Aviation India: General Aviation Oct 2007:Get All News on Indian Aviation Industry

Showing posts with label General Aviation Oct 2007. Show all posts
Showing posts with label General Aviation Oct 2007. Show all posts

Wednesday, October 31, 2007

India's cockpit crisis

India's fast-growing airline industry is plagued by decaying infrastructure, frequent delays, and financial losses. Now add one more problem: a pilot shortage. Read On >>

Monday, October 29, 2007

Ministry wants end to PSU oilcos' ATF monopoly

New Delhi: The aviation turbine fuel (ATF) market, till now the monopoly of public sector oil companies, could soon witness competition as the ministry of civil aviation has urged the Airports Authority of India (AAI) to develop common fuel infrastructure at airports and enable private oil retailers, such as Reliance and Essar, to enter the fray. The ministry has said throughput charge should not be the basis for awarding contracts to oil companies for supplying the fuel.
The move is intended to stop the trend of public sector oil companies, such as IOC, quoting a higher throughput charge to bag the contract and then passing on the extra burden to airlines. AAI awards fuel supply contracts to companies that promise the maximum throughput charge to it.
Airlines feel competition in ATF supply would lead to lower prices. They have been pushing for oil supply infrastructure to be converted into a common carrier so more players can enter this business. The civil aviation ministry is also supportive of this move as it could lead to some moderation in ATF prices in India, which are among the highest in the world.
“We have asked AAI to help us rationalise the fuel price in the country and bring it to international levels,” an official in the ministry of civil aviation said.
29/10/07 Nirbhay Kumar/Economic Times

Sunday, October 28, 2007

Plan your dream vaction in advance to get bargains

New Delhi: With year-end vacations round the corner, airlines are vying with each other to launch special packages and promotional fares, particularly seeing the new demand for offbeat destinations.
These new or off-beat destinations include places such as Europe, Germany, Austria, South Africa, New Zealand and even China where tourists are planning their year-end holidays.
Says Rajji Rai, secretary general, Travel Agent Association of India (TAAI): “Air travel has increased by 18 to 20% in the past year. We expect at least the same rise this time, particularly in next three months.
But off-beat is where the interesting action lies. People are coming to us looking for something different, from Innsbruck in Austria to Auckland in New Zealand. Advance bookings have already started. We hope to make as much in next three months as we do in the rest of the year.”
Another reason why people are opting for these off-beat destinations is attractive packages. A five-night-six days trip to Austria will cost you Rs 60,000 per person, while the same package to Germany will cost you Rs 65,000 per person.
A five-night package to Europe and South Africa will cost anything between Rs 80,000 and Rs 85,000. For China, the cost per person will be Rs 50,000.
28/10/07 Raja Awasthi & Dheeraj Tiwari/Economic Times

Saturday, October 27, 2007

India, EU paving the way for open skies agreement

New Delhi: India and the European Union could sign an agreement on November 30 that would pave the way for an eventual open skies agreement between them, the Head of the Delegation of the European Union, Ms D. Smajda said on Friday.
Speaking to the media at a conference to announce the launch of Jet Airways daily flight on the Delhi-Brussels-New York sector, Ms Smajda said the finalisation of an agreement during the India-EU annual Summit meeting would provide the legal framework to work towards an open skies agreement between India and the EU.
Addressing the meeting, the Jet Airways Chairman, Mr Naresh Goyal, said that the airline was keen to operate more flights to the US and planned to connect Washington D.C and Chicago among other cities.
“The airline plans to launch a service on the Mumbai-Shanghai-San Francisco from February next year which would make us the only carrier other than the Chinese and the US carriers to operate on the route,” Mr Goyal said.
27/10/07 Kamal Narang/Business Line

Costlier ATF may push air fares

New Delhi: Many domestic airlines have almost decided to raise fuel surcharge - that was hiked by Rs 100 to touch the Rs 1,200 mark on October 1 - again very soon as the international price of crude has touched an all-time high of $ 92.
Oil PSUs declare aviation turbine fuel (ATF) prices on the first of every month and a hike of up to Rs 300 is on the cards from November 2 or 3. Passengers who book their tickets before the hike is announced, won't be required to pay this difference. But coupled with the higher basic fares being charged in this peak travel season, domestic ticket prices are headed firmly northward from next month.
The aviation ministry and airlines have been fighting g a losing battle to keep ATF prices in control because raising petrol, diesel, LPG and kerosene prices is a political minefield. Air travellers, on the other hand, are still considered to be an elite class that can be asked to keep paying more to cross subsidise the types of fuel.
27/10/07 Times of India

BA says India is 2nd largest market

Mumbai: British Airways has identified India as the second largest market after the US in volume terms and the third after Australia in terms of its revenue share. Since last two year, the premiere airline has increased its weekly flights to Indian destinations from 19 to 43 flights.
Robbie Baird, BA's area general manager for the Asia-Pacific Region emphasised the company's plans to stay big in India. He indicated that large planes like Airbus A-380, or the long haul Boeing B-787s could be introduced in the Indian sector in next 4-5 years depending upon the demand growth.
Baird mentioned that the airline's policy was to consolidate and then expand on the existing network.
26/10/07 Business Standard

Flights from Kerala clock 100% rise in 3 years

Chennai: There has been more than 100 per cent increase in air services from Kerala in the last three years, according to figures available with the Ministry of Civil Aviation.
Currently, the total number of flights per week from Thiruvananthapuram is 103, of which 47 are by Indian carriers and 56 by foreign carriers.
In 2004, the total flights per week from the city stood at 54 – 18 by Indian carriers and 36 by foreign carriers.
Currently, Kochi gets a total of 120 services per week – 62 by Indian carriers and 58 by foreign carriers.
In 2004, there were 61 services per week – 31 by Indian carriers and 30 by foreign carriers.
In Kozhikode, there were 43 services per week in 2004, all of which were provided by Indian carriers.
Now, there are 90 services per week, of which 82 are by Indian carriers and the rest by foreign carriers. Air India Express currently operates 106 services per week to the Gulf sector - 38 from Kozhikode, 33 from Thiruvananthapuram and 35 from Kochi.
26/10/07 Business Line

Friday, October 26, 2007

‘Boom in domestic aviation will continue for at least a year more’

New Delhi: The boom in the domestic airline industry will continue for at least another one year with passenger traffic likely to grow at 20-30 per cent.
This is the opinion of more than 60 per cent of the chief executive officers who participated in a snap poll conducted by the Federation of Indian Airlines (FIA).
While declining to divulge which airlines were more optimistic on passenger growth prospects, sources said that the meeting where the poll was carried out was attended by officials of the eight domestic airlines including the Chairman and Managing Director, Air India, Mr V. Thulasidas.
The growth of the industry could be faster if steps were taken to bring down the cost of aviation turbine fuel as also develop airport infrastructure, the CEOs felt. A majority of those present were of the opinion that three-to-five years was a realistic time frame for improvement in airport infrastructure in the metro cities, while it would take one-to-three years for the similar development at airports in non-metro cities.
There was also a feeling that the current Government policy of not allowing two airports in a city needed to be reviewed.
26/10/07 Business Line

Worries, hopes at the flight deck

The chief executives of Indian airlines are worried that infrastructure constraints, especially at airports, will crimp India’s aviation boom. This is among the findings of a CEO poll conducted by the Federation of Indian Airlines, an industry lobby group. Top representatives of local carriers also said they are concerned about current regulatory guidelines and outdated rules.
Maintaining the expectations of an average 30% growth in passengers, the respondents hoped that infrastructure constraints at airports would be addressed in the next three-five years. “Infrastructure constraints at key airports are leading to additional operating costs, such as fuel, maintenance and delayed flights. Due to infrastructure bottlenecks, planes are having 5-10% additional flying time. The impact of this is approximately $80 million (Rs316 crore) a year,” said Saroj K. Datta, executive director of Jet Airways India Ltd.
According to industry estimates, Indian airlines made combined losses of $500 million in 2006-07.
25/10/07 P.R. Sanjai/Livemint

Asia-Pacific to lead global growth in air passengers

Strong growth in the Asia-Pacific region will see its share of global airline passenger traffic increase from 23 per cent last year to 27 per cent of the global total of 2.75 billion passengers by 2011, aviation industry body IATA says.
This is equivalent to a 279 million increase in annual passengers within the region over the five years.
Asia-Pacific will have a higher share of the global market than the US domestic market, although it will still be slightly smaller than the North American market as a whole.
The International Air Transport Association figures show the 2.75 billion figure for total travellers represents a 29 per cent increase on those flying last year.
IATA says the number of travellers taking international flights would increase to 980 million from 760 million in the next five years, with average annual growth of 5.1 per cent.
On domestic routes, passenger demand is expected to hit 1.77 billion by 2011, compared to the 1.37 billion who flew in 2006, in part because of expanded flight traffic inside large countries such as India and China.
26/10/07 Grant Bradley/New Zealand Herald, New Zealand

Carriers loath to ceding ground

New Delhi: Private airlines have asked the government for permission to partly retain ground handling facilities even after the new policy comes into effect in 2009.
The new ground handling policy allows only three agencies - the airport operator, subsidiary companies of Air India, Indian or their JVs, and any other ground handling service provider selected through competitive bidding on a revenue sharing basis - to conduct ground handling services after January 1, 2009.
These restrictions would be in place across six metro airports - Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad.
In a meeting chaired by the civil aviation secretary Ashok Chawla, CEOs of private airlines have sought permission to retain ground handling activities at least till the customer checks in. But the airlines’ plea is unlikely to be accepted just yet.
Once the policy comes into effect, functions such as loading, unloading and delivery of baggage from the aircraft; cabin cleaning; delivery of passengers from terminal to tarmac and vice-versa - all of these would go out of the private airlines’ purview.
26/10/07 Sindhu Bhattacharya/Daily News & Analysis

Thursday, October 25, 2007

Airlines asked to set up regulator

New Delhi: The aviation ministry asked the domestic carriers to set up an independent industry regulator, failing which the government may be forced to create some other mechanism and impose it on them. The ministry had earlier accepted airlines’ views on the issue that a regulator is needed for monopolies like airports and passengers are free to choose airlines they consider consumer-friendly. Following this, the Airports Economic Regulatory Authority (AERA) Bill did not cover airlines.
"This Bill is with the Parliamentary standing committee on transport, tourism and culture. There’s near unanimity among the members of this panel that airlines need to have a regulator..." said a source. Some MPs are learnt to have expressed concern over the omission of airlines from AERA Bill.
In a meeting, top ministry officials, headed by aviation secretary Ashok Chawla, told airline CEOs to formulate some regulatory mechanism.
On its part, a senior official of the Federation of Indian Airlines (a joint forum of several carriers) dismissed the need for a regulator. "Over time an airline develops a reputation among passengers for being good or bad. The competition means a flier can choose the airline he or she wishes to fly and falling numbers alone can force an erring player to improve," he said.
25/10/07 Saurabh Sinha/Times of India

Bombardier, Alenia fly high on boom in turboprop sales

Bombardier Inc. and Europe's Alenia Aeronautica are riding high on the back of a boom in turboprop airliner sales that has been driven by surging fuel prices and expanding air travel in Europe, the Middle East, India and Asia.
This week, Bombardier has signed orders for its 72-to-78-seat Q400 turboprop, potentially worth $1.5 billion U.S.
Industry reports say it may soon boost production at the same Toronto assembly plant it considered closing in 2004 for a lack of orders.
It's the same story for Alenia, the joint venture of Italy's Finmeccanica and EADS that builds the 50-to-70-seat turboprops in France. Orders are rolling in, output is rising and a technical upgrade is on the way. It may launch a larger version in 2015.
Aside from North America, Q400s are flying in Africa, Europe and the Asia-Pacific area. But Bombardier and Alenia are selling more turboprops in emerging markets that are taking off because of the transfer of oil wealth.
The Alenia product outsells the Q400 in some markets, especially India, but it is slower than the Q400 and its range is shorter.
24/10/07 Montreal Gazette, Canada

In-flight mags feel pinch of video

Mumbai: Do passengers still read in-flight magazines? Even if they do, the audio-visual treat on flights have largely robbed these publications of their glossy charm.
With the dawn of on-flight entertainment (IFE) systems in the country, advertisers, along with passengers are now under the spell of the audio-visual medium.
Kingfisher Airlines, Jet Airways and Air India have equipped their aircraft with IFE.
With big money involved and advertising options multiplying, the magazines might just feel the pinch.
Maneck Davar of Spenta Multimedia, which publishes Jet Wings, doesn’t believe that IFE is too much of a threat as of now.
Sources in the IFE ad sales team for Jet Airways agree with this.
25/10/07 Nirmal John/Daily News & Analysis

Wednesday, October 24, 2007

Central clearance for greenfield airports may go

New Delhi: The Government plans to do away with the mandatory approval of the Central Government for setting up greenfield airports. An inter-Ministerial Group (IMG) set up to recommend principles, guidelines and licensing conditions for greenfield airports has recommended that mandatory approval for such airports not be required except in special cases.
``If a greenfield airport is to come up within a 150 km radius of an existing airport or the proposed airport would be in a defence airfield then it would still need to be cleared by the Centre. Otherwise the promoter can approach the Ministry of Civil Aviation and the greenfield airport would be operational after the Directorate General of Civil Aviation (DGCA) gives the licence,” a senior Government official said.
At present any proposal for setting up of an airport requires to be cleared by the Union Cabinet. The draft proposals would need to be cleared by the Committee on Infrastructure and the Union Cabinet before it can be implemented.
The work connected with providing air traffic services, security, customs and immigration among others at these greenfield airports would continue to be carried out by Central agencies.
An official statement issued on Tuesday adds that State Governments wanting to set up greenfield airports can do so themselves, through any of their designated entities or through a joint venture company. The draft proposals adds that the State Government could consider granting land (concessional or otherwise), real estate development rights, airport connectivity and fiscal concessions to such an airport company. The selection of a private party is to be done through competitive bidding, the committee has said.
The policy has suggested that the preferred route for development of greenfield airports by the Airports Authority of India (AAI) be through the public-private-partnership route and be substantially financed through PPP concessions.
23/10/07 Business Line

Star Navigation secures protection in Indian market

Toronto: Star Navigation Systems Group Ltd.
today announced that the Government of India has granted a key patent, strengthening the Company's position in one of the world's largest
aviation markets, and further protecting the Company's proprietary technology.
Mr. Viraf Kapadia, Chief Executive Officer of Star Navigation said, "This
is our sixth patent award, and is a major milestone for the Company. Star's
technology has been awarded patents in the United States, Canada, the United
Kingdom, Hong Kong, Australia, and India. This latest patent solidifies our
position in the world's largest growing aviation Star Navigation Systems Group Ltd.
(www.star-navigation.com) owns the exclusive worldwide license to its
proprietary, patented In-flight Safety Monitoring System, the first system in
the world to feature in-flight data-analysis, monitoring and diagnostics with
a real-time connection between aircraft and ground. Its real-time capability
of tracking performance-trends and predicting incident-occurrence enhances
aviation safety and improves fleet management while reducing costs for the
operator.
23/10/07 Canada NewsWire (press release), Canada

Tuesday, October 23, 2007

Regional players may cast shadow on existing players

The proposed entry of at least four aviation start-ups that aim at operating in different regions of the country could further delay the break-even at existing airlines, which had made a combined loss of about $500 million (nearly Rs2,000 crore) in fiscal 2007 due to excess seat capacity and high fuel costs.
Domestic carriers say the lower tax paid on fuel by regional airlines and the likely aggressive pricing of their tickets can only spell bad news for them.
The ministry of civil aviation recently announced new rules for airlines planning to start regional operations between smaller cities or connecting towns with India’s large cities with small planes, typically turboprops or small passenger jets made by Bombardier Inc., Empresa Brasileira de Aeronautica SA or Embraer, and Sukhoi Aviation Holding Co., that can seat up to 100 passengers. The policy specifies that these airlines can operate from one metro airport in each region except in the South, where they have been allowed to fly between Chennai, Hyderabad and Bangalore.
Ten companies, including MDLR Airlines Pvt. Ltd, Star Aviation Pvt. Ltd, Emric Aviation Pvt. Ltd, King Air and Air Dravida, plan to start regional operations from various parts of the country. Four are likely to be awarded operating licences soon.
A top executive at one of these companies admitted his peers would likely offer low fares as a means to acquire market share. The fare reduction, said Muhamin Saidu, chief executive of Emric Aviation, would be “based on services offered”. He declined to elaborate.
But a senior executive at a national airline said he expected regional carriers to follow the strategy of any other entrant.
23/10/07 P.R. Sanjai/Livemint

EU-India to to strengthen cooperation in civil aviation

As a follow-up to the successful first EU-India Aviation Summit held in New Delhi in November 2006, Mr. Praful Patel, Minister for Civil Aviation of India is visiting several European institutions on 22-23 October 2007. The visit is being hosted by Mr. Jacques Barrot, Vice-President of the European Commission responsible for transport. The two sides expressed their shared aspirations driven by their respective policies of promoting safe, open and sustainable aviation relations for the benefit of industry and consumers.
Messrs. Patel and Barrot welcomed the very positive new impetus in EU-India aviation cooperation following the adoption in September 2005 of the overall EU-India "Joint Action Plan" in which civil aviation plays a key enabling role. However, both sides expressed a strong wish for taking EU-India cooperation in civil aviation to a new level by broadening and intensifying cooperation in a wide range of areas.
Progress towards the finalisation of a Horizontal Agreement as well as an agreement on future technical cooperation was welcomed by Vice President Barrot. The Horizontal Agreement will restore legal certainty to the 24 bilateral air services agreements that India has with individual EU Member States thereby creating a sound legal basis for further developing EU-India air transport connections.
A key objective of future technical assistance will be to strengthen the institutional capacity of the civil aviation regulatory authorities of India and to help ensure a safe and secure aviation environment through policy support, pilot projects and targeted training.
22/10/07 Commission Européenne (europa.eu.int)/Edubourse.com (Communiqués de presse), France

Monday, October 22, 2007

MRO segment gaining momentum

New Delhi: Aircraft maintenance, repair and overhaul (MRO) business is gaining momentum with more and more players in the sector lining up with investment proposals. Boeing has said that it would invest about $100 million to set up an MRO facility in India in cooperation with Air India and a private partner.
Boeing has already tied up with national carrier, Air India, for this venture. The name of the third partner will be formally announced by December this year. A report by Ernst & Young has stated that the aviation sector in India slated to draw an investments of more than $120 billion by 2020.
Also a number of foreign companies have been participating and have been expressing their willingness to invest in the maintenance, repair and overhaul business in India.
On the other hand, Mumbai-based low-cost airline, GoAir has gone ahead and constituted a joint venture with the Singapore-based SIA Engineering to establish an engineering facility in India.
European aircraft manufacturer, Airbus, too, has said that it is willing to set up an MRO service in the country at the earliest.
The Kingfisher Airlines-Air Deccan combine is also exploring opportunities in the MRO sector. It is looking for a joint-venture partnership with a third party, which could be a foreign company.
21/10/07 The Statesman

‘Lift night curfew, see light of day’

India has requested the International Civil Aviation Organisation (ICAO) to review night curfew restrictions imposed by some countries on the operation of airlines. In a paper presented to the ICAO, India has called for a review, arguing that the imposition of night curfew creates a mismatch in utilising infrastructure round-the-clock and hampers the growth of airlines.
“The concept of night curfew adversely affects the concept of free flow of air traffic and causes inconvenience to the travelling public. In addition, curfew at some airports during the night causes congestion at other times of the day, leading to an adverse impact on the environment,” said a senior Government official.
It has been pointed out that night curfew adds to the airspace capacity requirements during the day, thereby leading to congestion in the airspace. This, in turn, increases gaseous emissions due to increased holding time by aircraft, thereby further polluting the environment.
India has argued that with modern aircraft becoming quieter there was a need to review the existing curfew, since night curfew was resorted to by some airports because of the high levels of noise caused by aircraft with earlier designs.
22/10/07 Ashwini Phadnis/Business Line