Aviation India: NACIL Feb 2009:Get All News on Indian Aviation Industry

Showing posts with label NACIL Feb 2009. Show all posts
Showing posts with label NACIL Feb 2009. Show all posts

Saturday, February 28, 2009

AI non-stop link soon for Delhi-San Francisco

New Delhi: Starting this autumn, National Aviation Co. of India Ltd-run Air India will start flying between New Delhi and San Francisco—the longest non-stop flight between India and the US by any carrier.
The longest Air India flight operates between Mumbai and New York.
Air India is inducting seven Boeing Co.-made long-haul aircraft to its fleet of 154 this year and plans to start several other flights using Frankfurt airport as its European hub from end-March.
The date for starting the San Francisco service has not been decided but it will be only after August, Air India’s executive director Jitender Bhargava said.
New international routes planned include daily New Delhi-Frankfurt-Chicago and Ahmedabad-Mumbai-Frankfurt-Newark from the summer, besides Ahmedabad-Frankfurt and Amritsar-Frankfurt-Toronto from winter.
“Some of these flights are already available in the (reservation) system,” said a senior Air India executive, who didn’t want to be named, adding that the airline plans to shuffle its network in a way that domestic flights feed into the international flights at Indian metro airports and converge in Frankfurt to take the traffic forward, providing a wider choice of international destinations.
The increase in flights comes despite a slowdown in global travel. India’s international air traffic between April to November last year expanded 9.4% at a time when domestic passenger traffic shrank by the same rate, according to data from civil aviation ministry.
Four Boeing 777-200LR planes will join Air India’s fleet between July and September. Three more Boeing 777-200ER will join by August.
28/02/09 Tarun Shukla/Livemint

Air India flies to London as BA flies off

Air India will fill the breach when British Airways flies out of Calcutta next month, ensuring that the city stays connected to London.
The national carrier will reintroduce its Calcutta-London service, taken off the roster last October, on March 29 — the day British Airways operates its last flight on the route.
“It will be a daily service with a stopover in New Delhi,” a senior official of the airline confirmed on Friday.
The minimum introductory return fare for the Air India service will be lower than the British airline’s lowest fare on the route: Rs 25,500, inclusive of taxes, against approximately Rs 32,000.
According to officials, the hassle of a stopover in Delhi will be compensated for by the revised timings. One of the reasons for the “low load factor” that had prompted Air India to scrap the service last year was the London arrival time.
“The flight used to land at Heathrow after 9.30pm local time, by which time most flights out of London would have left. This meant that a transit passenger had to wait till the next day to catch a connecting flight,” said Anil Punjabi, the chairman (east) of the Travel Agents’ Federation of India.
28/02/09 Sanjay Mandal

Friday, February 27, 2009

Air India Extends 10 Percent Commission

Air India announced that it is extending its 10 percent commission offer to travel agents for another month, to March 31. The offer originally expired February 28, and applies to all Executive and First Class bookings to India from New York’s JFK and Newark Airports and Chicago’s O’Hare Airport. The 10 percent commission replaces Air India’s standard 4 percent commission, which is available for all other bookings. This coincides with Air India's current Companion Fare offering for Executive and First Class passengers. Travelers who purchase a roundtrip ticket to Mumbai or Delhi in either of these two classes at the regular fare can get a 50 percent discount on a second, same-class ticket for a companion. This offer cannot be combined with other offers and is good for travel on all Air India flights from New York’s JFK and Newark Airports, and Chicago’s O’Hare Airport. Tickets must be purchased by March 31 and both passengers must travel together on all flights.
Individual Executive Class travelers can also enjoy significant savings with a limited time Sale Fare of just $3,176 roundtrip from New York (Newark Airport) and Chicago to Mumbai or Delhi.
26/02/09 Mark Rogers/Travel Agent Central

Thursday, February 26, 2009

Air India staff threaten strike from Mar 4 over JV

New Delhi: Angered by the government's approval of an Air India proposal to set up joint ventures with a Singaporean firm for ground handling, employees of national carrier have threatened a long-drawn nationwide agitation to protest the move, starting March 4.
In a letter to Air India CMD Raghu Menon, the Civil Aviation Joint Action Forum (CAJAF), an umbrella body of Air India employees, warned of agitation on the issue, including a strike, saying the management had "violated" commitments given to the forum that it would be consulted on the issue of setting up of JV companies.
The agitation would begin with the employees staging a protest walkout from work on March four from 1000 hours to noon across the country, CAJAF spokesman V J Deka said here.
In their letter to the CMD, CAJAF leaders J B Kadian and George Abraham said the AI management had in December assured the employees that they would be consulted in the process, but regretted that no meeting had taken place in the past two months.
25/02/09 PTI/Economic Times

Air India Express Enlists CyberSource Online Fraud Solution

Mumbai: CyberSource Ltd., the U.K.-based subsidiary of CyberSource Corporation, today announced that its Decision Manager anti-fraud solution has been selected by Air India Express. Decision Manager, designed to help companies like Air India Express automate and safeguard its online ticketing, provides access to over 150 global validation tests to screen for fraud and determine in real time whether online transactions should be accepted, rejected, or marked for further review.
Air India Express is India's first international airline to offer budget travel. The carrier flies to 14 key international destinations including Dubai, Abu Dhabi, Singapore and Bahrain, and also operates a domestic service between major Indian cities.
"Our rapid growth dictates a robust solution that can not only identify potentially fraudulent activity but also minimizes the burden on manual review staff," said Harish Pai, finance head, Air India Express. "CyberSource's considerable experience in the Indian online environment and in the travel sector was also a factor in our selection process."
25/02/09 PRNewswire

Tuesday, February 24, 2009

Assam near-miss blame game is on

New Delhi: The blame-game over the February 11 near-miss involving Air India and Aviation Research Centre (ARC) aircraft over Jorhat in Upper Assam continues, with the Intelligence Bureau (IB) blaming the incident on "miscommunication" by air traffic control (ATC).
In a missive to the civil aviation ministry and Directorate General of Civil Aviation (DGCA) last week, an IB officer of the deputy director rank squarely put the blame on ATC, Jorhat, which is under the Indian Air Force. Sources said the IB claim is based on findings of an internal probe that checked all relevant records.
The findings will, however, have no bearing on a separate DGCA probe under way.
On February 11, AI's IC-206 carrying 43 passengers from Dibrugarh to Kolkata and ARC's IL-76 Gajraj came 300 feet of each other. But the pilot of IC-206 immediately dropped altitude and a deadly collision was averted.
Preliminary investigation revealed IL-76 had been told to fly at 19,000 feet, but it came down to 17,000 feet, forcing IC-206 to fly low to avoid collision. In aviation parlance, the incident is called breach of vertical separation limit that is 2,000 feet.
24/02/09 Yogesh Kumar/Daily News & Analysis

Cabinet approves NACIL, SATS joint venture

The Union Cabinet today approved the proposal to the National Aviation Company of India Limited (NACIL) for setting up of a Joint Venture Company with M/s. Singapore air Terminal Services (SATS) for undertaking Ground Handling / Cargo Handling activities at various airports in India. NACIL and SATS would hold 50:50 equity ratio in the Joint Venture Company. The JVC would be managed by the Board of Directors consisting of representatives from NACIL and SATS in equal proportion. The Chairman of the Board and CEO of JVC would alternate between NACIL and SATS for a fixed tenure. All profits and losses of the business would be shared by NACIL and SATS in the ratio of the equity structure. The approximate total investment in the project would be :
Bangalore- Cargo handling Rs. 99 crores, Ground Handling Rs. 73 crores
Hyderabad: Ground Handling Rs. 80 crores

National Aviation Company of India Limited (NACIL), into which the erstwhile Air India Limited and Indian Airlines Limited have amalgamated, today holds a major share of the ground handling business at Airports in India. With the introduction of independent world class handling agencies at the airports, there would be induction of modern equipment, technology and resource management tools leading to very high level of competition in the field. In order to succeed in retaining majority of the business, NACIL is required to take proactive measures to upgrade its services by induction of modern technology with special focus on customer services and quick response to customer needs.
Establishing a Joint Venture partnership with a company, which is reputed in the field of ground handling services, would be an important step towards establishing a world class handling facility. While the ramp handling remains to be a strong point of NACIL, their customer service, passenger handling and cargo handling areas will get the required boost in quality, to face the competition effectively. The JV will contribute towards improved efficiency, better resource utilization and induction of human resource at lower cost. In short, establishing a Joint Venture for Ground Handling will be a significant step to retain and increase the market share of NACIL in the years to come.
23/02/09 Press Information Bureau

Crown tells B.C. Appeal Court acquitted in Air India case should repay legal fees

Vancouver: A man acquitted in the 1985 terrorist bombing of Air India says he has assets worth $20 million - but he believes he shouldn't have to pay back millions of dollars in legal fees he owes the government.
Ripudaman Singh Malik has said he doesn't have any money to repay the $7.5 million he received to cover his legal costs for the massive Air India trial.
The trial ended in March 2005 with not-guilty verdicts for Malik and his co-accused Ajaib Singh Bagri.
Bruce McLeod, Malik's lawyer, told B.C. Appeal Court on Friday that his client has millions in assets from two properties, including a business in Vancouver and a hotel in Harrison Hot Springs, B.C.
The government froze Malik's assets in an attempt to get the money and Malik is appealing that decision.
Malik's lawyers missed a deadline for filing documents in the appeal but the judge said Friday the appeal can continue. The court is scheduled to hear the case for three days in March.
Crown lawyer Frank Potts said the fresh evidence McLeod will introduce at that hearing "is doomed to fail" because it wasn't brought up earlier.
Potts told the court that Malik says he's a millionaire when it suits him, and that he isn't when it doesn't.
He also called the assessed value of the two properties belonging to Malik and his wife "opinion evidence" that wouldn't hold up in court.
Meanwhile, Malik is suing the B.C. and federal governments for malicious prosecution, saying the charges stemming from the Air India case smeared his reputation and caused him financial loss.
Malik and his co-accused were charged in the mass murders of 331 people in two separate bombings on June 23, 1985, in what was the deadliest case of aviation terrorism before the 9-11 attacks in the United States.
Most of those killed were Canadian citizens who transferred to an Air India flight in Toronto after boarding a plane in Vancouver, where the Crown contends the bomb-laden suitcases originated.
The government paid Malik's legal bills for his 11-member defence team under an agreement that required him to repay the money after his trial, but Malik then said he couldn't afford to pay the debt.
23/02/09 Link, Canada

Monday, February 23, 2009

Air India reviews its creative business; also scouts for media agency

National carrier Air India is reviewing its creative duties, and while at it, is also scouting for a media agency. This is the first time that Air India is planning to appoint a media agency for its communication mandate. The account size could not be ascertained at the time of filing this report, but is believed to be substantial.
A senior official from Air India has confirmed the development and said that the airline already had agencies like Mudra, RK Swamy, Prem Associates, ThompsonConnect, among others, on its roster. However, now it plans to have one more agency under its umbrella, which will build a strong communication plan for Air India.
Air India Ltd is state-owned and administered as part of the National Aviation Company of India Ltd, which was created in 2007 to facilitate Air India’s merger with Indian Airlines. It is the 16th largest airline in Asia, serving 28 destinations worldwide. Air India was founded by JRD Tata in 1932 as Tata Airlines, a division of Tata Sons Ltd. (now Tata Group).
Air India’s current subsidiaries include Air India Cargo, a separate division that provides air cargo services with a dedicated fleet, and Air India Express, a low-cost airline that operates flights mainly to the Middle East. With the merger of Indian Airlines and its subsidiary, Air India Regional, into Air India, these two airlines also became subsidiaries of Air India.
23/02/09 Tasneem Limbdiwala/Exchange4media.com

Sunday, February 22, 2009

AI seeks Rs 5,000-cr loan from banks, FIs to buy 7 aircraft

Mumbai: National air-carrier Air India has floated tenders for long-term loans to raise around Rs 5,000-crore from domestic and global banking or financial institutions to fund acquisition of seven aircraft.
For the US Exim guaranteed facility, the term would be 12 years while for commercial, it would be five years, the National Aviation Company of India Limited (NACIL) tender document said.
NACIL is the holding company formed after the merger of Air India and Indian (erstwhile Indian Airlines) into a single entity.
The funds may be raised either in national or foreign currency or in a mix of both, the document said.
Air India plans to acquire these aircraft over the next eight months, with the first delivery expected around June this year.
Of the seven aircraft proposed to be acquired, three would be Boeing 777-200 (Long Range) and four Boeing 777-300 (Extended Range).
22/02/09 PTI/Economic Times

Indian air farce

Recently, the helicopter formation carrying the President of India had a narrow escape in Mumbai. The force which prides in flying fighter aircraft at speeds close to or greater than Mach 2, has given a feeling similar to the “Mach 3 turbo” that a man on terra firma is used to. The close shave that the occupants of the first helicopter and the passengers on board the Air India flight had is something to thank the Gods for.
The airline officials went to town making a hero of the pilot of the aircraft who rejected the take off when instructed by the control tower. The Air Chief Marshall insists that his helicopter pilots are among the best and they did everything right. Meanwhile, the two Air traffic controllers are “De-rostered”, which means they can’t function in the seats they were in at the time of the incident. This incident is going to be a watershed in Indian aviation. Are we going to be a force or are we going to be a farce?
A few days after the incident at Mumbai, there was a near miss over the Jorhat airspace in the Northeast. An IL-76 aircraft descended to a lower altitude triggering what is called a “Resolution Alert” on the on-board TCAS (Traffic Collision and Avoidance System). The Air India flight from Dibrugarh to Guwahati responded immediately to the TCAS commands and a collision was avoided. The IAF, promptly, came back and said that the aircraft belonged to the ARC (belonging to the Intelligence Bureau) and not the Air Force. The fault was with the Jorhat ATC, which belongs to the IAF and who gave clearance without coordinating with Dibrugarh or Guwahati Air Traffic control. A disaster was averted.
Ian Fleming, who created James Bond, gave 007 the license to kill. That freedom is acceptable in fiction. The IAF owns the sky in times of war but, one cannot grant them the same privilege during the time of peace. Their attitude, and reluctance to learn from errors of omissions and commissions, is going to create major problems for aviation in India. The incident at Mumbai is being investigated by the Director General of Civil Aviation. But, as the protocol of the Air Force keeps their personnel protected from civilian intrusion, the pilots of the helicopters will not appear before the civilian investigation board. The IAF will conduct its own investigation and give out a report. When the top man has already given his judgment that his men are in the clear, will any subordinate officer think otherwise? Can two agencies who cannot communicate find neutral ground for justice?
Modern technology has given us a wonderful safety device called TCAS. This equipment saved the mid-air collision situation near Jorhat. The Air India aircraft that was involved in the Mumbai incident had the TCAS “ON”. If the Air force helicopter too had the transponders “ON”, the Air India aircraft would have received a “TRAFFIC ALERT”. This comes both as a visual and aural warning in the cockpit. Even without the ATC controller alerting the pilots, they would have been aware of the traffic in and around the airport. The returns from the onboard computers connected with the TCAS equipment is specially designed for that. The major question is: “Why were the VVIP helicopters flying the President of India into a major airport, flying without the transponders ON?” If the transponders were ON, the Approach Control radar would have known the exact position of the aircraft, both in the vertical as well as the horizontal plane. This is a major safety and security lapse.
The helicopters were coming in from the Naval station which is located on a magnetic bearing of 178 degrees (slightly east of south to the airport). The procedure for their arrival should have been from the south up to a point which is three nautical miles (five km), head towards a point which is east of the beginning of Runway 27 which was in use, and then make the final approach on a westerly direction (271 degrees). The definition of final approach is clearly mentioned in ICAO Doc.4444 and is the reciprocal direction of the runway extending from the threshold of the runway. For the VVIP helicopters, which had asked for the “Landing position” and to which the ATC had given the “Most likely position between R and W”, the two taxiways marked “R” and “W”, the centre line would have been the reciprocal line from those intersections. Aircraft are given the parking stands, while in the air. That does not convert to landing clearance.

ICAO procedures have also clearly stated that the “Active Runway” is under the control of the Control Tower. One needs specific clearance from the control tower, to use the runway — whether for take-off, landing, taxiing or crossing. An example is the procedure in Delhi airport. When an aircraft lands on the new runway 29, the aircraft is transferred to the ground control for taxiing.
In aviation, the golden rule for safe operation is “Aviate, Navigate. Communicate and Manage”. The helicopters that operated the VVIP flight on that particular day had forgotten this golden rule. They should have flown the flight as per their flight plan. The flight plan was for three Mi 8 Helicopters. What operated were two Mi 8s and one Mi 172 (which belongs to the transport squadron and not to the VVIP squadron). The team leader had informed the Radar controller that their estimate time of arrival was 09:20 a.m. and the door opening time of 09:25AM. Protocol for VVIP flights strictly adhere to these timings.

The first helicopter came in formation up to the three mile point. There after, it appears to have deviated to the left and approached the airport in a bearing of 210 degrees (from the southwest). The aircraft did not follow the laid down procedure of approaching from the east for landing. The time was approaching 09:17 a.m.! A good three minutes ahead of the estimated time given by the team leader. This is very poor navigation considering the total distance of the flight was just 10 miles and an error of three minutes on such a miniscule flight is appalling.
“Aviate” requires that you observe what is happening around you. The direction from which the helicopter was approaching the runway would have given a clear view of the Air India airbus on the take off run. The helicopter could have stopped moving at any point in the sky. Instead, he kept approaching for landing, without contacting the control tower, without obtaining the mandatory landing clearance and without conforming to the procedures. If this is what the “Best” in the business can deliver, God help us.
The real hero of the situation was the man on duty at the control tower. After clearing the Airbus for take-off, it is but natural for the officer’s vision to follow the aircraft until it is safely airborne. He has demonstrated exemplary initiative in observing a helicopter intruding from a direction where it should never have been. The promptness with which the tower controller called for the Airbus to “Stop immediately” is something to be appreciated. Instead, our system takes an efficient officer off the line for enquiry! If this is not a farce, the English language has to be redefined. The controller called “Stop immediately, I say again Stop immediately,” twice, with a gap of nine seconds. For reasons best known, the captain rejected take off only after a gap of almost 16 seconds from the first call. It was fortunate that he did respond in time, albeit slow.
Do the powers-that-be who have been passing judgments even before the investigation is complete, realise how close the situation was to a major disaster? If the controller had not noticed the intruding aircraft and the captain had taken off, the flight path of the Airbus would have intercepted the helicopter approaching over the runway, almost in front of the terminal building.
The Mumbai incident as well the Jorhat incident have proved that there is a major deficiency in communication. The helicopters that were involved did not communicate with the control tower. The main helicopter with the President on board contacted the tower when just over the runway and landed without obtaining landing clearance. This happened a couple of minutes after the drama that took place earlier. They proceeded as though nothing had happened. This was poor management of the situation.
22/02/09 Capt. A. Ranganathan/The Hindu

Friday, February 20, 2009

Air India struggles to pay wages

New Delhi: State carrier Air India, which was overlooked in Monday’s interim Budget, finds itself in a precarious financial situation, whereby it is becoming increasingly difficult for the airline to pay wages to its staff, fulfil lease commitments and aircraft loans.
In a recent meeting of civil aviation secretary N Madhavan Nambiar with Air India officials held in Mumbai to take stock of Air India’s current health, the beleaguered state carrier had pleaded for funds. Air India admitted that vendors were putting it (Air India) on credit hold. It has become “difficult to pay wages, (fulfil) lease commitments and aircraft loans,” the airline said.
In a presentation made to the secretary, Air India requested for a soft loan from Government (Rs 2,750 crore) and an equity infusion (Rs 1,231 crore). The funds would help it “to strengthen the balance sheet and infuse confidence among institutional lenders to support the aircraft acquisition program,” it said. The proposal for equity infusion and soft loan has been awaiting the government’s nod.
Underlining the urgency of funds, the carrier said in the presentation that it was imperative to receive funds from government in February-March 2009, citing mounting losses, which show no signs of abating.
Air India is due to receive 30 aircraft next fiscal, for which it has already tied up funds to the tune of Rs 8,165.64 crore, partly from international banking consortiums. It is this expenditure which the Parliament cleared in the interim Budget on Monday. It has already received 15 aircrafts due for delivery this fiscal, payment for which is being made in a deferred manner.
The cash-strapped national carrier has been pitching for an equity infusion and a soft loan from the government, set aback by the global slowdown and an ambitious fleet acquisition plan. In the interim budget presented on Monday, hardly any relief came to the national carrier by way of government allocation of funds.
20/02/09 Smita Aggarwal/Indian Express

Luggage keeps AI fliers waiting

Mumbai Passengers aboard a Delhi-Mumbai Air India flight IC 805 had to wait for over an hour at Mumbai’s Chhatrapati Shivaji International Airport (CSIA) tonight for their baggage to arrive in the terminal building.
The flight landed at 9.15 pm. An Air India spokesperson said that the delay was due to the fact that the aircraft had been parked in a remote bay that was closer to the international terminal building.
“The aircraft landed at 9.15 pm and the first baggage was delivered between 10.10 and 10.15 pm,” said the spokesperson. “The aircraft was parked at a bay which was closer to the international terminal and that’s why it took that much time for the baggage to arrive.”
An airline official said that during peak hours, there is a lot of activity in the airport’s operational area and therefore there is also congestion, which can slow tractor-trolleys that bring passenger baggage to the terminal buildings.
20/02/09 Shashank Shekhar/Express India

Thursday, February 19, 2009

Joint probe team named to probe Mumbai chopper incident

New Delhi: As civil and military officials apparently fought over sharing of information relating to the near-miss incident involving a helicopter of the Presidential entourage in Mumbai, the government today set up a joint investigation team from both sides to investigate the serious incident.
The team, headed by Director General of Civil Aviation S N A Zaidi, would have one representative from the Airports Authority of India which supervises the civilian air traffic control and an Indian Air Force official. The team has been tasked to submit its findings within a fortnight, it was officially announced here.
The near-miss had occured on February nine when an Air India flight IC-866 had to abruptly abort take-off from the Mumbai airport as the pilot spotted an IAF helicopter, part of the Presidential entourage, landing about 300 km away on the same runway.
The Zaidi panel has been asked to determine the circumstances in which the "serious incident" took place, to identify the factors which led to it, ascertain whether the Standard Operating Procedures were followed by the concerned personnel and agencies and recommend remedial measures to prevent recurrence of such incidents, an official spokesperson said.
Besides Zaidi, the other members are AAI Executive Director Vinod Kumar Yadava and Group Capt Alok Kumar, Director (Helicopter Operations) of the IAF.
19/02/09 PTI/The Hindu

President chopper fiasco: DGCA, IAF still scrapping over probe

Mumbai: The Indian Air Force and the Directorate-General of Civil Aviation are still scrapping over the nature of probe into the February 9 incident in which an IAF chopper and an Air India aircraft missed each other by barely 300 metres at the Mumbai airport. The chopper was part of President Pratibha Patil's convoy.
The IAF on Wednesday claimed to have had its way with the DGCA; a senior IAF official claimed that the probe into the near-miss would now be conducted jointly by the IAF and the DGCA. But a DGCA official said no decision had been taken on the matter; as far as he was aware, the DGCA was the authority conducting an inquiry into the near-collision.
The two agencies have not been seeing eye to eye over a probe which, agree both officials and aviation experts, is of utmost importance in ironing out several security glitches.
An Air India aircraft, taking off from the Mumbai airport, and an IAF chopper (part of Patil's convoy) landing at the same place missed each other by less than 300 metres (or 15 seconds). Security and aviation experts said the incident spoke poorly of the coordination - or its lack - between the IAF and the airport traffic control even where one of the movements involved the nation's first citizen. The IAF has, from the start, refused to accept the independent DGCA probe and has pressed for a joint inquiry into the matter.
"A joint inquiry has been initiated, which will still be headed by the DGCA. We shall wait for the report to be out before making more statements,'' an IAF spokesperson said, adding that the joint probe was instituted on Monday and would start after the DGCA issued a gazette notification. Both the IAF and the DGCA were yet to share their independent findings with each other, officials said.
19/02/09 Chinmayi Shalya/Times of India

Wednesday, February 18, 2009

Government approves JV between NACIL and SATS

The Government yesterday gave post-facto approval to the formation of following Joint Venture Companies between the National Aviation Company of India Limited (NACIL) and M/s. Singapore Air Terminal Services (SATS) :

(i) For Cargo Handling at Bangalore International Airport Limited (BIAL), Bangalore with 50:50 shareholding.

The new Greenfield Airport at Bangalore commenced operations in 2008. Tenders were floated by BIAL for granting Service Provider Rights to professional Cargo handling entities for Build, Operate & Transfer (BOT) cargo handling facilities at the Airport. One of the terms of the tender was to create and provide cargo-handling facility of world-class standards. It was felt that the technical knowledge, experience and market standing of JV partner would enable erstwhile Air India to gain sufficient expertise in this field. Accordingly, erstwhile Air India and SATS submitted a combined bid to BIAL. The project cost is estimated to be Rs.99.10 crores. The debt-equity ratio will be 50:50 and NACIL’s equity contribution would be Rs.30 crores in the total share capital of Rs.60 crores. The balance would be borrowed from Banks and Financial Institutions. The JV is estimated to be profitable during its operation and expected to yield an IRR of 17% over a period 15-year. The profit margin is likely to be in the range of 10 to 28%.

(ii) To undertake the Ground Handling activities at Bangalore International Airport Limited (BIAL), Bangalore with 50:50 shareholding.

The erstwhile Air India (AI) had submitted its pre-qualification bid for provision of ground handling services at BIAL. Since international experience in ground handling was one of the criteria, AI decided to join hands with an international Ground Handler and submit the final bid. Thus AI submitted the ground handling bid jointly with SATS. AI shall subscribe for 50% of the shares and SATS for 50% of the shares and the same proportion of shares is required to be maintained throughout the term of agreement. This JVC would involve investment of around Rs.72.78 crores, out of which Rs.50 crores would be share capital and the balance capital would be raised from banks as commercial borrowings. As per estimates, it is expected to yield an IRR of 35% over a period of 10 years.

(iii) To undertake the Ground Handling activities at GMR Hyderabad International Airport (GHIAL), Hyderabad with 50:50 shareholding.

Greenfield Airport at Hyderabad has also come up and became operational from March, 2008. The GMR Hyderabad International Airport Limited (GHIAL) had invited selective tenders from ground handlers. In view of the ensuing merger of the erstwhile AI and IA, it was decided that they would jointly submit the tender along with a JV Partner for the Ground Handling contract at GHIAL. AI-IA decided to tie up with SATS as Joint Venture Partner. The JVC for Ground Handling Services at GHIAL would involve investment of approximately Rs.80 crores, out of which Rs.60 crores would be share capital and the balance capital would be raised from banks as commercial borrowings. The equity share holding of AI and SATS would be in the ratio of 50:50. As per estimates, it is expected to yield an IRR of approx. 41% per annum over a period of 7 years.

(iv) To undertake Ground Handling at Mumbai, Delhi and other Indian Airports excluding Bangalore, Hyderabad and Cochin with 50:50 shareholding.

NACIL as a National Carrier had the option of either undertaking the ground handling services at all metro airports under its subsidiary company or through a Joint Venture partnership company in terms new ground handling policy. After following the due process, NACIL has selected M/s. Singapore Airport Terminal Services (SATS) as JV partner for providing comprehensive ground handling services at Indian Airports. This Agreement is for all airports other than Bangalore/Hyderabad (for both these separate JVs are to be formed) and Cochin where there is a contractual agreement between the airport operator and Air India. In the proposed Joint Venture Company, both AI and SATS shall subscribe 50% of the shares each. The terms and conditions will be firmed-up after negotiations with SATS and accordingly the MOU for a particular station would be signed by the partners.
NACIL holds majority market share of the ground handling business at the Indian Airports, primarily as there is very little competition. Further, a large component of the third party ground handling contracts of NACIL are based on the mandated commercial agreements, which would cease to be in existence w.e.f. 1st January, 2010, as per the Government Policy.
18/02/09 Press Information Bureau

Laidoff cabin crew by Air India not served proper notice: Govt

New Delhi: The government today admitted that the nine airhostesses laid off in January by National Aviation Company of India Ltd (which runs Air India) for being overweight were not served proper notices before their termination.
Replying to a question in the Rajya Sabha whether proper notice was served on the employees before their termination, Civil Aviation Minister Praful Patel said,"No."
"The termination has already been effected. The action is therefore complete,"the minister added in a written reply.
Asked under which clause of service rule the action was taken, Patel said that the services of the employees were dispensed with under the relevant clause of their respective appointment letters for the post of trainee airhostess and airhostess.
Quoting the clause, Patel said," During the tenure of your services, your services are liable to be terminated if (a) if you fail to maintain normal eye vision without glasses, (b) do not maintain weight within prescribed weight limits, (c) develop air sickness.
17/02/09 Indopia.com

Low load factor may crash AI’s profit hopes

Mumbai: National carrier Air India has said it will not be able to break even at the current load factor, if fares do not move upwards. Passenger load factor has dropped by more than 25% over the past two months, a senior Air India official told ET, on the condition of anonymity on Tuesday.
The civil aviation ministry data has revealed that 33.26 lakh passengers flew last month, against 38.97 lakh in January last year, a decline of around 15%. This is worrying, given that domestic carriers are in a bad shape.
While the price of aviation turbine fuel (ATF) has fallen to July 2005 levels, ATF on Tuesday accounted for only 23% of total operating costs. When the price of crude oil was at its peak $147, ATF then accounted for 55% of an airline’s operating costs, the official added.
Over the past two quarters, other costs like parking fees, navigation charges, employees’ costs and lease rental have increased manifold. With the dollar appreciating, domestic carriers are now having to cough up a lot more.
The official said Air India has attempted all measures to increase revenue though they have been in vain. The carrier first decreased fares in January, which did not result in any increase in passenger load. When asked about the charges of cartelisation, the official said Air India has replied to the letter sent by the Directorate General of Civil Aviation (DGCA).
Today, airlines have chosen not to reduce airfares even after ATF prices have dropped by close to 4% since Monday. In Mumbai, home to the nation’s busiest airport, ATF rates are down by Rs 1,191 per kl to Rs 29,985 per kl, currently.
18/02/09 Mithun Roy/Economic Times

Tuesday, February 17, 2009

Air India convict's perjury trial adjourned

Vancouver: The much-delayed perjury trial of the only man convicted in the Air India bombings has been adjourned for another five months.
After two prior adjournments, the three-week trial of Inderjit Singh Reyat was scheduled to begin May 4 but his lawyer, Ian Donaldson, told B.C. Supreme Court Justice Mark McEwan Monday that he needs more time because of conflicts with other cases he is handling.
"I am stuck and I have no way of getting unstuck," he told the judge.
Donaldson said he's been Reyat's lawyer since he was charged with perjury and "I feel I owe it to Reyat to stay on" as his counsel.
Special prosecutor Len Doust did not oppose Donaldson's adjournment application and McEwan set the new trial date for Oct. 5.
The Duncan electrician is the only person ever found guilty in the 1985 bombing of Air India Flight 182 that killed 329 people, as well as the same-day blast at Tokyo's Narita airport that killed two baggage handlers. He allegedly lied 27 times while testifying for the Crown at the trial of two other accused, Ripudaman Singh Malik and Ajaib Singh Bagri, who were acquitted.
Reyat, 56, was arrested in England in 1988 and extradited to Canada. He has been in jail since. In May 1991, he was convicted of manslaughter and sentenced to 10 years for his part in the Narita bombing.
He was then charged in connection with the Air India bombing and pleaded guilty to manslaughter in 2003, receiving a five-year jail term. Those sentences expired in February, but he was kept in jail on the perjury charges.
16/02/09 Calgary Herald, Canada

Monday, February 16, 2009

AI to spend most on aircraft acquisition in FY'10

New Delhi: With Air India in the process of inducting aircraft, the national carrier would spend most of its over Rs 8,000 crore planned budget on funding its acquisition programme in the next financial year.
The plan expenditure for National Aviation Company of India Ltd, which owns Air India, was fixed at Rs 8,165.64 crore, up against last year's allocation of Rs 5,786.48 crore and a revised expenditure of Rs 4,136.89 crore. The airline is funding the acquisition programme through internal accruals.
Air India has been seeking from the government a hike in its equity and a soft loan to meet the growing expenditure on its expansion plans and the ongoing acquisition of 111 planes.
The Civil Aviation Ministry's outlay for 2009-10 is Rs 12,164.76 crore, of which the budgetary support is Rs 190 crore.
A provision of Rs 4 crore was made for meeting expenses on salaries and administrative infrastructure for the Airport Economic Regulatory Authority, whose chairman and members are yet to be appointed.
16/02/09 PTI/Economic Times