UDAN takes off: Government invites airlines to kickstart regional flights
The Government kick-started the regional air connectivity (RCS) scheme on Friday by inviting initial proposals from operators to fly to airports which do not have regular flights. Operators have a six-week window (till December 2) to submit their initial proposals. The Government will take two-three days to scrutinise the proposals and the entire process is likely to take 10 weeks to complete. “We hope to have the first flight (under RCS) by January. I am cautiously optimistic about it,” Ashok Gajapathi Raju, Minister for Civil Aviation, said at the launch of the scheme. Under the Ude Desh ka Aam Nagrik (UDAN) scheme , two weeks after the initial scrutiny, the Government will invite counter proposals from various operators keen to operate on RCS routes and announce the winner within 14 days. The scheme, which provides Viability Gap Funding for operators who cap fares on these flights at ?2,500, allows only one operator to fly on a RCS route for three years. “The idea of the scheme is to get those who wear Hawai chappals on to hawai jahaj (aeroplane),” said Jayant Sinha, Minister of State for Civil Aviation. Tepid response However, the industry’s response to the proposals was tepid. While Ashwani Lohani, Chairman and Managing Director, Air India, said his airline will “definitely” participate, Phee Teik, Chief Executive Officer, Vistara Airlines, said the airline will be able to make a comment on whether the policy was good or bad only after going through it. Issues to be resolved “The scheme is a step in the right direction to promote the movement of people within the country,” he said. Vistara is the brand name of the joint venture domestic airlines between Tata Sons and Singapore Airlines. Ajay Singh, Chairman, SpiceJet, while welcoming the Government’s initiative felt that there were some issues with the scheme which he will raise with the Government and hoped that they would be resolved. “One of the major issues is slot availability because small towns must connect with large towns. At the big airports like Mumbai, Delhi, Bengaluru, Chennai and Hyderabad slots must be available for RCS. Private operators (of airports) have traditionally been reluctant to give such slots. We will see whether they provide them or not. Besides, it is not clear if the concessions are provided at the smaller and larger airports. That impacts economic viability of the whole project,” he added. Singh was also of the opinion that the Government should fund such a scheme from its own budget rather than imposing more of a tax on consumers. “We oppose it from the perspective that there could surely be other ways to fund a scheme which is nationally so important,” he said. Funding RCS In fact, in what could be bad news for flyers between major cities, the Government will notify its proposal on a levy or the quantum of fee on a per departure basis on flights between the major cities by the end of the month, to fund the regional connectivity scheme. The airlines are likely to pass on this marginal increase in their operating costs to passengers which will see domestic airfares increase again. Jordan Willis Jersey
PM: New aviation policy will help unleash potential of smaller towns
India’s aviation sector has huge possibilities of growth with smaller towns unleashing their true potential with middle-class increasingly aspiring to fly, said Prime Minister Narendra Modi, after inaugurating the integrated international terminal building at Vadodara airport on Saturday. Emphasising on better connectivity between smaller towns and distant locations, Modi said the country’s aviation sector is growing rapidly and required attention. He said that for the first time since independence, the government has come out with a dedicated policy for the aviation sector. “There used to be planes, there were flights and there were fliers. But never before have we had a policy for this sector with a clear vision about its future growth.” Green airport Modi also stated that after Kochi, Vadodara has become India’s second airport to be recognised as a green airport. The airport has been developed at a cost of ?160 crore and has a capacity to handle 700 passengers per hour. “As per an estimate, in the next five years, the annual number of fliers in India will be equal to the population of the US. You can imagine the extent of potential this sector has,” the Prime Minister said, adding that the capping of fares of one-hour flights at ?2,500 will further encourage airlines to connect distant pockets. “This policy will help in reviving airports and increase employment opportunity in this sector. Air traffic in these places will have multiple economic effect on these regions.” Railway University Modi said the Centre will set up the country’s first Railway University in Vadodara to boost innovation in railway technology. “Our Railways continue to operate in the old structure. With technology and innovation we can change the face of the Railways in India. This university will play an important role towards encouraging innovation.” Bryan Bulaga Authentic Jersey
Aviation watchdog DGCA to soon get powers to slap penalties
Regulator DGCA and aviation security agency BCAS are all set to get powers to impose fines on violators, with the government preparing to amend the legislation in this regard. The move would give more teeth and leeway to the Directorate General of Civil Aviation (DGCA) and Bureau of Civil Aviation Security (BCAS) in dealing with instances of violations amid the domestic sector witnessing over 20 per cent sustained growth in passenger traffic. For providing penal powers to DGCA and BCAS, the government plans to amend the Aircraft Act, 1934 and it is likely to be taken up during the winter session of Parliament starting next month. “Today, there is no provision for levying penalties. That enablement should happen,” Civil Aviation Secretary R N Choubey told PTI. Currently, there are stringent provisions in place for DGCA to deal with violations at various levels, including those related to airlines, pilots, crew members and other entities. The watchdog can debar, suspend and even cancel the permission to fly for the carriers as well as individual pilots and engineers but cannot impose any monetary penalty. “Today, if there is any irregularity then the licence has to be suspended of the entire airline for a certain time. That is the extreme punishment. There is no provision for anything in between. “We are saying that unless something is very severe, there should be some provision for levying fine,” Choubey said. The powers of BCAS —— which primarily has the mandate to ensure security at airports —— would also be strengthened with new provisions. The Civil Aviation Ministry has already floated the draft amendments to Aircraft Act. Asked whether the ministry would be pushing the amendments in the upcoming Parliament session, Choubey replied in the affirmative. “Yes, it will come in the next session of Parliament,” he said, adding that similar provisions for penalties are there in other countries. In the draft Aircraft (Amendment) Bill, 2016, the ministry has also proposed various other changes such as increasing the quantum of fine that can be imposed under this law to up to Rs 1 crore from existing level of Rs 10 lakh. Among others, a new sub—section is proposed to be included stating that DGCA or any other officers specially empowered by the central government shall perform the safety oversight functions in respect of matters specified in the Act. Oscar Lindberg Authentic Jersey
Staff crunch hits Air India’s MRO plans
Air India’s plans to grow its maintenance, repair and overhaul (MRO) business faces a big risk as it faces a severe shortage of aircraft engineers. Air India hived off its engineering department into a separate unit last January to tap business from other airlines. Primarily, it still caters to Air India’s aircraft maintenance but aims to double its third party business to Rs 130 crore in FY 17. Air India’s MRO unit has around 600 aircraft maintenance engineers and faces a shortage of around 100-150 personnel. Recently it hired around 100 of its retired engineers on contract but still the shortage persists. “Over the next two-three years we will require 250 engineers and the shortage could become a bottleneck to our growth,” said H R Jagannath, CEO of Air India Engineering Services Limited. Part of the additional manpower will be utilised to maintain new aircraft being inducted in Air India’s fleet. But hiring engineers is also proving difficult as it essentially means poaching from another airline. The fresh hiring is also to cater to 15-20 employees who are retiring each month. It takes two-four years for an aircraft technician to secure a type rating and maintenance engineers license and Air India has also begun offering on-job training to technicians from other companies, enabling them to apply to the Directorate General of Civil Aviation (DGCA) for licence. “We are seeking support of DGCA and Boeing for the training programme. The government too should support the MRO sector by offering five year tax holiday, ” he said. Earlier this year, Air India’s MRO began carrying out ‘C’ check (heavy maintenance check) on Jet Airways Boeing 777 aircraft. It has also signed a memorandum of understanding with SpiceJet to maintain its Boeing 737 and efforts are underway to secure European Aviation Safety Agency certification for MRO facilities in Nagpur and Thiruvananthapuram. The MRO unit will also start test and minor repairs of General Electric engines which power Boeing 777 planes at its Nagpur unit later this year and complete overhaul of engines will be carried out from next year. The engine overhaul facility, the first of its kind in India, will significantly boost the MRO business as it can undertake engine repairs of all General Electric engine customers. Jordie Benn Authentic Jersey
BookMyCharters wants to be the Uber of Indian skies
A Mumbai-based startup is changing the way millionaires book private jets and negotiate city traffic to reach airport in time. Traditional methods of booking chartered flights done through brokers take up to 48 hours or longer. Enter BookMyCharters, the long-drawn process ends in a click. Travellers get fare, aircraft type and availability and can make bookings in under a minute. The startup, which wants to be the Uber of India’s chartered aviation skies, lets fliers generate quotes and book private jets real-time — much like Uber the American taxi aggregator it is trying to emulate. “It’s like booking a cab,” says Sachit Wadhwa, co-founder of BookMyCharters. The cost for a hiring an 8-seater private jet from Delhi to Chandigarh could come to as low as Rs 30,000, a search on the company’s website showed. BookMyCharters, led by parent Baron Aviation, launched in December 2015 and offers services across 22,000 routes, 150 locations and has 40 diverse aircraft within India. In cities like Mumbai, it also organises a pick-up from a nearby helipad and then off to Juhu Airport, from where a private chauffeur escorts fliers to the jet. J.R. Richard Authentic Jersey
Air India posts operational profit for first time in 8 years
Air India posted an operational profit of Rs.105 crore in 2015-16 compared with an operational loss of Rs.2,636 crore in 2014-15 due to an increase in traffic growth. This is the first time the national carrier has posted an operational profit since it was merged with erstwhile Indian Airlines in 2007, the financial results of 2015-16 cleared by the airline’s auditors and approved by its Board showed. A sharp decline in aviation turbine fuel prices helped it bolster operational profit to more than Rs.100 crore in 2015-16 even as the airline was earlier expecting an operational profit of Rs.8 crore. Mike Cammalleri Womens Jersey
Foreign registered aircraft may soon fly in India
In an attempt to cut cost, improve ease of doing business and promote regional connectivity, national and regional carriers in India may soon be allowed to use foreign-registered aircraft for charter and regular airline flights. The Ministry of Civil Aviation held a meeting on Thursday, which was attended by Minister of State for Civil Aviation Jayant Sinha, secretary R N Choubey and acting Directorate General of Civil Aviation chief B S Bhullar among others. “Some countries like US allow foreign registered aircraft to operate in their territory. Here an Indian company has to first get the aircraft registered in India after which the aircraft can be used by it for regular or charter flights. We plan to remove this requirement as Indian domestic air traffic is growing at the fastest pace globally and we are promoting regional connectivity in a big way that will also require planes,” an official was quoted saying by Times of India. Under the current system, an Indian company can only use aircraft for regular or charter flights only after it gets the aircraft registered in India. Exemption from the current rule will make it easier for the foreign-registered aircraft owner to take back the aircraft in case of a dispute with the airline operating the aircraft. Since there are less chances of planes getting stuck in India, the leasing companies could also reduce the rentals and thus help domestic carriers. L.C. Greenwood Womens Jersey
Modi to open new terminal at Vadodara airport on Oct 22
A new terminal built for international flights at the city airport will be inaugurated by Prime Minister Narendra Modi on October 22, a top AAI official said on Thursday. “Construction of the new terminal building is part of the Centre’s efforts to modernise existing airports and develop them at par with international standards,” Guruprasad Mohapatra, Chairman, Airports Authority of India (AAI), said. “The new building has been constructed at a cost of ?160 crore and it will be inaugurated by the Prime Minister on October 22,” he told PTI. The terminal at the airport in Harni, on the city outskirts, is spread over 18,120 sq mt and can handle 700 passengers (domestic plus international) per hour. It will have 18 check-in counters, he said. The building, a steel structure, has been designed as per the Advance Building Management System. It has hi-tech security systems, energy-saving cooling mechanism, rainwater harvesting set up and super sensitive fire safety alarm, Mohapatra said. “Currently, 10 flights operate everyday from the Harni airport which is not equipped to handle more than the existing number of passengers. However, the new terminal will help in accommodating additional flights and passengers,” he said. International flights for neighbouring countries will be available from the terminal, but there will be no direct service for the US or the UK as the runway length is not enough to accommodate big aircraft. No international flight has been announced yet. S Rahej, AAI Member (Planning), who recently visited the airport, said the terminal is ready for commissioning. The foundation stone for the building was laid on February 26, 2009, but actual construction work started only in May 2011. Ranjanben Bhatt, the BJP MP from Vadodara, said the city will now find a place on the global civil aviation map. It will be Modi’s first visit to the city after assuming charge in May 2014. In the last Lok Sabha polls, Modi was elected from both Vadodara and Varanasi, but he later vacated the former. Lac Edwards Womens Jersey
India to promote LNG as fuel for vehicles: Pradhan
The Minister of State (Independent Charge) for Petroleum & Natural Gas Dharmendra Pradhan said that the government wants to promote LNG as a fuel for vehicles. “Efforts are being made to have LNG-driven bus in Kerala very soon. Long-haul driven vehicles and trains will also adopt LNG as fuel,” Pradhan said at a media briefing here on Thursday. The country’s LNG handling capacity is being enhanced from 21 mmt to 50 mmt. In Eastern India, the government is laying 2,500 km long pipeline, which will provide gas to industry and help in gas distribution in seven cities of Eastern India, he added. The Minister said the share of gas in the Indian energy basket is 6.5-7 per cent, but India aspires to take the share of gas to 15 per cent in the next three to five years so as to have a new gas-based economy. In this regard, 80 lakh connections have been provided under the Prime Minister Ujjwala Yojana to BPL women and target of 1.5 crore will be achieved this year. The country will zoom from BS IV to BS VI by 2020 so as to have clean fuel. He said there is a large scope of energy efficiency in Indian refineries. On the issue of 2G Ethanol, Pradhan said that public sector companies are setting up 11 plants to manufacture 2G Ethanol. Pradhan was speaking after an MoU signing event between PetroFed and TERI to undertake a study on climate change’s impact on oil and gas sector. The study called “Climate Change Risks: Preparedness for Oil and Gas Sector”, will evaluate how global markets and technological options are likely to change as a result of global climate policy measures. The study will suggest suitable measures for the sector to achieve India’s INDC target of reducing emission intensity of GDP by 33-35 per cent below the levels in 2005 by 2030. It will further highlight how the global market and technological options are likely to change as a result of global climate policy measures; and how the 1.5 degree and 2 degree scenarios of global warming are likely to affect the infrastructure and operations in different climatic zones of India, an official statement said. Pradhan said Cop 21 will come into effect soon and it is important for the country to know the effects of greenhouse gases and ways to control them. He said that this study will provide important inputs for future strategy on oil and gas infrastructure development. Chad Johnson Womens Jersey
GoAir to take fleet strength to 26 by March, to fly overseas by summer
Low-cost carrier GoAir today outlined plans to consolidate its domestic market presence with the addition of six Airbus aircraft to its fleet of 20 by March next, while connecting to select overseas destinations by next summer. Announcing Hyderabad as its 23rd destination in the domestic network, Wolfgang Prock-Schauer, Chief Executive Officer of GoAir, said the airline would introduce daily flights connecting Hyderabad to Chennai, Bengaluru, Bhubaneshwar and Kolkata. Hyderabad will also be connected to Port Blair via Bengaluru, which is seen to provide leisure travellers additional options. He said Hyderabad is a key market in south and central India and a significant base for business and tourism in the region. “Adding Hyderabad, with its ideal geographical locations, we reinforce our commitment towards connectivity across the country,” he said. The airliner, which operates with 20 aircraft now, expects to add one aircraft per month and take its strength to 26 by March 2017. This will enable the airliner to expand its services from the present 144 to 180-190 per day by March 2017. “Apart from strengthening the domestic network, we are looking at operating to some international destinations by next summer. We have identified a couple of locations in China, Iran, Saudi Arabia, and some locations in the Far East to offer our services,” he said. Anthony Zettel Womens Jersey