Punjab and Haryana HC summons secretary of Civil Aviation Ministry, AAI chairman
IRKED WITH the repeated failure of the Central government authorities to make it clear to the court the exact date of starting international flights from Chandigarh International Airport, the Punjab and Haryana High Court has summoned the secretary of Civil Aviation Ministry and chairman of the Airports Authority of India. Directing both the officers to remain present in the court at 10 am on May 30, a division bench comprising Justices S S Saron and Gurmit Ram remarked, “You are under misconception that we are begging you to start international flights. Just make a statement that [international] flights cannot be started. Each time you come and make fool of everyone.” The court was addressing Assistant Solicitor General of India Chetan Mittal. “We are just bothered that public money [spent on construction of international airport] should not be wasted,” the court said. Prime Minister Narendra Modi had on September 11, 2015, inaugurated the Chandigarh International Airport on which around Rs 1,400 crore had been spent but no international flight is operational from Chandigarh so far. Raising a serious question, Punjab’s Advocate General Ashok Aggarwal alleged a “serious nexus” in Delhi resulting in delay of starting of international flights from Chandigarh. “Entire issue is being stage-managed by some person from Delhi. We know who is affected. It is a time-table game in airlines industry. A gentleman at Delhi says if you start flights from Chandigarh, XYZ is affected. Everyone knows it,” submitted Aggarwal. The Advocate General submitted that the Punjab government has spent a huge amount on construction of the international airport and Delhi airport caters to around 40 per cent of the international passengers from Punjab, Haryana, Himachal Pradesh and even Jammu and Kashmir. He said if the international operations are started from Chandigarh airport, it would also reduce huge traffic from Delhi roads every day. Petitioner Mohali Industries Association’s senior counsel Puneet Bali argued, “It needs to be probed by a high- level independent authority like the CBI or the CVC. Somebody is taking calls somewhere. It really needs inquiry.” He added, “Rs 1,400 crore has been spent on international airport and now every airline is coming here saying we can’t fly. Have they (central government authorities) not done homework earlier?” Addressing the Assistant Solicitor General of India, who informed that the proposal for relaxing the rules for the domestic airlines to start international operations is with the Cabinet but even then private airlines are not showing interest, the court said, “We are damn bothered about what airlines are doing.” During the arguments, the counsel appearing for the IndiGo airlines submitted that though they have got the customs clearance from Punjab, customs authorities in Delhi have not given them clearance to uplift duty-free liquor since March 29. The two airlines that have applied to the authorities and could start international operations in near future from Chandigarh are Air India and IndiGo. Jet Airways and Spice Jet have made it clear that as of now they have no plans to mount international flights from the Chandigarh airport. However, Go Air, Air Asia (India) and Vistara have submitted that they are not eligible to fly on international routes as per the existing rules. Jet Airways has also submitted that the cost of operation of international flights is very high and for Chandigarh-Canada-Chandigarh, it would be approximately Rs 2.6 crore for a round trip. “As passenger load is very less, it is not commercially viable,” it has submitted. Jet Airways has also raised various issues regarding operational constraints at Chandigarh airport like CAT-III Instrument Landing System for operations during foggy season, unavailability of Approach Landing System, closing of operations at airport between 8 pm and 7.30 am. Jarrett Allen Jersey
Scoot launches flight operations in India
Scoot, the long-haul budget arm of Singapore Airlines, today launched its operations in India with flight services to Chennai and Amritsar from Singapore. The airline will operate a daily direct service to the Tamil Nadu Capital from Singapore with a 335-seater Boeing 787-800 aircraft while Amritsar would have three-times-a-week operations service with a 375-seater B787-900 plane. Besides, it has already announced to launch services from Jaipur from October this year. On the Chennai-Singapore route, Scoot will take place of SIA’s another subsidiary airline Tigerair which has been operating 12 flights a week with narrow-body aircraft. “India is one of the fastest growing aviation markets in the world. Guests from India can now fly to amazing destinations in our Asia-Pacific network through the Singapore hub, as well as onward with Singapore Airlines, SilkAir and Tigerair in the SIA Group portfolio,” Chief Commercial Officer for Scoot and Tigerair, Leslie Thng said. Scoot also plans to scale up frequency from Amritsar to four times a week, starting July 2. Jeremy Hellickson Authentic Jersey
VRL Logistics chairman Vijay Sankeshwar plans to start air carrier from Bengaluru
Vijay Sankeshwar, chairman of VRL Logistics, is finalising plans to start a regional air carrier from BENGALURU, which may result in the birth of a second airline from the city after the launch of the now-defunct Air Deccan 13 years ago. Sankeshwar and his son Anand Sankeshwar will invest about Rs 1,300 crore in the airline venture over the next three years, putting in Rs 300 crore in equity and raising debt for the balance amount. They will run it independent of VRL Logistics. “We currently hold 69% in VRL Logistics. (We) will dilute 8-10% and use that money to invest in the aviation business,” Vijay Sankeshwar told ET. The Union Cabinet is expected to clear the national civil aviation policy on Wednesday , which is likely to offer a slew of sops to regional airlines in the form of exemptions such as airport charges, service tax on tickets, and excise duty on aviation fuel. Vijay Sankeshwar said he was looking at having a fleet of 8-10 aircraft and that he had not yet decided on the type of aircraft or pricing. “We are still working things out and have to get regulatory approvals. We have not yet started negotiation with manufacturers,” he said. The businessman said he saw huge potential in the regional aviation business as air connectivity in southern India is sparse. “There is no proper air connectivity to places such as Hubballi or Belagavi. We may introduce services like BengaluruChennai, Bengaluru-Tirupathi, Chennai-Coimbatore, etc. We will limit our operations to the 2-3 neighbouring states,” he said. VRL Group, founded 40 years ago in Gadag in North Karnataka, is a formidable player in the logistics space with a pan-India presence. The company owns a fleet of 4,253 vehicles and caters to both the logistics and passenger service markets. The group also publishes a Kannada daily. India’s low-cost aviation pioneer GR Gopinath hailed Sankeshwar’s plans to start a regional airline, saying having more carriers would do a world of good for air travellers. But he also said that despite the huge potential that exists for regional airlines in India, the industry needs sweeping reforms. “Our fundamental aviation regulations date back to 1930s, and, as a result, only about 70 million domestic tickets are sold, translating to 30 million fliers. We have several airports in India without any flight service,” Gopinath said. Sankeshwar’s announcement turned investors in VRL Logistics nervous on Tuesday and several rushed to sell their holdings in the firm. The stock lost 20% of its value and hit the lower circuit on BSE and NSE on a day when the benchmark Sensex index closed up 75 points. VRL Logistics chief financial officer Sunil Nalavadi clarified to the stock exchanges that the company had no plans to commence an airline and that the promoters would float a separate company in their individual capacities for their aviation business. The airline will be run by a professional chief executive. Tom Seaver Authentic Jersey
Airlines seek weather updates ‘well in advance’
Airlines today urged the Civil Aviation Ministry to help put in place a mechanism for providing weather updates “well in advance”, a day after more than two dozen flights to the national capital were diverted due to inclement weather conditions. A host of issues, including about weather forecast system, were discussed during a meeting of executives from domestic airlines and airport operators with Ministry officials here today. Sources said the airlines sought the Ministry’s help to have a system at the major airports whereby they can get information about “weather conditions well in advance”. Getting an update at the earliest would help in minimising disruptions to flight schedules, they added. In the wake of bad weather, more than two dozen flights to the Delhi airport were diverted and many others delayed yesterday. During the meeting, the airlines proposed utilisation of unused airports in the vicinity of major aerodromes for landing purpose in case of emergency situations and diversions, sources said. Besides, the carriers have sought expeditious clearance with respect to new directors and crew members, they added. Among others, there were deliberations on increasing the facilities for night parking of planes at various airports. Representatives from the Federation of Indian Airlines (FIA), Airports Authority of India (AAI), Air India and operators of Delhi and Mumbai airports, among others, are believed to have participated in today’s meeting. Jet Airways, SpiceJet, IndiGo, GoAir and Jet Lite make up the FIA. Airlines are facing issues at various airports, including at Delhi, Mumbai, Chennai and Kolkata. They vary from congestion to delay in getting ATC clearance which are adversely impacting the on-time performance of many carriers, sources had said. Among others, at Chennai and Kolkata airports, airlines are facing infrastructure constraints, mainly since terminal capacity has not kept pace with the increase in aircraft movements. Aleksi Heponiemi Jersey
Tirupati Airport to begin international operations by June end
International operations from Tirupati Airport will begin by June end, with initial flights to the US and the middle-east (via New Delhi), a senior Andhra Pradesh government official said today. Customs and other procedural formalities are being completed at the newly-developed airport for the launch of international operations, Principal Secretary for Energy, Infrastructure and Investment, Ajay Jain said. “To begin with, we will have flights to the US and the middle-east (via New Delhi) and subsequently to other international destinations,” Jain told a press conference here. Vijayawada airport too would have international flights once the interim terminal building gets ready, he said. While the interim terminal building was originally scheduled to be completed by October but Chief Minister N Chandrababu Naidu has asked the contractor to finish it by August in time for the Krishna Pushkarams. The existing airport at Rajamahendravaram was being expanded to enable operation of larger aircraft like the Airbus A-319 and A-320, Jain added. “We have acquired 857 acres of land at a cost of Rs 350 crore for expansion of the runway. The Airports Authority of India will spend Rs 120 crore on the expansion work,” he added. About the problems in acquiring land for the proposed greenfield International Airport at Bhogapuram near Visakhapatnam, the Principal Secretary said farmers in the region were now coming forward to part with their lands under the land pooling scheme proposed by the state government. “About 97 per cent of farmers are ready to give their land as we are offering them a best compensation package. So far, we have got consent from farmers for giving 350 acres of land. “The Bhogapuram Airport Ltd, the special purpose vehicle constituted to develop the airport, is securing Rs 1,500 crore from the Hudco (Housing and Urban Development Corporation Ltd) and the bidding process will start in June,” Jain said. Dwayne Allen Womens Jersey
GRMs of oil marketing cos may recover on strong demand: Report
Gross refining margins (GRMs) of public-sector oil marketing companies may recover on account of strong demand and higher marketing margins, says a report. According to stock brokerage ICICI Securities, GRMs of oil marketing companies (OMCs) in the first quarter of 2016-17 so far is sharply lower compared to the estimates in the last fiscal. While the first quarter GRMs estimated for state-run HPCL are marginally lower, those for other public sector entitiesBharat Petroleum Corp (BPCL) and Indian Oil Corporation are higher than the forecast for whole of the current fiscal, it added. “We are hopeful of recovery in GRMs as recent data suggests strong global oil demand growth,” ICICI Securities said in a report. “Higher marketing margins than assumed are also not ruled out,” it added. The brokerage has estimated GRMs of the OMCs to be at USD 4.3-5.5 a barrel, which is 11-28 per cent lower than their 2015-16 estimates, the report said. GRM generally refer to the difference between the total value of petroleum products coming out of an oil refinery and the cost of crude oil. “Our assumption of OMCs’ 2016-17 GRMs are conservative and we estimate that their first quarter GRMs have been boosted by inventory gain of USD 1.1/bbl,” the report said. Julius Nattinen Womens Jersey
India seeks rights to operate Iran oil field
India has sought a discovered oilfield from Iran for raising crude oil imports from the Persian Gulf nation as part of efforts to widen economic and energy ties post lifting of sanctions. Indian Oil Corp (IOC), the nation’s largest oil firm, has proposed to Iran that it be given rights to operate and produce crude oil from the discovered field to help move away from buyer-seller relationship to a strategic partnership, sources privy to the development said. The oil produced from the field can then be shipped home, the IOC has said. IOC had last fiscal imported 1.2 million tons of crude oil from Iran. In the fiscal year that began from April 1, it is looking to raise it by at least three-fold. Prime Minister Modi’s visit to Iran was aimed at boosting trade and commerce between the two countries. His trip came just months after lifting of international sanctions on Iran following Tehran’s historic nuclear deal with the Western powers over its contentious atomic programme. Besides IOC, ONGC Videsh Ltd has also sought two discovered fields from the 16 fields that Iran is likely to put on auction shortly. The fields sought by OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), is besides the Farzad-B offshore field for which it is in advanced talks to secure developmental rights. OVL had in 2008 discovered the Farzad-B field in the Persian Gulf. The field holds 12.5 Trillion cubic feet of recoverable reserves. Sources said Iran has so far not responded to the requests by the Indian firms. It has, however, shown willingness to give Farzad-A, which holds 283 billion cubic meters of reserves. The field besides holding smaller reserves is more challenging, OVL feels. Sources said India may import as much as 20 million tonnes of crude oil from Iran in 2016-17 fiscal, up from about 11 million tonnes in the previous year. This follows lifting of sanctions against Iran in January. Till 2010-11, Iran was the second biggest supplier of crude oil to India after Saudi Arabia. Fresh US sanctions in 2010 led to imports, which were 18.5 million tonnes in 2010-11, to fall to 11 million tonnes. Iraq is now the second biggest supplier of oil to India. Sources said India has also expressed interest in investing in chemicals, petrochemicals and fertilizer plants if Iran provided natural gas at low prices. It also is looking at setting up an ammonia/urea plant in Chabahar Free Trade Zone with long-term off-take of urea to India. While Mangalore Refinery and Petrochemicals Ltd (MRPL) and Essar Oil Ltd – the biggest Indian buyers of Iranian oil – are likely to maintain buying at around 5 million tonnes each, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) may begin importing oil from the Persian Gulf nation. HPCL-Mittal Energy Ltd (HMEL) has indicated it will buy a small quantity with an option to raise volumes. In addition, private refiner Reliance Industries is seeking to buy 5-6 million tons of Iranian oil, mainly heavy grades. India imports about 189 million tonnes of crude oil to meet about 80 per cent of its oil needs. Saudi Arabia sold about 38 million tonnes of oil to India in 2015-16, while Iraq supplied 33 million tonnes. Jose Altuve Womens Jersey
Government seeks bids for oil, gas fields in first auction since 2010
Government is putting up for auction nearly four dozen small oil and gas fields in the first such sale in six years, the country’s oil ministry said in a newspaper advertisement on Tuesday. A successful auction of the small oil and gas fields is seen as crucial to a recently announced hydrocarbon policy, which India hopes will unlock energy resources worth $40 billion by simplifying rules and offering pricing incentives. The world’s fourth-biggest oil and gas consumer imports nearly three-quarters of its energy requirements, but Prime Minister Narendra Modi has set a target of cutting its fuel import dependency to two-thirds by 2022 and to half by 2030. India is auctioning a total of 46 oil and gas fields, the oil ministry said, with 26 on land, 18 offshore in shallow water and two in deep water. The deadline for submitting the bids is on Oct. 31, with companies free to try for more than one exploration block. The mostly small, marginal discoveries on offer were originally controlled by two state-owned exploration companies, Oil and Natural Gas Corporation and Oil India Ltd. The fields have remained undeveloped for years due to their small size and the high cost of development. The current low crude oil prices – now around $48 a barrel – will also likely make it hard for the government to attract bids for the fields. Some exploration consultants have also criticised the revenue-sharing model being used by India as most countries auction oil and gas blocks based on a cost-recovery model. In a revenue-sharing model a company operating an oil and gas field has to share revenue from any sales with the government from first production. In a cost-recovery model a company starts sharing income with the government only once its exploration and development costs have been covered. Jaquiski Tartt Authentic Jersey