Air Pegasus and TruJet latest carriers to launch domestic operations in India; domestic growth fastest since 2011; IndiGo heads for 100 planes

The number of airlines operating domestic flights in the Indian market has grown from six during 2013 (Air India, GoAir, IndiGo, Jet Airways, JetLite and SpiceJet) to 11 in the last quarter of 2015. Following the launch of Air Costa and AirAsia India in 2014, and Vistara in early 2015, two more start-ups have joined the market. Air Pegasus (IATA code OP) began commercial operations in April 2015 operating with two ATR 72-500s, while TruJet (IATA code 2T) operated its first commercial flight on 12 July 2015. It too, currently operates with a fleet of two ATR 72-500s. As of October 2015, these five newest airlines in the Indian market have a combined market share of 5.2%, with AirAsia India (2.1%) leading Vistara (1.7%) and Air Costa (0.8%), with Air Pegasus and TruJet both achieving a 0.3% share of the market.

While Air Pegasus and TruJet have both hit the ground running with monthly load factors since launch of between 73% and 84%, Vistara has only once achieved a load factor in excess of 70% (in May). Since then its monthly load factors have consistently been between 60% and 63%, rising to 67% in October.

IndiGo’s share of the market has now stabilized at around the 36% mark. Earlier this year it looked likely that the LCC, which will celebrate its 10th anniversary next August, was on track to achieve a market share of 40%. The airline’s fleet will soon reach the significant milestone of 100 aircraft. Meanwhile, SpiceJet has seen its market share recover during 2015. After dropping from 20.9% in July 2014 to 9.2% in February 2015, it has gradually regained market share and as of October 2015 it now accounts for 12.8% of the domestic market.
30/11/15 anna.aero

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A half-hearted attempt

The October 2015 draft aviation policy announced by the civil aviation ministry has many redeeming features. One is the new maintenance, repair and overhaul policy that the draft proposes. If the government walks its talk, we can expect a real shift from the way this business has been conducted in India so far. We can expect many more airlines to get their aircraft serviced and repaired in the country and perhaps attract other airlines in the region to come to India for servicing too.

On ground handling - a contentious matter for a long time - there is, perhaps for the first time, a business-like approach. Airlines are free to do their own ground handling or choose from a minimum of three ground handlers. There is no upper limit to how many ground handlers there can be at an airport. There's more competition, more choice and that's certainly the best way forward.

There are some other nice details one doesn't expect from the government. Safety and security - often overlooked or usually ignored - have been given a fresh look into instead of reiterating the same old archaic norms and rules. If the government follows through on its intentions, India's skies and ground should be a lot calmer and safer than they were in the past.
30/11/15 Anjuli Bhargava/Business Standard

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India’s hopes of procuring three Boeing C-17 aircraft appear bleak

Mumbai: Marking the official end of its aircraft production in California, the last Boeing C-17 Globemaster III left the Long Beach Assembly Facility on November 29, flying over a crowd before heading to the company’s San Antonio location, where it will remain until delivery to the Qatar Emiri Air Force early in 2016.

The Indian Air Force was hoping to procure three Boeing C-17 aircraft that were cleared for purchase in August, but the prospects appear bleak as the aviation giant has only one C-17 aircraft available for sale now, according to sources

A Boeing Defense, Space & Security representative confirmed to Business Line that there was one unsold aircraft with the company at its San Antonio location, and that all the remaining C-17s had been taken up by other customers.

In addition to the C-17s it built for the US Air Force, the company has delivered over three dozen aircraft to Australia, Canada, India, Kuwait, Qatar, UAE, the UK and the NATO Strategic Airlift Capability.

India’s Ministry of Defence had signed a $4.7-billion agreement with the US government in June 2011 to acquire 10 Boeing C-17 Globemaster III airlifters. The sale, approved by the US Congress in May 2010, had established India as the C-17’s largest international customer.
30/11/15 Amrita Nair-Ghaswalla/Business Line

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Andal-Delhi flight from December

DURGAPUR: For residents of Durgapur, Asansol, Raniganj and Dhanbad, connectivity will take a whole new meaning with direct Airbus flights to Delhi and Kolkata.Till now, only an ATR aircraft operated between Kolkata and Andal.

The new flight, using an Airbus A319 aircraft, will make its maiden flight to Andal from Kolkata on December 7 and fly onward to Delhi. The return flight will first halt at Andal and then reach Kolkata. The flight, with a capacity of 125 passengers, will operate three times a week.

"We are on the cusp of creating aviation history . The connection to Delhi has been a long-cherished dream of residents of this industrial ner ve centre," said airport promoter Bengal Aerotropolis Project Ltd director Partha Ghosh. The flight to Delhi from Andal will take 2 hours and 15 minutes, reducing travel time by at least an hour and a half.

Rajendra Prosad Khaitan, president of South Bengal Chamber of Commerce & Industries, is delighted. "We have been waiting for this flight for years. I am really glad it is finally taking off," he said. The flight will meet a longstanding need of the residents in the Asansol-Durgapur belt. Durgapur city is home to some of the largest industrial units in the state: Durgapur Steel Plant, an integrated steel plant of SAIL; Alloy Steels Plant of SAIL and CMERI, a CSIR laboratory. The half-hour connection to Kolkata will also benefit students and public and private sector employees working in the Durgapur-Asansol planning area, besides boosting the industrialization needs of the region.
30/11/15 Debajyoti Chakraborty/The Times Of India

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State pushes for abolition of ‘5/20’

The State has sought scrapping of the 5/20 rule for commencing the flight operations of Air Kerala and extension of the open sky policy to all international airports based on their infrastructure facilities and flight-handling capacity.

In its suggestions to the draft Civil Aviation Policy unveiled by the Civil Aviation Ministry for discussion with stakeholders, Kerala has pointed out that limiting the open sky policy to major international airports is discriminative.

Considering the sustainability of the existing government and public-private-partnership airports, the State has suggested that no future airports be permitted within 150 km radius of these airports.

A three-member committee headed by Chief Secretary Jiji Thomson has been set up to study the draft policy and submit suggestions. Additional Chief Secretary, Aviation, V.J. Kurian and Managing Director of Kannur International Airport Limited (KIAL) G. Chandramouli are the other members. The committee is to submit the suggestions soon. The demand for abolishing the 5/20 rule is seen as the last attempt by the State to commence flight operations of Air Kerala, the airline start-up conceived by the State to provide Non-Resident Keralites (NoRKs) better connectivity to West Asia at affordable fares. The State has been knocking at the doors of the Ministry to overcome this hurdle.
30/11/15 S.Anil Radhakrishnan/The Hindu

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IAF chief eyes Rafale deal by the end of year

The deal between India and France for 36 Rafale combat jets could happen before the end of the year, the Indian Air Force (IAF) chief said yesterday.
"I hope it will happen by the yearend," Air Chief Marshal Arup Raha said when asked when the deal for the jets, in fly-away condition, was expected to be inked.
"We expect it to happen quickly," he added.
The deal for the jets, manufactured by Dassault Aviation, was announced during Prime Minister Narendra Modi's visit to Paris in April, but on the French side there is some frustration at the long-winded nature of the negotiations.
The IAF, which badly needs to replace its ageing fleet of Soviet MiG aircraft, was looking forward to the new planes, but the offsets clause that requires 50% of the deal estimated at 8mn to be pumped back to the Indian defence industry, is believed to be a stumbling block, as also the pricing. While India and France are still involved in the sticky negotiations, Egypt welcomed three Rafale jets into the country in July - five months after inking a deal for 24 planes.
French Defence Minister Jean-Yves Le Drian visited Cairo a few days after France delivered the jets. He was to visit India on August 31 during which the deal was expected to be inked.
However, he flew straight on to Europe after it became known that the negotiations were not likely to be concluded soon. The Indian defence ministry had, at the time, refused to confirm his visit.
According to French ambassador Francois Richier, the defence minister had to fly to Europe to attend an EU defence ministers meeting.
The progress in negotiations was reviewed by the Defence Acquisition Council (DAC), the top acquisition body of the defence ministry, chaired by Minister Manohar Parrikar on September 1. Sources said the progress in talks between the two sides was "satisfactory".
"The negotiations are on the right track. The DAC was briefed about it, and they gave the ahead," an official said, not wanting to be identified.
29/11/15 Menafn-Gulf Times

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Govt grants approval power to DGCA for acquisition of aircraft

The Ministry of Civil Aviation has decided to delegate the power to grant initial NOC/ in-principle approval for import or acquisition of aircrafts to the Directorate General of Civil Aviation (DGCA). As per the existing procedure, scheduled operators and regional scheduled operators have to seek such approval from the Ministry of Civil Aviation. The delegation of power is being done in order to simplify procedures as compliance of various Civil Aviation Requirements (CAR) are regulated by the DGCA.

The Ministry had requested Director General of Foreign Trade and Reserve Bank of India to amend their existing notification and Master Circular respectively in this regard. Accordingly, DGFT vide notification no. 24/2015-2020 dated 9th October, 2015 and Reserve Bank of India vide its Master Circular no. 30 dated 26th November, 2015 have carried out the requisite amendments. DGCA has now been requested to make necessary amendment in the related CAR/Rules in accordance with it.
30/11/15 T3 News Network

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Safety and security standards of Indian aviation get thumbs up from United Nations body

India's aviation safety and security security has got a thumps up from the UN oversight body International Civil Aviation Organisation (ICAO).

In a recently done security audit by the ICAO, the Bureau of Civil Aviation Security, (BCAS) fully met the target of implementation of security norms thus steering clear from the threat of a possible downgrading of India's safety ranking.

ICAO carries out periodic audits of member countries and assesses their implementation of norms of security and safety measures in handling all areas of civil aviation security and safety including full ground handling at the airports, aerodromes, including the track record of companies involved, airlines and flight schedules and paths managed by the air traffic control (ATC) etc.

The audit done by ICAO in October this year certified that effective implementation of aviation security in India stands at respectable score of 99.23% while India's compliance of ICAO security requirements stands at 99.59%.

The ICAO team conducted audit of Indian civil aviation security and security at Delhi airport in October across nine audit areas including legislative and regulatory architecture, performance of security personnel, security training, catering services and ground handling etc.
29/11/15 Daily News & Analysis

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New Aviation Rules to Add Wings to Private Airlines

New Delhi The Ministry of Civil Aviation, in an attempt to simplify the process of buying aircraft, has decided to hand over powers to the Directorate General of Civil Aviation (DGCA) to grant initial approval to private airlines for import or acquisition of aircraft
“The change of power is being made since DGCA was looking after the compliance of the Civil Aviation Requirements (CAR) regulated by the Director General of Civil Aviation (DGCA),” said an official. “The current process was cumbersome as the requests for aircraft acquisitions were being handled by the ministry while DGCA was looking after CAR. The clearance was also time consuming as both agencies were involved,” he said. The Director General of Foreign Trade and Reserve Bank of India have been asked to amend the existing process while DGCA has been requested to make the necessary amendments to the CAR rules.
This decision is seen as a welcome move for the domestic carriers who are looking forward to expand their fleet in the fast growing aviation sector here. According to International Air Transport Association (IATA), India is projected to be the world’s third-largest aviation market by 2029.
29/11/15 Samiran Sarangi/New Indian Express

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‘India has capability to innovate in aerospace’

Bengaluru: India has acquired core strength of system design and system integration in the past three decades, said Ajay Shankar, chairman of the expert committee on regulatory approvals, Department of Industrial Policy and Promotion (DIPP).

Addressing a seminar on ‘Indigenous technology base for growth of aerospace ecosystem” organised by Hindustan Aeronautics Limited (HAL), Shankar said, “We have the ability to innovate things and we could achieve enormous success.”

Complimenting HAL on completing 75 years, he said the nation should be proud of its contributions.

As part of its anniversary celebrations, HAL organised the seminar and brought together various stakeholders in aerospace on a common platform.
29/11/15 Business Line

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Punjab: Few takers for insurance of ‘VIP’ helicopter

Chandigarh: Insurance for the VIP Bell 429 helicopter that ferries Punjab Chief Minister Parkash Singh Badal, Deputy Chief Minister Sukhbir Badal and other VVIPs has once again run into rough weather.
Ever since the state government purchased the US-made helicopter in 2012 at a cost of Rs 36.62 crore, the Punjab civil aviation department has been struggling every year with insurance bids and the valuation. It’s no different this year.
On November 20, the department of civil aviation had invited quotations for the insurance of twin engine seven-seater (including two seats for crew) helicopter a second time, days after it received only two bids, one by United India Insurance Company and other by HDFC ERGO General Insurance, on November 16, in response to its first advertisement for quotations on October 30.
29/11/15 Navjeevan Gopal/Indian Express

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'Extend proposed regional connectivity benefits to choppers'

NEW DELHI: The proposal to reduce VAT on jet fuel to 1 per cent under the draft civil aviation policy should be extended to helicopters providing regional connectivity, according to non-profit group RWSI.

Rotary Wing Society of India (RWSI) works towards developing civil helicopter industry. As per its website, 90 per cent of helicopter operators are its members.

Under the revised draft policy, the Civil Aviation Ministry has proposed a slew of measures, including reduction of Value Added Tax (VAT) on jet fuel to 1 per cent or less, to boost regional air connectivity.

"The helicopters engaged in regional connectivity/ religious pilgrimage etc may also be included for 1 per cent VAT on ATF," the grouping said in its recent submission made to the ministry on the policy.

As per the policy, Regional Connectivity Scheme would be made operational only in those states which reduce VAT on ATF (Aviation Turbine Fuel) at airports to 1 per cent or less.

Besides, RWSI has sought inclusion of "heliports/helipads" under the plan to revive unserved and under-served aerodromes and airstrips.
29/11/15 PTI/The Economic Times

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Adampur airbase gets nod for commercial use

The Union Government has given a formal approval to use the Adampur airbase for civil purpose. Disclosing this, Union Minister of State for Social Justice Vijay Sampla said following the clearance from the Union Defence Ministry, the Civil Aviation Ministry had started preparing a techno-feasibility report to take up the expansion work at the airbase.
Sampla, who was elected from Hoshiarpur Lok Sabha constituency, said Chief Minister Parkash Singh Badal He said the Air Force authorities had already given their approval for the use of their airbase for the civil purpose. However, there was a need for its expansion and some buildings needed to be constructed for civil purpose, he said. “I had a meeting with Chief Minister Parkash Singh Badal and he immediately directed the authorities concerned to do the needful,” said Sampla. Hoshiarpur and Jalandhar form the NRI belt. For NRIs, Adampur is the most suitable place to fly in and fly out from the country.
28/11/15 Sarbjit Dhaliwal/The Tribune

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Role Of Greenfield Airports In Greening Indian Economy – Analysis

Greenfield airports play a significant role in accelerating the urbanization of a country, although at the same time the development of greenfield airports has some adverse environmental impacts such as use of agricultural land, deforestation, cutting of hills, diversion of rivers and erosion of the sea shores, etc. All these adverse environmental impact have significant ramifications on the environment.

An increase in air-traffic demand in existing airports, increase in level of urbanization and growth of small towns into bigger cities has led to increased pollution and as a result necessitated the need for the development of greenfield airports. The impact of the greenfield airports and urbanization has significant impact on economic growth. The Government of India has decided that during the next 20 years the number of airports will be increased from existing 133 to 500 airports and among them 367 airports will be greenfield airports. Searching sites for a greenfield airport involve a number of activities, such as the identification of the site, obstruction clearance within 30 nautical miles, etc. High rising building, hills, HT lines, forest, industrial chimneys, railway tracks, roads/highways etc., should not create an obstruction for landing and takeoff. Besides, factors such as the wind rose diagram, rainfall, temperature, wind speed, the elevation above mean sea level of the proposed site are also analyzed. In addition to the above constraints the site should have adequate traffic potential and be economically viable.
29/11/15 Dr.Narendra Nath Dalei & Prof D.P.Singh/Eurasia Review

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Govt simplifies importing aircraft for airlines

New Delhi: In a move to simplify doing business in India, the aviation ministry has decided to delegate the power to grant initial NOC/ In-principle approval for import or acquisition of aircrafts to the Directorate General of Civil Aviation (DGCA).

As per the existing procedure, Scheduled Operators and Regional Scheduled Operators have to seek such approval from the ministry. The delegation of power is being done in order to simplify procedures as compliance of various Civil Aviation Requirements (CAR) are regulated by the DGCA.

"The ministry has requested Director General of Foreign Trade and Reserve Bank of India to amend their existing notification and Master Circular respectively in this regard. Accordingly, DGFT vide notification no. 24/2015-2020 dated October 9, 2015 and Reserve Bank of India vide its Master Circular no. 30 dated November 26, 2015, have carried out the requisite amendments. DGCA has now been requested to make necessary amendment in the related CAR/Rules in accordance with it," the ministry said in a statement.
28/11/15 Saurabh Sinha/Times of India

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More Emirates flights into India to boost economy but hurt local airlines

Mumbai: Expanding flying rights for UAE airlines into India could help to boost the subcontinent’s economy, but the move would come at the expense of the ailing state carrier Air India, analysts say.

A report by India’s National Council of Applied Economic Research (NCAER), released on Thursday, highlighted that Emirates has an economic impact of $848.6 million on India’s economy, and that with a greater allocation of seats the airline would generate further jobs, tourists and foreign exchange earnings.

This comes as Arabian Gulf airlines face pressure in Europe and the United States as their competitors in those markets try to get governments to restrict their market access.

“It is only right that the Indian government facilitate Emirates’ growth in the country, which would not only boost direct employment but also expand the GDP contribution for the country as well,” said Saj Ahmad, the chief analyst at StrategicAero Research.

“In fact, it should apply to all UAE airlines. Carriers like flydubai have been hampered in their growth in India because the government is reluctant to offer up additional capacity, when its own Indian-based airlines fail to fill the void.”

He said that “Emirates and other GCC airlines won’t face the same regulatory pressure as seen in the US and Europe” because those are “mature” markets compared to India’s “highly immature aviation market”.
28/11/15 Rebecca Bundhun/The National

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Civil aviation security meets ICAO standards: Government

New Delhi: The Bureau of Civil Aviation Security has complied with the norms set out by the global oversight body ICAO, the government said today.

BCAS, which is responsible for civil aviation security, lays down the standards for airport operators and airlines, among others.

The Civil Aviation Ministry today said BCAS has "fully met the target of implementation of security norms prescribed by the UN oversight body, ICAO".

A team from International Civil Aviation Organisation (ICAO) recently conducted audit of Indian civil aviation security and security at Delhi airport in October, an official release said.
The audit looked at nine areas, including legislative and regulatory architecture, performance of security personnel and security training.
28/11/15 PTI/Economic Times

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'Need more aerospace resources to push India on global map'

Bengaluru: A top Defence Research and Development Organisation (DRDO)official today stressed the need to establish aerospace facilities that will place India on the global arena.

"Although we are engineering many technologies for bigger platforms, we need to establish aerospace facilities that will place India on the global arena," DRDO Director General (Aeronautical Systems) K Tamilmani said.
Tamilmani was speaking at the national seminar on "Indigenous Technology Base for Growth of Aerospace Ecosystem", organised by Hindustan Aeronautics Limited as part of its 75-year celebrations here, according to an HAL release.

HAL CMD T Suvarna Raju said : "It is our constant endeavour to lead the sector in providing collaborative support to the aerospace community and creating an ecosystem for aviation technology."
28/11/15 PTI/Business Standard

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IAF Chief hopeful of Rafale deal by year end

Hasimara: Indian Air Force chief Air Chief Marshal Arup Raha on Saturday hoped the deal between India and France for Rafale fighter jets would be signed before end of this year.
Asked when was the deal for 36 Rafale jets in fly-away condition expected to be inked, the Indian Air Force chief told IANS: "I hope it will happen by the year end."
"We expect it to happen quickly," he said.
Hasimara, around 15 km away from India-Bhutan border, has a crucial air base of India in the eastern sector. It has two squadrons of Mig 27s, which are likely to be phased out in the next few years.
According to sources, at least one of the Rafale squadrons is expected to be based here.
At an interaction with journalists earlier, Raha said that Rafale was one of the replacements for the Migs being phased out.
28/11/15 IANS/Statesman

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India to be third largest aviation market by 2026: study

Mumbai: India will displace the United Kingdom as the third-largest market by 2026 by passenger traffic, a new study said.

India will also be the third fastest aviation market in terms of new passenger addition, behind only China and US, the report by The International Air Transport Association (IATA) said. India will have 275 million new passengers for a total of 378 million till 2034. China is expected to have 758 million new passengers for a total of 1.196 billion, while the US will have 523 million new passengers for a total of 1.156 billion.

In terms of routes, Asian, South American and African destinations will see the fastest growth, reflecting economic and demographic growth in those markets, the report said. Indonesia-East Timor will be the fastest growing route, at 13.9 per cent, followed by India-Hong Kong at 10.4 per cent.

“The demand for air transport continues to grow. There is much work to be done to prepare for the 7 billion passengers expected to take the skies in 2034,” said Tony Tyler, IATA’s Director General and CEO.
27/11/15 Business Line

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