Demand for choppers takes off

Mumbai: With the Lok Sabha elections not too far away and Assembly elections in five states lined up over the next 25 days, helicopter operators are seeing a rise in bookings.
SJS Saighal, chairman, Global Vectra Helicorp, says, “We have got bookings from political parties across the board. Three out of our 26 choppers will be used for the elections....”
A pilot says there are already 13 choppers currently flying around Bhopal — all on political rounds. Assembly elections in Madhya Pradesh are scheduled for November 25.
Chopper rentals vary between Rs 70,000 and Rs 1,70,000 per hour, says Ritesh Kakkad, founder of Airnetz Aviation. Election flying nets some of these operators 15-25% more than their usual charges.
An official in a helicopter charter firm says those who book these flights early are often middlemen as political parties try to circumvent the Election Commission’s spending caps. “Some private choppers are also lent to politicians in exchange of favours,” the official adds.
Operators point out that politicians, once aboard the aircraft, often make unreasonable demands to land at places that are out of the flight path and compromise safety. Add the dusty environs typical of election rallies in India, and the life of the chopper engine can get reduced. These, they say, are the reasons for the premium that political flying
nets operators.
12/11/08 Nirmal John/Daily News & Analysis

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Steep agent fee on air tickets from tomorrow

New Delhi: With airlines deciding not to pay travel agents commission on ticket sales, travel agencies have decided to levy a transaction fee of Rs 350 to Rs 500 on domestic tickets sold by them.
For international flights, agents will be levying Rs 2,500 per ticket for economy class; Rs 5,000 for business and Rs 10,000 for each first class ticket to all parts of the world.
"Some issues are yet to be resolved with the airlines because of which we want the move to be deferred. There must also be a remuneration arrangement between us and the airline, and not just between us and the passenger. Agents have not been provided training for the new system. And finally, the public has not been provided any education about this fees. If airlines stop commissions and agents are still not ready to collect the fee, there will be chaos from Saturday," warned TAAI president Rajinder Rai.
However, the loss-making Indian airlines are in no mood to extend the date. For the travelling public that still books tickets via agents, there could be a double whammy in store — they will have to pay a steep fee and also get caught in the crossfire between adamant airlines and unprepared agents. "There is no plan to reduce these charges," said Rai while admitting there could be a "huge turmoil" in the market.
Travel agents point out that a majority of their sale is on credit while they pay airlines within a fixed period. On their part, airlines point an accusing finger at the hefty fee structure proposed by the agents.
31/10/08 Saurabh Sinha/Times of India

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Govt approves Horizontal Aviation Agreement with EU

New Delhi: Government today said it has approved an agreement with the European Union to bring all 26 bilateral air services agreements with member nations in conformity with legal requirement.
"The new arrangement will bring all the existing bilateral air services agreements between EU member states and India in line with the European Commission law at one go, thereby obviating any threat of legal challenge," Finance Minister P Chidambaram told reporters here today.
The Union Cabinet gave an ex-post facto approval last night to the Horizontal Aviation Agreement, signed in Marseilles on September 28 during Prime Minister Manmohan Singh visit to France at the India-EU Summit, he said.
The landmark pact on civil aviation would work like an 'open skies' agreement, encouraging more airlines to offer services between the continents.
Nearly 5.7 million passengers travelled between India and the EU in 2007, with India ranking 11th in terms of passenger traffic between the EU and non-EU countries. Over the past three years, passenger traffic on this sector has grown by 75 per cent.
31/10/08 Press Trust of India

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AAI mulls harsh steps to recover airline dues

New Delhi: The Airports Authority of India (AAI) is all set to crack whip on the private and state-owned airlines which have not paid the whopping dues running into over Rs 1,000 crore.
The AAI had set October 24 deadline for the payment of the outstanding dues for all the defaulting airlines. But the non-payment by the airlines has ticked off the AAI, which offers services like landing, parking and route navigation to all the airlines in domestic and international sectors.
“Ideally the airlines must clear its dues with in 15 days and most of them breach this credit limit and it results in colossal dues. Each of the airlines has individually been contacted and told to pay but not much has been done,” the official said.
Among the list of the defaulters the state carrier National Aviation Company of India Ltd (Nacil), which runs Air India, sits right on the top. Nacil has unpaid dues running over Rs 650 crore. Of private airlines, Kingfisher Airways and Jet Airways account for around Rs 255 crore and Rs 36 crore respectively. SpiceJet, Paramount, Indigo and GoAir owe Rs 21 crore, Rs 10 crore, Rs 5 crore and Rs 7.98 respectively.
Sources said that AAI might resort to take harsh steps to recover dues from the airlines. “AAI might have to recover dues from the security deposits of the airlines, but this is no permanent solution,” said the official.
31/10/08 Yogesh Kumar/Daily News & Analysis

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ATF Customs duty may fly at half-mast

New Delhi: In yet another move to keep loss-laden airlines afloat, the government is exploring a proposal to cut the Customs duty on aviation turbine fuel (ATF) to 2.5% from the existing rate of 5%. The move is aimed at making jet fuel cheaper and help the airlines reduce their operating costs that has moved up significantly due to high fuel price.
In the wake of spiralling fuel prices during April-August period, ATF prices shot up, creating huge cost over-run for airlines. Fuel prices have since come down 21% following a drop in crude oil prices. However, even after the dip, the current prices do not augur well for airline companies. Domestic carriers had planned fleet expansion assuming fuel price at Rs 36,000 per kilolitre, but the ATF price hovers at nearly Rs 57,000 per kilolitre.
“We are not in favour of completely doing away the Customs duty as it would cause revenue loss. We are, however, agreeable to cutting down Customs duty by 50% in view of the financial crisis being faced by airlines,” a source in the finance ministry said.
The civil aviation ministry has been demanding to notify ATF in the declared goods category thereby attracting a uniform duty of 4% in lieu of sales tax, which averages around 23%. It had also urged the petroleum ministry to effect a downward revision of the base price of the aviation fuel. Of late, the demand got stronger as airlines started cutting down capacity and laying off staff to reduce losses.
31/10/08Nirbhay Kumar & Deepshikha Sikarwar/Economic Times

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Airlines may not get tax relief on fuel

New Delhi: The sharp fall in crude price might have come as a relief to airlines but could adversely affect one big relief the industry was hoping for — a uniform 4% sales tax on jet fuel, which is much lower than the existing rates.
The aviation ministry has long been requesting the finance ministry to term aviation turbine fuel (ATF) as a declared good so that a uniform sales tax of 4% is levied on it throughout the country. But highly placed government officials said with oil plummeting to a 15-month low now, giving in to this demand may “no longer be warranted”.
“In the past when oil was over $145 a barrel, airlines said they may break even the level of $70. Even if the rupee’s depreciation against the dollar is taken into account, current levels of $55-65 that could fall even further on fears of overall reduction in consumption with the slowdown don’t make a strong case for declaring ATF a declared good. States should take the lead now as a move from our end would be difficult,” said the source.
Moreover, there are legal issues in which amendments to Central VAT and its schedule would be required to do so, something that this government at the fag end of its tenure may be unlikely to do, the official added. However, the finmin may look at providing some relief from custom and excise duties.
Indian airlines are deep in red mainly on account of the fact that ATF prices in India are among the highest in the world because of high base charges and even higher taxes. The problem is compounded as states levy very high sales tax.
30/10/0 Saurabh Sinha/Times of India

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2 pilots die in air crash off Ludhiana

Ludhiana: Just a week after it was cleared for flying, after a seven-year-long grounding, state government official VIP plane, King Air C-90 Beechcraft, crashed at an abandoned industrial unit of Thapar Agro Mill near Jugiana here this morning killing both pilots.
Pilot Dalip Singh Kataria and co-pilot Manjit Singh Khokhar were the only two on board.
The plane, which had taken off from the Chandigarh airbase at 10.50 am, faced landing trouble at Sahnewal airport and crashed around 11.30 am.
According to eyewitnesses, the plane took three rounds of the Sahnewal airbase and in the fourth attempt the aircraft tilted upside down and crashed 5 km away at Jugiana village. The official of the Chandigarh airbase received the last message from the pilots at 11.25 am.
Punjab government civil aviation sources said the aircraft was not being used for some time and had been cleared for flying by the directorate general of civil aviation (DGCA) only last week after major repairs.
The eyewitnesses further said one of the pilots reportedly tried to dive from the plane before it crashed at the factory unit.
Purchased in 1978, this aircraft was for seven years at Chandigarh Hanger after it had crashed landed at the Hisar airbase in 2001.
The forensic team and the teams from the Sahnewal airbase started searching for the crucial remains that could lead them to the exact cause of the crash.
According to the Chief Minister's media advisor Harcharan Bains, the plane was on a mandatory technical check-up flight prior to a VIP trip when it seemed to stall and begin losing height and crashed.
29/10/08 Mohit Khanna and Loveleen Bains/The Tribune

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Grounded for six yrs, Punjab plane crashes on test flight

Jugiana (Ludhiana): A 26-year-old Beechcraft C-90 King plane owned by the Punjab Government crashed here on Wednesday morning killing both its occupants, the pilot and the co-pilot. The pilot saved many lives by steering the aircraft towards an abandoned industrial unit before it crash-landed.
The aircraft, which was on a test flight after remaining grounded for over six years, caught fire soon after it hit the ground.
The charred bodies of Capt Dalip Kataria and Capt Manjit Singh Khokhar were retrieved from the remains of the plane that crashed into the premises of Thapar Agro Mills located in village Jugiana some 20 km from Ludhiana. SSP R K Jaiswal said the aircraft was on a test flight and had flown from Chandigarh at about 10.50 am. “The plane crashed at about 11.30 am and the last communication that the pilot had with the ATC Sahnewal was at about 11.25 am.” It has been learnt that the pilot had been requesting permission to land at the airport and was allowed to do. However, as the plane was about to land at an airstrip it was asked to change to another air strip for which the plane had to make another circuit.
It has been learnt that former chief minister Capt Amarinder Singh had refused to use the plane saying that it was not fit for flying. However, Chief Minister Parkash Singh Badal had ordered repairs of the craft and it was being put to various tests before starting regular flights.
29/10/08 Amrita Chaudhry/Indian Express

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Badal announces grant of Rs. ten lakh each to bereaved families of pilots

Chandigarh: The Punjab government's official plane, C-90 King Air,crashed near Ludhiana this morning,killing both pilots on the spot.
According to Harcharan Bains, Media Advisor to Chief Minister Parkash Singh Badal, the bodies of the two hapless pilots would be cremated with full state honours. The Chief Minister " profoundly regretted" his inability to attend the funeral because of his participation in the 300th Guruta Gaddi functions in Huzur Sahib (Maharashtra).He has however deputed Dr.Upinderjit Kaur, Education and Civil Minister, Punjab, to represent him at the funeral.
Bains said that the Chief Minister has also announced a grant of Rs. ten lakhs to each of the bereaved families.Badal has rushed the Secretary and the Director, Civil Aviation, Vishawjeet Khanna and Gagandeep Singh Brar respectively to the crash site. The Chief Minister has also expressed "deep shock and sorrow" over the tragic demise of the pilots, Dalip. Kataria and Manjit Singh both of whom, he said, were "proud assets of the state."
Bains disclosed that the DGCA, Government of India, has constituted a two-member team to conduct an inquiry into the accident.
30/10/08 PunjabNewsline.com

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Pilot had told sister: condition of the plane so bad

Panchkula : On Diwali night, Capt Khokhar had promised daughters an outing and dinner after he returned from test flight.
It had been just a few months in the new job for Capt Manjit Khokhar, who joined the Punjab Government as a pilot after flying planes in the US for 18 long years.
And the 42-year-old was not happy flying the King Air plane, according to his sister Narender Kaur. “He was not paid his salary for the last month. He also complained that the Punjab government’s plane was not in a good shape. He would say the condition of the plane was so bad that it would certainly crash one day.”
His prediction became a reality and the plane actually crashed near Ludhiana on Wednesday morning, claiming the life of Khokhar and another pilot.
He leaves behind his two minor daughters who live with their mother in Chandigarh — Khokhar and his wife were divorced. “He called me up last night and told me that I should concentrate on my studies and that he would take us for an outing and for dinner once he returns,” said a distraught Niharika, elder of Khokhar’s two daughters. She is a student of Ydavindra Public School, Mohali. Khokhar’s former wife, too, was in a state of shock.
Narender Kaur, with whom Khokhar lived in Sector 12-A here, said he had asked her to pack a packet of dry fruits for his friends. Before leaving for the flight in the morning, he also spoke to his father who always insisted that he should marry again, she added.
Khokhar had returned to the city only on Tuesday afternoon.
30/10/08 Indian Express

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Airlines will stop paying commission to travel agents from Nov 1

Bangalore: The airline industry could see another major upheaval from November 1 when all the airlines will stop paying any commission to the 3,000 travel agents across the country and instead make the agents charge a fee from the customers for every ticket sold.
From November 1, customers will have to pay a flat fee to the travel agents for each ticket they buy which will increase the total amount they pay for a ticket. Airlines till now pay five per cent commission to the travel agents for every ticket purchased by the customers.
Confirming the decision to stop paying commission to the travel agents, a top official with National Aviation Company of India Ltd (NACIL), which runs Air India told Business Line that his company will instead implement the transaction fee model (the fee charged to the customers for every transaction/ ticket) from November 1.
The airline has already sent letters to various agents last week informing them about its decision.
Travel agents belonging to Travel Agents’ Association of India (TAAI) have already accepted the transaction fee model and had even hired Tata Consultancy Services earlier to recommend the fee structure which has now been accepted by the airlines.
However, another travel agents’ body, Travel Agents Federation of India (TAFI) has in a poll conducted among its members recently refused to accept the transaction fee model.
29/10/08 K. Giriprakash/Business Line

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SBI wants collaterals from airlines seeking credit

Bangalore: State Bank of India has insisted that airline companies provide corporate guarantees as a precondition for credit lines.
Top SBI officials said that at least two of the country’s largest private sector airline companies had approached it for credit support.
Currently, only the public sector National Aviation Company, the holding company of Air India, has credit support from the domestic banking sector.
Unlike the public sector, where there was an implicit sovereign guarantee cover and physical asset coverage, private sector had little to offer as collateral, the officials said.
Under current guidelines for borrowers, the prescribed physical asset coverage ratio is 150 per cent of the outstanding credit.
Besides, the bankers said, the airline companies were also not in a position to pledge cash flows.
This was because almost all private sector airline companies largely operate leased fleet. This makes lease financiers the asset owners.
The lessors were entirely cross-border. American International Group subsidiary International Lease Financing Corporation and Ireland-based Ansett Worldwide Aviation Services are among the largest lessors to the large domestic aviation companies – Jet Airways Ltd and Kingfisher.
In most of these lease arrangement, the lessors had the first charge on the aviation companies’ revenues through an escrow accounting mechanism.
Moreover, lease rentals during the last few months have been on the ascent on account of the hardening global interest rates and due to weakening of the rupee against the US dollar.
30/10/08 C. Shivkumar/Business Line

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Indian-American held for threatening to blow up Mumbai-New York flight

Mumbai: An Indian American was held at the Mumbai Airport after he threatened to blow up Air India Mumbai-Paris-Newark Flight A-191 here on Thursday morning, according to an airline spokesman.
The airport security was summoned and the person, an Indian resident of New Jersey was offloaded. The officials have not disclosed his identity yet.
All the passengers on board are safe and were ordered to vacate the aircraft while investigations were conducted.
The flight finally took off at 11 a.m., almost three hours behind schedule, the official said.
30/10/08 IANS/Economic Times

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CAG pulls up CSIR on aircraft programme

New Delhi: In a serious indictment of the Council of Scientific and Industrial Research, the Comptroller and Auditor General of India has questioned the way the apex agency’s Bangalore-based National Aerospace Laboratories (NAL) has gone about its indigenous aircraft development programme.
Noting that the two-seater HANSA aircraft was still being manufactured with imported components as NAL was yet to develop the sub-systems indigenously, and the project on the nine to 14-seat multi-role SARAS aircraft was suffering from time and cost over-runs, the CAG, in a report tabled in Parliament recently, said a detailed audit of the projects showed that the programme was not only not properly planned but was also mismanaged.
In the case of the SARAS project, the CAG has criticised the NAL for procuring engines with a capacity of 850 shift horsepower (SHP), even though engines with a capacity of 1,200 SHP were required as per the rules for airworthy certification by the Directorate General of Civil Aviation, and for failing to procure several critical components such as an auto-pilot system.
It noted that while the expenditure of Rs. 1.8 crore incurred on two projects to develop the auto-pilot system indigenously proved infructuous as the projects were short closed since the NAL was not in a position to provide all the necessary data, the “injudicious” procurement of engines had led to an “avoidable” expenditure of Rs.1.34 crore. In addition, 28 seats purchased at a cost of Rs.80 lakh were yet to be installed pending certification by DGCA, leading to the blockage of the fund for more than five years, it said.
On HANSA, the CAG said that even though one aircraft delivered to Andhra Pradesh Flying Club met with an accident and another flown by the Centre for Air Borne System was forced to land as the propeller got detached, the NAL did not have any documents on investigations on the mishaps conducted either by the Laboratory or the DGCA. This, it noted, indicated that it had no mechanism to monitor the performance of the aircraft supplied by it for possible improvement of design for subsequent aircraft.
Further, it pointed out that as many as seven engines valued at Rs. 64 lakh and five propellers worth Rs. 11 lakh were lying unused because the NAL had no orders for production of the aircraft beyond the 10 originally ordered. It also noted that the NAL had incurred an average manufacturing cost of Rs. 43.3 lakh per aircraft against an estimate of Rs. 5 lakh. This cost also did not count in expenditures on manpower and over-headed charges.
29/10/08 The Hindu

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Low-cost airports the next step

New Delhi: Low-cost airports are the next step for the Indian airport industry which can offer enhanced connectivity across the country and help in rationalising the costs incurred by the airlines and decongesting traffic at regular airports.
Low-cost airports can come as a relief for low-cost carriers, whose financial position has been negatively impacted by aviation fuel prices and operational costs and which currently pay the same charges as full service airlines.
“While maintaining all standards and safety norms, these airports are expected to have no baggage conveyor belts, aerobridges and buses for the passengers. These airports shall further the no-frills experience being offered by the low-cost carriers,” says a study on ‘Indian Airports,’ conducted by KPMG, an audit and advisory body.
Cities that already have an operational runway could get a new low-cost terminal. At Delhi airport, Terminal 1, operated and managed by the Delhi International Airport Limited (DIAL), is expected to be developed as an exclusive terminal for the no-frills carriers by 2010, the study says. Along with the non-operational airports, low-cost airports could be the answer to the challenges faced by the aviation sector in the country.
Taking an optimistic outlook of the aviation industry, the study noted that low-cost carriers, which opened the skies for the average Indian traveller, have underpinned the growth story of aviation. With less than five per cent of the Indian population currently travelling by air, there is a large untapped market, which could continue to fuel growth in the sector.
“Airports in India are future potential areas not just from an aviation perspective but also from a real estate point of view. While this might be a new phenomenon in India, globally, airports have embraced the concept of developing the surrounding commercial areas,” said Rajeev B. Batra, Executive Director of KPMG.
Despite the ongoing slowdown and a dip in passenger growth, the study said that once oil prices stabilised, in the long run the passenger traffic will continue to maintain its momentum.
For airports, an increase in passenger traffic implies an increase in its aeronautical revenues via the charges levied on the airlines and the potential for an increase in the non-aeronautical revenues through the retail segment.
29/10/08 Vinay Kumar/The Hindu

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Does the elephant need a superjumbo?

Mumbai: Since Airbus A380 entered service, the aviation environment has changed dramatically for the worse. Operational costs, led by fuel prices, have multiplied. World aviation is now seeing some of its toughest times yet. To make matters worse, a financial gloom has descended over the world. In India, as yet Kingfisher Airlines’ order for five of these birds remains on schedule — even though the airline has pushed back deliveries of the long-haul A340 aircraft.
Praful Patel, the union civil aviation minister, welcomed the aircraft in Hyderabad and interestingly enough, wished that Air India too will buy some.
John J Leahy, chief operating officer-customers, Airbus, was not one to miss the chance and made a sales pitch to Air India following Patel’s comment. “We think the A380 is the ideal aircraft for a market like India with a huge population,” he said.
But is it? Aviation industry experts say that for the A380 to find more takers here, the market would have to develop a strong hub, on the lines of Dubai or Singapore, where traffic from various parts would come in and get distributed. The challenge, they say, is in making sure that the 500+ seats (in a conservative two/three class configuration — in all-economy, this aircraft can fly up to 852 passengers!) can be filled
Mark Martin, an aviation analyst with consultancy firm KPMG, told DNA Money, “The success of an aircraft like the A380 would depend on the economics and the economy. In India, it is not so much the airport adaptability issues which were talked about earlier as much as the viability in being able to fill a decent number of seats, which is what should dictate the decision for airlines.”
Boeing believes that the future would be more about connecting more destinations, or in aviation parlance, point-to-point.
Airbus, on the other hand, believes in the hub and spoke model, where all traffic will flow through large hubs. Analysts say the potential depends on the way the market develops.
29/10/08 Nirmal John/Daily News & Analysis

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Biz jet makers look to build a BRIC mkt

New Delhi: The times may be tough, but not tough enough to stop big spenders. With America’s boardroom brand equity taking a knocking, its reputation in the corporate jet market has also seen a free fall. Result: major aircraft manufacturers such as Boeing, Airbus, Bell, Bombardier, Hawker Beechcraft , Cessna, Dassault, Embraer Gulfstream and Lockheed are looking at the BRIC Block (Brazil, Russia, India, China), Middle East and South East Asia.
The focus, in the business jet, has turned away from trans-Atlantic to Russia, East Europe and India. There are around 80 business jets in India currently. With pending deliveries and new orders, the number is expected to swell to over 300 by 2010. Major purchasers include the Tata Group, Reliance, ADAG, GVK, GMR, Hinduja Group, Jindal and the Ruias.
Most of the orders comprise 6-9 seater business jets in the price band of $10-30 million.
Until recently America boasted around 70% of the total sales in the business jets market. But things have changed dramatically in the past four years. Now, most of the corporate jet makers are taking a keen interest in China and India which have shown the highest potential in terms of the number of billionaires and deep-pocket corporates.
According to Merrill Lynch and Cap Gemini the population of high networth individual (HNI) with financial assets of over a $1 million grew 23% in India and 20.3% in China. The global business jet market is estimated to generate around $300 billion worth of sales in the next decade.
Take Canadian aerospace major, Bombardier, which is looking to sell 12,900 aircraft in the next 20 years. The company will be selling less than half of these in America and around 12 % in the Asia Pacific region.
Historically, markets other than America account for a minority share of the total business jets orders. However the international orders out of US have increased dramatically and now over 55% of business jet orders are from Europe, which is the most important market, followed by Asia. French luxury business jet maker, Dassault Aviation has already bagged a large order from the India. It is also working with Tata Group, GMR and Air Works to set up service centres for its growing fleet.
"....India is one of the major markets and we will be delivering 12-13 of our luxury jets in 2009, including the Falcon 900 Lx capable of flying Mumbai-London non-stop,” Dassault Aviation vice-president (sales & marketing) Alian Aubry said. The market is also changing for the big boys of the aviation mart. Airbus, one of the largest players in the global aviation industry, is also rethinking its US focus.
27/10/08 Chanchal Pal Chauhan/Economic Times

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Low airfares may attract ‘hits, not clicks’

Mumbai: Over the past week, SpiceJet, GoAir and Jet Airways have announced special fares in a bid to attract passengers. Will passengers bite?
Aviation analysts say this is nothing more than a marketing ploy to get air travel back into the consideration of travellers to whom it had once again become a luxury.
An analyst with a foreign brokerage said, “The perception that air tickets are now expensive is on the rise. Due to inflation, people were also cutting down on travel expenses. The schemes which are being offered are just enough to help airlines get back into the minds of individual travellers. At the same time, there is a realisation that airlines cannot offer tickets way below costs just to increase their market share.”
Sure enough, air travel was down a massive 38% in September, according to figures released by civil aviation authorities.
Marketing gurus say that while these schemes might help temporarily drive traffic towards the airline’s portals, there is an issue of credibility involved. The attention-grabbing Rs 99 fares do not reveal the surcharges and taxes.
They say that this would only help in complicating a situation where airlines’ trust is on the line, and lead to questions of integrity.
27/10/08 Nirmal John/DNA MONEY

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Airlines with no dues look for incentives

New Delhi: Days after oil companies gave a six-month reprieve to defaulting airlines for clearing their dues, other players - who paid on time -have now started talks with them to get some incentive. Last Wednesday, oil companies had given six months' time to clear Rs 2,926-crore dues owed mainly by Jet, Kingfisher and Air India-Indian Airlines combine NACIL.
"Since defaulting airlines have got relief, we have begun talks with oil companies to get some discount for our timely payments. Otherwise it is not fair that the ones who pay on time get nothing. At least the cost of money of getting payment should be deducted," said an airline chief.
The bailout for the big three has led to some heartburn among the other airlines. The six-month reprieve has prevented the closure of some big players as oil companies had threatened to stop supplies from this month-end if dues were not cleared.
Airport Authority of India (AAI) also has dues of Rs 653 crore and Rs 255 crore from the national carrier and Kingfisher, respectively, as on September 30, 2008. Jet is third highest on this list with a figure of Rs 36.63 crore. The combined oil and airport dues of Jet, Kingfisher and NACIL are over Rs 4,400 crore. Smaller players allege that the bailout package is being sought for the benefit of a few biggies, while the aviation ministry points out every airlines will benefit from something like cheaper jet fuel.
27/10/08 Saurabh Sinha/Times of India

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Jet seized from India's Punj Lloyd over alleged duty evasion

New Delhi: The Indian Customs Department has seized an aircraft worth Rs 720 million (US$14.5 million) owned by PUNJ LLOYD AVIATION LTD for alleged evasion of import duty. Punj Lloyd had imported the Gulfstream G-200 aircraft under Non-Schedule Operator Permit Scheme, which entitles 100 per cent duty exemption, but violated norms by using it for private purpose, leading to its seizure, sources said. The Customs Department is now all set to issue a show-cause notice for duty evasion to the tune of Rs 180 million (US$3.6 million). In the last three months, the Customs department has seized a total of 15 aircraft for alleged evasion of import duty.
27/10/08 Trading Markets, USA

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