crunch in Delhi and Mumbai airports is now setting alarm bells ringing among private players who want to make the most of the ongoing aviation boom. With both these airports in no position to handle any more small planes, the recently cleared policy for regional airlines has been a non-starter in north and west India where Delhi and Mumbai are the bases. Almost all applications for regional airlines are for south and northeast India.
The Bird Group, a leading provider of IT services to travel industry, is now closely watching the pace of development at IGI to see when the third runway is ready. "Had infrastructure been in place, we would have launched our regional airline for the north immediately. Now the airline should take wings in 2009. There's no point having a 30-minute flight from some city to Delhi and then hover at IGI for about an hour," said Ankur Bhatia, the group's executive director.
Delhi airport expects to get an additional runway by next summer and that may solve air traffic congestion to some extent.
The real alarm bells are ringing in Mumbai as the Navi Mumbai airport - the only hope for easing the city's notorious congestion — has now hit the coastal regulation zone hurdle.
What worries aviation industry in Mumbai is that all alternate sites talked about for Mumbai like Thane are still a distant dream.
03/10/07 Saurabh Sinha/Times of India

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Avicore plans cargo airline by mid-2008, to invest Rs400 crore

New Delhi: Logistics start-up Avicore Aviation Pvt. Ltd plans to invest $100 million, or about Rs400 crore, to launch a new cargo airline before mid-2008 from the country’s first dedicated cargo airport at Nagpur.
The start-up is backed by Indian and some US-based non-resident Indian businessmen through Avicore Llc.
The main Indian promoter is Abhay Lodha, managing director of Mumbai-based Topworth Group, which has interests in steel and power plants, along with Avicore Aviation chief executive Shankar Devarajan. Avicore is the third firm that has applied to the government for a licence to launch a cargo airline.
The firm is looking to lease or buy five Boeing Co.-made B737 aircraft. A B737 can carry about 15-17 tonnes of freight compared with long-haul B747’s 100-tonne capacity; the latter is widely used by international cargo carriers. The first of the aircraft will be converted to freighters from passenger jets.
03/10/07 Tarun Shukla/Livemint

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Mumbai flight gets inaugural send-off

Jaymini Patel was amazed Monday night as she approached her gate at Newark Liberty International Airport for her first flight home to visit her family in India in two years.
A raucous Indian party was in full swing behind a phalanx of security personnel at Gate 90. It was an inaugural celebration for Continental Airlines' first nonstop flight to Mumbai, India, complete with sitar and tabla players, traditional dancers, a henna artist and a lavish buffet of Indian food.
"It blew my mind," said Patel, 30, who works in human resources for Sumas Corp., an information technology company in Edison. "It was a great welcome. I felt like I was already in India."
Continental Airlines has been courting the Indian diaspora in the Northeast since 2005, when it started nonstop service to Delhi from Newark. Ticket sales to New Jersey's community of 257,000 Asian Indians will contribute to Continental's success with the route; but the most important source of revenue will be the business travelers from northern New Jersey who are very interested in saving at least four hours and avoiding a stop in Europe, said Robert Mann, an airline industry analyst and consultant, in Port Washington, N.Y.
Mumbai will be Continental's 30th trans-Atlantic route.
At 6 p.m., Jeff Smisek, president of Continental Airlines, made welcoming remarks that drew applause from the passengers, when he noted the auspicious date of their arrival, the birthday of Mahatma Gandhi, the late political and spiritual leader of India.
Then Smisek slipped off his shoes and participated in a traditional puja ceremony for success and safety in front of a shrine to the elephant-headed god Ganesh conducted by Pravinchandra Maheta, a Hindu priest from Parsipanny.
In deference to the setting, the coconut used in the ceremony was broken with a hammer, instead of being flung onto the floor.
Continental will initially operate four flights a week to Mumbai's Chhatrapati Shivaji International Airport until Oct. 28 when it will begin daily flights. It will fly its largest aircraft, the Boeing 777-200 on the route until it accepts delivery of Boeing 787 Dreamliners that are on order, Smisek said.
Flights to Mumbai also will have Indian cultural touches on board, such as ethnic food and a prohibition on beef, which is culturally taboo.
03/10/07 Abby Gruen/The Star-Ledger - NJ.com, US

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Deccan to leave metro routes for Kingfisher

New Delhi: In a bid to wipe off red ink from its balance sheet, India’s largest budget carrier, Air Deccan, is planning to withdraw from all loss-making routes. The new strategy being scripted for the Bangalore-based carrier following its takeover by Vijay Mallya’s UB Group positions it on non-metro routes. The metro routes would be the focus of Kingfisher with its premium full-service model, aiming at improved revenues.
Air Deccan may also reduce frequency on routes like Delhi-Bangalore. At the same time, Kingfisher is expected to go all out on busy sectors like Delhi-Mumbai and Delhi-Bangalore.
According to industry sources, Mr Mallya held a meeting on Monday with Kingfisher and Air Deccan officials and reviewed the route rationalisation process being carried on by the two airlines. He stressed that both ailines should have their focus clearly defined rather than competing with each other. Mr Mallya’s UB Group acquired 26% stake in Air Deccan for Rs 550 crore in June this year.
Rebranding of Air Deccan is likely to take effect from October 15, the sources said.
03/10/07 Nirbhay Kumar/Economic Times

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IBSA summit to further strengthen trade ties

Pretoria: The second annual India-Brazil-South Africa (IBSA) summit could result in the trilateral initiative achieving their trade target of $10-billion within the next few years.
Events leading up to the summit, to be held at the Presidential Guesthouse on 17 October, will provide a platform for the formation of trilateral business partnerships aimed at enhancing existing trade between the three members states.
Speaking at a press briefing Tuesday, Ambassador Jerry Matjila, Head of the Asia and Middle East Section in the Department of Foreign Affairs said that since the formation of IBSA in 2003, trade between the three countries has increased to between $6 and $7 billion dollars.
A business forum will form a major component of events leading up to the one-day summit and will see over 200 business people from India, Brazil and South Africa attending the discussion groups at the Sandton Convention Centre on 15 and 16 October.
Mr Matjila said it was a chance for them to form trilateral companies especially in emerging opportunities in the transport, maritime and aviation sector.
He said the increased volume of air traffic had resulted in plans for Indian airline, Jet Airlines, to fly to OR Tambo International Airport soon and government hoped that the private sector would move into this area.
02/10/07 Sholain Govender/BuaNews Online (press release), South Africa

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Jammu airport to be made an international one

Jammu: With the upgradation of the facilities and services in a phased manner, the Jammu airport would soon be converted into an international airport, Jammu divisional commissioner Sudhanshu Pandey said on Tuesday.
"Under the upgradation plans, the runway would be extended by another 1,300 feet towards the direction of Tawi,'' Mr Pandey said, who presided over a meeting of officials from Airport Authority of India, the army, the Air Force and civil administration h ere yesterday.
Modalities will be worked out to transfer land belonging to army and civil structures to Airport Authority of India (AII), he added. Separate parking space for incoming and outgoing passengers would be created.
"This would be done by extending the existing one and constructing a new parking lot in the vicinity,'' he said. Keeping in view the security of passengers, a gate would be erected on the front side of the airport.
02/10/07 Business Line

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AFL eyes contract as UPS’ local partner

Mumbai: Marking the end of a 28-year strategic alliance in courier operations, DHL Express, the Bonn, Germany-based courier and logistics major, has parted ways with its Indian master franchisee, AFL Pvt. Ltd, which, in turn, is now eyeing a deal with Georgia, US-based United Parcel Service Inc., or UPS.
Effective 1 January, DHL will use air express and transportation company Blue Dart Express Ltd, in which DHL Express has an 81.03% stake.
AFL, meanwhile, is hoping to tap UPS as a strategic partner to continue its courier operations in the country.
A senior AFL executive, who did not wish to be identified, confirmed the developments, including the potential UPS tie-up. AFL chairman and managing director Cyrus Guzder couldn’t immediately be reached for comment.
Founded in 1945 when Guzder was appointed by Tata Airlines (now Air India) as its first sole cargo agent in the country, AFL introduced India to the concept of express delivery (courier services) through an exclusive alliance with DHL Worldwide Express in 1979. Later, AFL launched its domestic courier service, called AFL WiZ in 2001.
03/10/07 P.R. Sanjai/Livemint

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Health workers say India should join UNITAID

Healthcare NGOs, physicians and networks of people with HIV/AIDS have sent a memorandum to Prime Minister Manmohan Singh, urging him to speedily ensure that India joins UNITAID, an international drug purchase facility. They say that in the next few years there will be huge fund shortages to buy essential medicines in countries like India. Malaria, tuberculosis (TB), HIV/AIDS are illnesses for which, experts say, a second line of medicines will soon be needed.
The healthcare sector and positive people's networks are now asking India to join UNITAID, set up in September 2006 to generate money for medicines. India's National Aids Control Organisation (NACO) chief Sujata Rao was an observer at the initiative, which now has 30 members but India is yet to become one.
The fund's money is generated through an aviation-linked levy called solidarity tax. A part of the fund generated by each country goes to UNITAID. With this UNITAID does bulk purchase of drugs and gives it to needy countries.
Every flight ticket purchased automatically donates a dollar or two to UNITAID. In the past one year, over $300 million has been collected from nine member countries through this mechanism.
India has about 450 airports, 50 foreign airlines flying in, and 12 domestic airlines. Air traffic in India is projected to be to the tune of 90 million people by 2015. Today there are 50 million air travellers in India, annually. If each ticket can contribute Rs.100, "that gives the measure of the kind of money that can be generated to support the cause of second line medicine", Celina told IANS.
UNITAID members like Norway contribute through a kerosene tax while Britain, Spain and South Africa do so through budgetary allocations.
France has been particularly pro-active with Air France making across the world contributions for every seat on its flights and the tax has not hindered its growth.
In 2001, India, along with other 189 member states, endorsed the UN Declaration of Commitment on HIV/AIDS. As a signatory nation, India has also pledged "in particular to ensure their (AIDS patients') access to treatment" and India's universal access target date is 2012.
India has the third largest population of those living with HIV/AIDS and health officials say about 700,000 need Anti Retroviral Therapy (ART). In 2004, the government launched a free-ART programme, but in 2006 only about 40,000 had access to the medicine.
Along with free ART, TB is treated freely too and there is a demand in India's north eastern states that free treatment for Hepatitis C also be provided.
"NACO has begun the third phase of its control initiative in the country, but has no word on the second line of ART that will be required soon," Sundar Sunderaraman, a physician, told IANS.
03/10/07 Papri Sri Raman/indiainteracts.com

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Over a lakh go abroad from Bajpe airport

Mangalore: As Bajpe airport — the only one in the state to have two runways — completes one year of international flight services, the mood here is upbeat.
Having handled more than one lakh international commuters in the first year, more services appear to be in the offing even as the airport hopes to make huge profits — about eight times last year’s profit.
International services started between Mangalore and parts of West Asia on October 3 and in the past one year, six lakh passengers used the airport. The number of international passengers stood at 1.08 lakh. The remaining were domestic passengers, M.R. Vasudeva, director of the airport, told. In the international sector, the airport handles passengers bound only for West Asia.
The airport handled 7,378 aircraft movements (arrival and departure) during the period of which 720 were from and to West Asia.
At present, Mangalore is connected to Dubai, Bahrain, Muscat, Doha and Abu Dhabi. Air India Express is planning to connect Mangalore with Sharjah shortly.
When the first flight service between Dubai and Mangalore began on October 3, 2006, it was thrice a week with six movements per week.
03/10/07 The Hindu/Bellevision

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Foreign IT cos, SIDBI likely to buy 25% in Mennen Aviation

Mumbai: Mauritius-based gaming firm Pallagames and UK-based IT firm Trilogix along with Small Industries Development Bank of India (SIDBI) are close to picking up around 25% stake in Mennen Aviation and Hospitality (MAHL), a Mumbai-based, real estate, gaming and aviation services firm.
“We have already finalised an equity deal with Sidbi while negotiations are on with Pallagames and Trilogix. MAHL has plans to raise around Rs 150 crore through a mix of debt and equity for our expansion plans. We have plans to offload around 25% equity to raise part of the required funds,” MAHL managing director Dinesh Menon said.
MAHL is currently developing around 100 acres of land in Mumbai, Goa and Karnataka. The firm is also setting up around 15 service apartments in these regions by 2012. The first project is coming up at Goa, which will be operational by the end of the year.
The firm has plans to set up an aviation training centre in Goa.
The company has also identified centres like Kochi, Karwar, Gurgaon, Pune, Bangalore, Chennai and Hyderabad for setting up service apartments. MAHL is also setting up gaming centres along with its service centres.
03/10/07 Rajesh Unnikrishnan/Economic Times

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IITB’s annual aviation fest from Oct 5

Mumbai: The annual aviation festival of the Indian Institute of Technology, Bombay, which is organised by the Aerospace Engineering Department from October 5-7, will be first big festival during the Golden Jubilee (GJ) celebrations of the institute. Started six year’s back, the Aerospace Engineering Association conducted Zephyr for the first time in October 2006.
"... The festival aims to act as a forum and encourage exchange of ideas in the fields of aerospace and aviation and will provide ample opportunity for technical interactions,” said Vimit Gandhi, Zephyr manager.
Static display of IAF chetak fighter helicopter, live helicopter operations by IAF commandos and Jaguar seat ejection system will be integral to the exhibition.
Significantly, the main highlight of the event this year is the keynote address by astronaut Sunita Williams on October 6.
03/10/07 Mumbai Newsline

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Hyderabad institute, US college tie up for aviation course

Hyderabad: Hyderabad-based Sreenidhi Institute of Science and Technology (Snist) has entered into an agreement with Vaughn College of Aeronautics and Technology to offer four-year degree courses in electronics engineering technology (avionics), airline management and airport management in India. Read On >>

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Sri Lanka women take to the air, despite air pockets

The future for women in Sri Lankan aviation seems to be taking a turn for the better with a female air traffic controller set to become the country's chief air traffic controller. Read On >>

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Terror fight needs more cash: CSIS

Neither the RCMP nor Canada's spy agency has sufficient resources to tackle groups in Canada raising money for terrorist causes, the Air India inquiry heard yesterday.
Commissioner John Major expressed surprise that the RCMP received just 17 of the 126 officers requested to deal with terrorism financing probes after new legislation was passed in the wake of the 9/11 attacks. Another 33 were committed last year.
And Jim Galt, of the Canadian Security Intelligence Service, said he could use double or triple the staff that he now has to gather intelligence on terrorist financing in this country.
Still, both the RCMP and CSIS said they are making headway in terms of identifying those responsible for raising terrorist money and eventually prosecuting them.
But Richard Quance, a lawyer representing the Air India victims' families, said he hoped that terrorists would not expand operations in Canada because of weaknesses in the system that allow them to evade prosecution.
"I hope that you can get the resources and funding you need in order to do what I think you see is as a necessary job to combat terrorist financing," Mr. Quance commented to Mr. Galt.
"As to all of those bad guys that haven't made it to your priority list, I hope they will be patient so that you can get the funding in time."
The inquiry has heard that there has not yet been a successful prosecution for terrorist financing in Canada. Nor has there been a single security certificate issued against a charity even though many of the terrorist groups raising money are using registered charities or non-profit organizations.
Mr. Major said politicians need to equip law enforcement agencies with enough resources to do the job legislated.
"It follows that the success of the prosecution of terrorist funding or money laundering depends on the ability of your group to provide intelligence to allow enforcement people to do their work. It's like strangling a snake, in a matter of speaking. If you cut the head off, not much happens to the rest of the body," he said.
And he said terrorism cases seem to move more easily through the British court system. "My understanding is the terrorists who were involved in the subway bombings [in 2005] have been tried."
02/10/07 Kim Bolan/CanWest News Service/National Post, Canada

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