Foreign airlines will be first to offer in-flight connectivity
Foreign carriers such as Singapore Airlines and Lufthansa are soon likely to offer mobile connectivity on board flights in Indian airspace after the government’s go-ahead. But local airlines may go slow on rolling out the service because of the cost involved, said industry executives. “It’s a welcome decision. Lufthansa doesn’t offer call services but we do offer data services,” said Wolfgang Will, a senior director at the German airline. “Right now, an aircraft has to fly out of Indian airspace for connectivity to be activated. After this approval, there is a possibility of providing passengers with the services within the Indian airspace too. We shall definitely look at it.” Singapore Airlines offers in-flight connectivity on Airbus A380, A350 and Boeing 777-300ER aircraft through SITA ONAIR and Panasonic. “Coverage for in-flight connectivity services are dependent on the approvals obtained by service providers,” said a spokesperson at the airline. Getting approvals will now likely be easy following decision of the Telecom Commission, the highest decision-making body in the telecom department, to allow the service. “Great that India has finally taken this grand decision after 15 long years when technology was first demonstrated,” said Mark Martin, founder of Dubai-based Martin Consulting. “But it remains to be seen at what price it will come to consumers. These are satellite calls. It will obviously be akin to roaming rates. It will be interesting to see how the consumer can absorb it,” he added. Globally, rates offered by airlines vary as per route, aircraft and class. Will of Lufthansa said the entry rates for flights are EUR10 (about Rs 800). Emirates has plans ranging from $4.99 to $10.99 (Rs 335-736), according to its website. The rates are cheaper if the passenger is a member of the frequent flyer club. There are offers, too. Singapore Airlines, for example, has an ongoing offer for 24-hour Wi-Fi connectivity at SGD23-SGD25 (Rs 1,147-1,247), according to its website. Back home, Indian carriers have yet to decide whether and when they will offer the services. “It is a welcome move by the Telecom Commission as it would mean more convenience to air travellers. We will study recommendations in details and in due course determine economics of offering on domestic and/or international routes,” said a spokesperson at Vistara, the joint venture carrier between Singapore Airlines and Tata Sons. The airline plans to start international flights in the second half of this year. “We have not applied our mind on it yet. We need to work out on the implementation and cost of it first,” said Rahul Bhatia, the interim CEO and a founder of IndiGo. Kenyan Drake Authentic Jersey
Air India’s aircraft sit idle because it can’t pay for spares and repair
Despite many attractions such as lucrative international routes and prime time slots, Air India has yet to find a suitor after the civil aviation ministry came out with the preliminary information memorandum on Air India’s strategic disinvestment on March 28. Air India’s mountain of debt, besides many other issues, discourages buyers. The debt stands at Rs 48,876 crore. India’s national airline is also being bled by a cash deficit. The civil aviation ministry has admitted that several of its aircraft are idling because Air India is unable to purchase all the spares it needs thanks to a monthly cash deficit of Rs 200-250 crore that affects the availability of funds for maintenance, according to a TOI report. The ministry has told Parliament’s Public Accounts Committee (PAC) that a restricted cash flow was responsible for inoperational aircraft despite a turnaround plan (TAP) being in force since 2011 while fleet expansion had been hit by viability issues and an ongoing CBI probe into previous acquisitions. On March 28, the ministry came out with the preliminary information memorandum on Air India’s strategic sale. It has sought expressions of interest from potential bidders for a 76-percent stake sale in loss-making Air India as well as divestment of Air India Express and AI-SATS. The last date for submission of expression of Interest is May 14. The qualified bidder will be informed on May 28. A number of airlines have refused to come forward due to discouraging terms of sale. “There is a cash deficit of Rs 200 crore to Rs 250 crore every month which affects the availability of funds for procurement of spares,” the ministry told the PAC even as it said that “every attempt” was being made to devote maximum financial resources to the availability of spares to improve utilization of aircraft. It needed $300 million accessed through external commercial borrowings to liquidate outstanding dues of foreign suppliers in 2015 to improve the situation as maintenance expenditure soaked up Rs 2,500 crore or 12% of the debt-laden airline’s operating expenditure. The ministry told the PAC that aircraft engines earlier sent abroad for overhaul and repair were being maintained domestically. “AI is also in constant dialogue with its suppliers to remove the credit hold in order to maintain a smooth supply of spares for sustained and uninterrupted operations,” it said. The ministry also stated that aircraft acquired on lease were grounded for around two months at the time of redelivery as a number of conditions had to be satisfied. With a total debt totaling Rs 48,876 crore (government-guaranteed Rs 25,388 crore and non-GOI guaranteed Rs 23,488 crore) AI’s cash situation remains perilous despite improvements in operating profits. AI’s debt remains high as a key assumption or objective of the TAP — accumulation of Rs 5,000 crore by way of monetization of properties — has not happened. As against Rs 500 crore being monetized every year, AI has managed only Rs 725 crore till date and reason is “defective title deeds” and a bar by the ministry of urban development on a sale of property given the airline on “perpetual lease”. Though AI’s turnover has been increasing, and the TAP and financial reconstruction plan have helped improve on-time performance, load factor, aircraft utilization, hiving off non-core assets and gaining equity support, cash losses remain high despite a declining trend. Also, plans to offer a VRS (voluntary retirement scheme) to employees was dropped as it was found to be financially unviable. Cam Atkinson Womens Jersey
AAI-managed 15 profit-making airports likely to be privatised
About 15 profitable airports, including the facilities at Chennai and Ahmedabad, could be put under private management in the first such privatisation initiative by the National Democratic Alliance (NDA) as part of the broader government move to enhance India’s aviation infrastructure. “The Airports Authority of India (AAI) has, by the end of last fiscal, about 15 profit-making airports and these would be the first to be put on the block,” a senior government official, who did not want to be named, told ET. Earlier, the United Progressive Alliance (UPA) had privatised facilities at the nation’s two biggest aviation hubs — Mumbai and New Delhi — besides the two southern airports in Bangalore and Hyderabad. Among the profitable airports still under the management of the AAI, New Delhi’s landlord for aviation facilities, are Ahmedabad, Chennai, Jaipur, Kolkata, and Lucknow. The government had earlier decided to award only management contracts at AAI-owned airports to private parties. However, attempts to award contracts for Jaipur and Ahmedabad airports did not receive encouraging bidding interest. In what would virtually be the second wave of airports privatisation in India, one of the world’s fastest-expanding aviation markets, think-tanks are working toward building a model mechanism that would shift management and operating ownership of the auctioned facilities away from the AAI. “The Prime Minister’s Office has directed the Department of Economic Affairs and Niti Aayog to prepare a model mechanism for taking certain airports out of AAI control and handing them over to private players,” said another government official, who did not want to be named. To implement the plan, South Block has also asked the aviation ministry, with assistance from DEA and NITI Aayog, to prepare a model concession agreement for greenfield airports and for the redevelopment of brownfield facilities. “The new model concession agreement would take into account all eventualities, including real-estate development on airport land,” said the official cited above. Analysts welcomed the move, saying that the latest wave of privatisation would drastically improve airport infrastructure in the country. “This, by far, is the best solution to improve airport infrastructure. If the government does come out with a proper model agreement, I am sure it will receive immense response from many Indian players that have a lot of appetite left,” said Sanjay Sethi, managing director and chief executive at infrastructure advisory firm Nestor Consulting. Sethi, however, added that global players may not be too keen on some of the properties since the airports on offer would include those in relatively smaller cities. Joe Looney Authentic Jersey
‘Several queries’ received for Air India privatisation: Disinvestment Secretary
The Centre has received a “lot of queries” from both airlines and non-airlines for the proposed privatisation of national carrier Air India. “There have been several queries — both from airlines and non-airlines,” Neeraj Kumar Gupta, Secretary, Department of Investment & Public Asset Management (DIPAM), told reporters on the sidelines of Assocham organised conference on private equity and venture capital investment conference in the capital. Earlier, in his address, Gupta said that there are no restrictions for private equity and venture funds from participating in strategic divestments like Air India. “Venture funds can always tie up with technical partners to bid. All that is required is they meeting the net worth criteria,” Gupta said. The expression of interest documents do not explicitly prohibit venture funds and there should be no impression that they cannot participate, he added. Gupta highlighted that India was the fastest growing large economy and continues to be an attractive destination for foreign investments. Robert Alford Jersey
UDAN provides new hope for defence airports in Bengaluru
The Civil Aviation Ministry’s aggressive promotion of the regional connectivity scheme (UDAN) is providing some hope for defence airports in Bengaluru and Bidar to resume operations for small passenger aircraft. The recent “no-objection“ from the Bangalore International Airport (BIAL) board to the Hosur airport in Tamil Nadu to operate five flights a week is being seen as a positive step in this direction. The HAL airport in the city and the Bidar airport have not been able to benefit from the phenomenal growth in the civil aviation sector in recent years because of a clause in the concession agreement the Civil Aviation Ministry has signed with private airport operators. This clause seeks to protect private investors by barring a second airport for commercial flights within a radius of 150 km. The Fairfax Group-controlled BIAL and the GMR Group-controlled Rajiv Gandhi International Airport in Hyderabad have not allowed HAL and Bidar airports, in that order, to host commercial flights. Industries and infrastructure minister RV Deshpande told ET that he has been pursuing with the Bengaluru and Hyderabad airport operators on the need for regional connectivity at these two airports on certain terms and conditions. “I have told BIAL to look at HAL airport’s case in the same way as Hosur airport. I recently met GMR Group chairman GM Rao and told him to help as the north Karnataka region badly needs air connectivity in the backdrop of industrial and other activities.“ The GMR Group chairman, he said, responded positively and the Rajiv Gandhi International Airport CEO has followed it up with a letter to the Civil Aviation Ministry . The minister said he has also spoken to MoS (Civil Aviation) Jayant Sinha to call a meeting with all airport stakeholders and open the HAL and Bidar airports for regional connectivity . “As far as HAL airport goes, the ball is in BIAL’s court. Both BIAL and HAL have to work together to make things happen. That the BIAL Board granting permission for Hosur airport is a good sign and it may pave way for similar treatment for HAL airport too,“ said DV Prasad, Additional Chief Secretary, Industries Department, and a BIAL board member till recently . HAL, a company spokesperson said, has recently written to the Civil Aviation Ministry requesting inclusion in the list of airports identified for regional connectivity . According to government officials, non-availability of takeoff and landing slots at Bengaluru and Hyderabad international airports may work in favour of HAL and Bidar airports. These metro airports are unlikely to entertain small aircraft deployed for regional connectivity in peak hours. At a recent meeting the Karnataka government convened, airline executives told Deshpande that airlines deploy smaller aircraft such as ATRs for regional connectivity and ATRs usually take more time for takeoff compared to a large aircraft. Metro airports prefer slotting bigger aircraft to turboprops precisely because of this reason. The turboprops too would need peak-hour slots if regional connectivity scheme has to meet passenger needs, they said.
40-year-old aircraft may not get DGCA nod for cloud seeding
The government’s efforts to provide respite to farmers struggling without rain through cloud seeding might hit a legal hurdle. One of the four aircraft to be used for the purpose is unlikely to get clearance from the Directorate General of Civil Aviation (DGCA), which has earlier denied permission to one such plane for the project. While the Karnataka government has awarded the Rs 30-crore project to Hoysala Projects, two other firms with valid licences to operate aircraft have been roped in to provide the service. The first one was to bring three planes and the second company one. But the former’s request for permission for one of the three planes was denied as it was aged 25 years. DGCA regulations stipulate that the maximum age of aircraft for temporary import from a foreign firm should be 18 years. Documents with TOI show that the second firm has now sought permission to bring in an aircraft – Piper Cheyenne Aircraft N 361 JC – manufactured in 1977. But the DGCA, which has already denied permission for an aircraft aged 25 years, is unlikely to consider the proposal to fly in a 40-year-old plane. Further, documents reveal that Piper was purchased by Agni Aviation Consultants, Bengaluru for $9,27,000 in 2009. Mike Gesicki Womens Jersey
Delhi to have a terminal for private flights by 2020
To streamline flight movement and cater to the demands of chartered flights in the capital, IGI Airport will have a dedicated terminal and parking bays for private planes by 2020. By consolidating general aviation — all civil aviation operations other than scheduled flight services — the new terminal seeks to provide faster access to chartered flights as well as reduce congestion in Terminal-1 from where these flights now take off. The airport operator, Delhi International Airport Limited, has appointed two concessionaires to develop fixed base operator (FBO) as well as world-class maintenance, repair and overhaul (MRO) facilities at the new terminal that will have separate hangars and aircraft parking bays for general aviation services. At close to 1,250 movements each month, IGI handled close to 15,000 general aviation movements during the financial year 2016-17. “Initially, general aviation operations at the Delhi airport was unorganised and many local agencies were involved in providing such services. Hence, the services and associated infrastructures offered to general aviation operators were not at par with international standards,” said a DIAL spokesperson. The new general aviation terminal will cater to the increasing demand of non-scheduled operators, he added. IGI airport currently handles the maximum traffic in terms of general aviation movement and VIPs using private planes also use Terminal-1 to board a chartered flight. “The new terminal can further boost that growth by providing faster access to such flights and providing world-class facilities. Even the larger planes can then be accommodated at the IGI airport,” said Rajesh Kumar Bali, MD, Business Aircraft Operators Association. Besides new facilities, the terminal will let a person board a private plane within five-10 minutes of arriving at the airport, said officials from Bird ExecuJet — one of the two concessionaires at the general aviation terminal. “One just needs to directly enter the terminal, get the details verified and directly walk on to the plane. Earlier, this process would take close to two hours and further congest T-1. With India’s GDP rising steadily and globalisation spreading its wings, this type of aviation is becoming a necessity and not a luxury. With the upcoming fixed base operations at Delhi’s IGI, passengers will have better access to these services,” said Gaurav Bhatia, executive director, Bird Group. Mike Gartner Womens Jersey
Sabarimala airport: Kerala govt to identify consultant for feasibility study
Moving a step forward for the ambitious Sabarimala airport project, Kerala government on Monday said that the process of identifying a consultant to conduct a feasibility study for the greenfield airport is on. The airport, planned in the 2,263 acre Cheruvally estate about 48 km away from the famed Sabarimala Lord Ayyappa Temple, has been a long felt need of lakhs of pilgrims, who throng the hillock shrine annually. Chief Minister Pinarayi Vijayan, in a written reply in the state assembly, said that the Kerala State Industrial Development Corporation, which has been entrusted with the task of identifying the consultant, submitted a recommendation in this regard. “KSIDC had invited Expression of Interest and submitted a recommendation to the government after completing the necessary procedures. We are examining this,” Vijayan said. The Chief Minister also made it clear that the government is yet to begin the land acquisition procedures for the proposed project. A dispute regarding the ownership of Cheruvally Estate is now under the consideration of the Kerala High Court, he said adding that as per the revenue records the property is government land. Lakhs of devotees visit the famed Lord Ayyappa shrine during the three-month long pilgrimage season between November and January every year. The temple is situated in the mountain ranges of the Western Ghats in Pathanamthitta district. The number of pilgrims visiting the temple has gone up in recent years and an airport is considered as an alternate to reduce traffic congestion during the festival season. The state government had in February 2016 accorded in principle sanction to construct the greenfield Sabarimala Airport. Earlier, there was a proposal to set up an airport at Aranmula, but following stiff resistance from environmental groups, the LDF government had last year cancelled all orders related to the project, including the grant of in-principle sanction. J. C. Ramirez Womens Jersey
No Early Delivery of Rafale Jets for India
The Indian Air Force will not be getting Rafale fighter jets before schedule despite several requests by the Indian government to France to speed up the delivery. “The delivery of the aircraft will commence from September 2019 and will be completed by April 2022. There is no anticipation of any delay in the scheduled delivery of the aircraft,” Arun Jaitley, India’s Minister of Defense informed the Parliament on Friday. On July 18 this year, Chief of Indian Air Force, B S Dhanoa visited the production facility of Dassault Aviation in France where Rafale jets meant for India were being manufactured and had reviewed the expected delivery time for the first batch of aircraft. Last year, India had sent a formal request to France to expedite the delivery of Rafale jets. “As per terms of the deal it is 36 months (during which the delivery has to start), but it may come slightly earlier. We have requested them to (deliver it) as fast as possible,” Manohar Parrikar, the then Defense Minister of India had said in a statement. However, Dassault Aviation’s half yearly report released on July 26 indicated a grim possibility of early delivery of Rafale to India. The report said that the company could complete manufacturing only four fighter jets in the first half of the current year as compared to seven aircraft in the same time period last year and the deliveries were made to armed forces of Egypt and France. Petr Mrazek Womens Jersey
DGCA to meet airlines ahead of ICAO audit
Aviation regulator DGCA will hold a meeting with airlines here tomorrow to assess their preparedness for the upcoming audit by the UN safety watchdog ICAO, an official said. The International Civil Aviation Organisation (ICAO) is set to carry out a safety oversight audit of the Directorate General of Civil Aviation (DGCA) in November this year. The audit is conducted in areas related to legislation, organisation, licensing, operation, airworthiness, accident investigation, air navigation and aerodromes. Significantly, the DGCA has already commenced a special audit of all scheduled domestic airlines to check their compliance with various safety and airworthiness requirements. “The DGCA will hold a meeting with the airlines here tomorrow to check their preparedness for the upcoming safety audit by the ICAO,” the official said. Antoine Vermette Jersey