India passenger growth number 6 times higher than the US
The gap between air passenger growth in India and other countries widen further with the country registering a growth of 27.4% during the month of March, which is six times more than the second highest growth market, shows International Air Transport Association (IATA) data. The second highest growth in passenger number was recorded by the US, which grew by 4.1% during the month of March. However, US is the largest air passenger market in the world with number of fliers exceeds the total number of air passengers. In contrast, only 2% of the country’s population fly in India. The reason behind the growth of the Indian market has primarily been attributed to lower fuel prices, which has led to reduction in fares and rise in passenger number. IATA also credits increase in capacity by airlines in India as one of the reasons for the growth in number of flying passengers. “Growth in the India domestic market is being propelled by the comparatively strong economic backdrop as well as sizeable increases in services (average flight frequencies within India are scheduled to increase by 11.5% year-on-year in 2016). India’s annual domestic RPK growth rate has now been in double digits for nineteen consecutive months,” IATA said in its assessment. Joe Theismann Womens Jersey
Airlines have hiked ticket cancellation charges, says Mahesh Sharma
An analysis has showed that there has been an increase in cancellation charges for air tickets, Union Minister Mahesh Sharma said today while emphasising that airfares are not regulated by the government. In a written reply to Lok Sabha, he said cancellation charges are not fixed and varies from Rs 1,500 to 100 per cent fare of the ticket depending upon the class, price level and time before departure. “Analysis on the increase of the cancellation charge was carried out and it was found that there was increase in cancellation charges. Cancellation charges are not fixed,” Sharma said. The Minister of State for Civil Aviation was responding to a query on whether the ministry has taken note of steep hike in cancellation charges by airlines. However, he did not provide details on whether aviation regulator DGCA has taken any action on the matter. “Airfares are not regulated by the government. With the repeal of Air Corporation Act in March 1994, the provision of fare approval was dispensed with by the government, including charges for cancellation,” Sharma said. In recent times, many local carriers have increased the charges for cancellation of air tickets. Last month, taking note of domestic airlines increasing ticket cancellation fees by a significant amount, aviation regulator DGCA last month sought an “explanation” from the carriers on the rationale for such a steep hike. Jon Bostic Jersey
DGCA circular likely to affect pilot training on hold till September
A Directorate General of Civil Aviation (DGCA) circular which would have severely crippled the expansion plans of airlines that send their pilots abroad for training was kept in abeyance at the eleventh hour after affected carriers raised an alarm with the director general and alleged conflict of interest. The controversial circular, which was to come into force on Saturday , was temporarily held back by DGCA on Friday evening. By then, however, certain airlines, anticipating its implementation, had cancelled the training slots they had booked for pilots at centres abroad for the months of May and June.With no new slots available at the centres for the next 7-8 weeks, the training schedules of at least 60 pilots from six carriers have been hit. Currently, Indian domestic passenger traffic growth is at a global high of 21%. The number one problem facing the Indian airline industry today is pilot shortage, as an average of 4-5 passenger aircraft are imported each month, which means a demand for 40-50 trained co-pilots and commanders every 30 days. It was in such a scenario that on February 1, the DGCA chief flight operations inspector (CFOI), Capt Ajay Singh, issued a circular which, among other things, made it mandatory for overseas pilot training facilities to be inspected and certified by DGCA flight operations inspectors for their training to be recognised in India. Currently, these facilities, being located in International Civil Aviation Organisation member countries like the UK, US, UAE, Singapore etc, are inspected by their own aviation regulators and the DGCA recognises their certification. The circular would have hit all Indian carriers other than Jet Airways and Air India, as these two have their own in house pilot training facilities with aircraft simulators etc.The rest, like IndiGo, SpiceJet, Vistara, Air Asia, Go Air, Blue Dart, Air Costa, TruJet, and Quick Jet Cargo send all their pilots abroad to train. “The circular in effect says India cannot trust the certifications done by the aviation regulators of the US, the UK, Singapore, Europe etc,” said an airline official, requesting anonymity . After the circular was issued, the airlines con cerned started doing rounds to the DGCA offices to get inspectors to fly to these countries to certify the simulators.”But in the place of about a dozen simulators, only a couple of simulators were certified by the DGCA till April end. So airlines cancelled the training slots they had in the rest of the simulators as the circular was to be enforced from April 30,” said a source. The slow pace of inspection alarmed the carriers, which took the matter to the director general. A day before the circular was to come into effect, on order from the director general, the circular was put on hold till September. “Had the director general not temporarily revoked this circular, these carriers would have suffered huge losses as the aircraft would have come in, but pilots could not have been trained to fly them,” an official said. Every month, over 60 candidates are sent abroad by Indian carriers to train as copilots, commanders, instructors, examiners etc. The director general was not available for comment. Capt Singh, when contacted, said, “This is a circular issued with the approval of the DG.” Another contentious condition imposed by the circular was that ground training and exams should be carried out in India, though ground and simulator training go hand-in-hand. “Imagine the trouble we would have gone through with split training,” said an airline official requesting anonymity. Ted Ginn Jr Womens Jersey
Benefit to 2 airlines leads to conflict of interest claims
The Directorate General of Civil Aviation (DGCA) circular, put on hold on account of a few contrroversial provisions, primarily evoked criticism because of the conflict of interest involved. The circular was issued by Captain Ajay Singh in his capacity as DGCA’s chief flight operations inspector, and put several stumbling blocks before airlines like IndiGo, Vistara, AirAsia, SpiceJet, GoAir, TruJet etc which send their pilots abroad for training..But it would not have affected two carriers, Jet Airways and Air India, as both these airlines have their own training facilities in India where they train their pilots. The circular sparked a controversy as Captain Singh was employed with Jet Airways from 1998 to 2014, after which he joined the DGCA on contract. As is the case with all DGCA flight operations inspectors (FOI) who have come from airlines, once their DGCA contract expires, Capt Singh too will most likely go back to Jet Airways. Other than this, currently , like the other FOIs, he only operates flights occasionally for his airline so as to keep his licence current, a practice sanctioned by the DGCA. “We do have ground to suspect that Capt Singh might have issued the circular to stifle Jet’s rivals,” said an airline official, who had taken the matter up with the director general. “Also, why have the 129 Indian aircraft charter companies, most of whom also send their pilots abroad for training, not been included in the circular?” the official asked Capt Singh, when contacted, said, “This is a circular issued with the approval of the DG.” Responding to a questionnaire sent by TOI, Jet Airways said Capt Singh was not associated with them currently. When asked if it was likely that he would join Jet after his tenure with the DGCA expired, the airline replied in the affirma tive. The airline also confirmed that Capt Singh operated flights for Jet Airways occasionally to keep his licence current. The circular has its plus points, though. For one, it would keep an eye on Commercial Pilot Licence holders who self-fund their A320 or Boeing 737 training programmes so as to better their chances of getting an airline job. “They might cut costs and go to countries where the regulators are lax and training shoddy . Such a circular would check such practices,” said a source. Indian carriers, on the other hand, send their pilots to simulator training centres at Dubai, the UK, the US, and Singapore, among others, all of which follow a training programme certified by the aviation regulators of these countries. The case has exposed the vulnerability of the DGCA, whose top brass consists of government officials who do not possess an indepth knowledge of aircraft and flying.The regulator then is forced to rely on airlines to provide it with experienced pilots. Wendell Smallwood Authentic Jersey
Coastal corridor can unify India’s domestic market: ADB
India’s first coastal economic corridor can help unify the country’s domestic market, integrate its economy with Asia’s global value chains, and support the Make in India initiative to spur manufacturing, a new study by the Asian Development Bank (ADB) showed. Spanning more than 800 km of India’s eastern coastline, the Vizag-Chennai Industrial Corridor (VCIC) is part of the country’s east coast economic corridor. The NITI Aayog has advocated building coastal economic zones to boost trade and economic growth. NITI Aayog vice chairman Arvind Panagariya has said India should look at creating large, export oriented firms and coastal economic zones to garner a bigger share of global trade. The new industrial corridor is expected to spur growth by augmenting investment in world-class transport networks, infrastructure, and industrial/urban clusters that are supported by a robust institutional framework and a competitive business environment, the report titled ‘Scaling New Heights’ said. “By linking areas that are lagging in development with dynamic industrial and urban clusters, VCIC will create employment opportunities to alleviate poverty and reduce inequality. As a coastal corridor, VCIC can provide multiple access points to global gateways,” the report said. “Greater connectivity and economic integration between South Asia and rest of Asia is likely to contribute significantly to development and foster regional cooperation as well. Mike Wagner Authentic Jersey
CCEA approves one highway project each in Himachal Pradesh and UP
The Cabinet Committee on Economic Affairs (CCEA) has approved four-laning of Shimla bypass (Kaithlighat to Shimla section) on NH-22 in Himachal Pradesh and four-laning of the Lucknow-Sultanpur section on National Highway-56 in Uttar Pradesh. The road project in Himachal Pradesh work will be under the National Highways Development Project (NHDP) Phase-III and is approved in hybrid annuity mode, said an official statement. The project is estimated to cost Rs.1,583.18 crore and covers 28 km of road length. “Project seeks to expedite improvement of infrastructure in HP and reduce time and cost of travel on Kaithlighat to Shimla section on NH-22,” said the Prime Minister’s Office (PMO) in a series of tweets. “Development of this stretch will also help in uplifting socio-economic condition of the concerned regions and increase employment potential,” posted the PMO in another tweet. The other road project — four-laning of Lucknow-Sultanpur section on National Highway-56 — will be under the National Highways Development Project (NHDP) Phase-IV and is also approved in hybrid annuity mode, said the official statement after the CCEA meeting on Wednesday. The cost is estimated to be Rs.2,844.72 crore including cost of land acquisition, resettlement and rehabilitation and other pre-construction activities. The total length of the road will be approximately 128 km. “This project will boost infrastructure in UP and reduce time and cost of travel for traffic plying on the Lucknow-Sultanpur section on NH-56,” said the PMO in another tweet. Josh Doctson Womens Jersey
Government to build 1,000 km of expressways for Rs 16,680 crore
To ensure quicker connectivity, the government plans to build 1,000 km of expressways at an investment of Rs 16,680 crore under its NHDP programme, which include the Vadodara-Mumbai project. “The central government has approved a plan for constructing 1,000 km of expressways under the National Highways Development Project (NHDP) phase VI at a cost of Rs 16,680 crore on design, build, finance, operate and transfer (DBFOT) basis,” Minister of State for Road Transport and Highways Pon Radhakrishnan told the Lok Sabha in a written reply. The main criterion for the selection of expressway corridors is traffic volume, with the government approving the high-density corridor i.e. Vadodara-Mumbai (400 km) for feasibility study, he said. It was also decided that the remaining 600 km will be selected out of the routes identified on the basis of traffic volume. The high density corridors approved under NHDP phase VI are Vadodara-Mumbai stretch (400 km) in Gujarat and Maharashtra, Delhi-Meerut (66 km) on NH 58 in Delhi/UP and Bengaluru-Chennai (334 km) on NH 4 in Karnataka-Tamil Nadu, the minister said. The remaining projects include “Delhi-Jaipur (261 km) on NH 8 in Delhi-Rajasthan, Delhi-Chandigarh (249 km) on NH 1 and NH 22 (now changed to Delhi-Ludhiana-Amritsar-Katra expressway) in Delhi/Punjab/J&K, Kolkata-Dhanbad (277 km) on NH 2 in West Bengal/Jharkhand and Delhi-Agra (200 km) on NH 2 in Delhi/UP,” he added. Out of 66-km length of Delhi-Meerut expressway, 30.63 km length has already been awarded in two packages and contract agreement is executed on March 4, 2016. Radhakrishnan said, “In addition to the above, the government has approved taking up one more expressway, namely eastern peripheral expressway for a length of 135 km in six packages. The construction… has started effective September 14, 2015, with construction period of 30 months.” The progress of these expressways is being monitored closely by the ministry and NHAI has been asked for time-bound construction. Adam Foote Jersey
Two more markdowns upset Flipkart’s applecart
In what may be suggestive of a plummeting investor interest in India’s start-up segment, two mutual fund investors have marked down valuations of their investments in Flipkart. The markdowns by Fidelity Rutland Square Trust II and Valic Co present another problem to the ecommerce giant which has been dogged with similar markdowns in the recent past. According to filings with the US Securities and Exchange Commission, Fidelity Rutland Square Trust II — the mutual fund managed by Fidelity Investments — has lowered the value of Flipkart shares it owns by almost 40 percent to USD 82 apiece as of February 29, 2016, from USD 135.8 in August 2015. Valic marked down the value of its investment in Flipkart by 29 percent to USD 98.19 a share from USD 139 apiece. The latest mark-downs value India’s largest ecommerce firm at USD 9 billion and USD 10 billion, respectively. This is the second consecutive markdown from both the mutual funds. Fidelity and Valic had marked down their holdings in the ecommerce giant by 24 percent and 12 percent, respectively, in the previous quarter. Flipkart suffered a big blow earlier in February when Morgan Stanley, another mutual fund investor in the e-tailer, slashed the value of its holding by 27 percent to USD 11 billion from USD 15.2 billion. Market fund T Rowe Price followed the suit by announcing that it had cut the holding value of its investments in Flipkart by 15.1% in the quarter through March. None of the four firms has given a rationale for the valuation. In the past, Flipkart co-founder Sachin Bansal has appeared unfazed by the markdowns, terming it a “theoretical exercise, not based on any real transaction in the space”. “I do not think valuations change because some small shareholders have changed their opinion. I do not think and worry too much about this,” Bansal had said when Morgan Stanley marked down the firm’s valuation. Since the beginning of 2014, Indian start-ups have amassed more than USD 9 billion in investments. However, investors started to curb or withdraw late last year due to a couple of factors such as China’s growth slowdown and worries over business models of start-ups. These markdowns come at a time when American e-commerce company Amazon is snapping at the heels of Flipkart and local etailer Snapdeal. Analysts and investors are of the view that the American giant’s Indian unit may pip its local rivals unless they improve on their technologies, services and, more importantly, bag more investments. Charles Tapper Jersey
A modular kitchen from the Tata stable in future?
You have ‘Tata’ in your salt, tea and pulses. Chances are that you may even end up cooking the ingredients in a ‘Tata’ kitchen. The Tata Group has developed a distinct modular kitchen with features like ultrasonic cleaner and vegetable cooler at an extremely competitive price as the 148-year-old conglomerate places innovation at the heart of its strategy to explore new areas. Though Group company Titan has designed the kitchen studio, the commercialization of the product, if ever, will be handled by another Tata entity as the former is mainly into lifestyle-related accessories. The innovation in modular kitchen complements the group’s another company, Tata Housing, which has begun betting on affordable residential complexes. The modular kitchen market is largely unorganized with Godrej & Boyce leading the Rs 1,100 crore organized space. Titan, which has been a master in designing for many years and also credited with making the slimmest watch in the world, is behind the modular kitchen that has been created keeping in mind the uniqueness of Indian cooking process. However, “we have to see where to place this innovation,” said Dr Gopichand Katragadda, group chief technology officer (CTO), Tata Sons, the conglomerate’s holding company. Katragadda, who joined in as Tata Sons’ first CTO in 2014, came in with a clear mandate of making the group among the top 10 innovative companies in the world. He introduced a consortium model where group companies work in synergy to create breakthrough innovations with a focus on energy; food and wellness; digital consumer products and services; and digital factory and fleets. Among the other innovations that the group has come up with includes wearable fitness device that monitors health. The group spent 2.7% of its turnover, amounting to Rs 17,896 crore ($2.9 billion), in research and development in fiscal 2015. In comparison, Katragadda said companies globally spend about 4% of their revenues on research. During the year under review, it filed over 2,000 published patents, 50% more than what it had filed in 2014. The innovations have resulted in the group saving and creating additional revenues of $1 billion. The group got its cue on importance of innovation 15 years ago when it ventured foreign shores. Drew Brees Jersey
Markdown theoretical exercise, not worried: Sachin Bansal
As another round of mutual funds cut the value of their stake in Flipkart, the company’s Executive Chairman and Co-Founder, Sachin Bansal says it is a theoretical exercise and would not worry too much about it. “It is a theoretical exercise, which is not based on any real transaction in the space. I do not think valuations change because some small shareholders have changed their opinion. I do not think and worry too much about this,” said Sachin Bansal when quizzed about such markdowns at a conference recently. Fidelity Rutland Square Trust II, a mutual fund managed by Fidelity Investments has marked the value of their Flipkart shares at $82 per unit for the February ended quarter, down 21.1% from $103.97 per unit assigned to them at the end of November 2015. This markdown pegs Flipkart’s valuation between $9.2 billion to $10.7 billion. “If we do not need to raise funds, it is not important what others think. I think in the long term things will take care of themselves,” says Bansal. This is the second consecutive markdown from both the mutual funds. Fidelity and Valic had earlier marked down their holdings in the company by 24% and 12% respectively in the previous quarter. A mutual fund managed by T Rowe Price had earlier marked down its shares of India’s most valued internet company Flipkart by 15%, after Morgan Stanley had resorted to such a move. The news comes amidst a tight fund raising conditions in the startup ecosystem and Amazon posing a stiff challenge to Flipkart’s dominance. Bansal, however, says he is confident Flipkart has strength against competition. “This is true for every company that the only way to compete and win is through differentiation and that is what we are focusing on. Our aim is to understand the customer and the seller better and creating unique markets.” Michael Crabtree Womens Jersey