SpiceJet to dry lease 11 Boeing NG aircraft in next three months
As part of its expansion plan, low cost carrier SpiceJet has planned to dry lease 11 Boeing Next Generation aircraft in the next three months. A senior SpiceJet official told Bloomberg TV India that the 11 new aircraft include both Boeing 737-8 and 737-9. Earlier, the company’s Chairman and Managing Director Ajay Singh had announced that the company is in talks with aircraft manufacturers to purchase aircrafts. The SpiceJet official added that the carrier will start restoring flights that had to be withdrawn due to non-availability of aircraft. At present, the airline has 25 B737-9 and B737-8 aircrafts in service. In addition, 14 Q-400 Bombardier aircraft are serving in tier-II and tier-III cities. Jay Novacek Authentic Jersey
Prime Minister to launch Smart City projects
Prime Minister Shri Narendra Modi will launch Smart City projects on Saturday i.e June 25,2016 kick starting execution of Smart City Plans of 20 cities selected in the first round of ‘Smart City Challenge Competition’. This marks the beginning of holistic and integrated urban development in the country as envisaged under the new urban missions launched by the Government. Prime Minister will launch 14 projects under the Smart City Plan of Pune from the city’s 5,000 capacity Shiv Chatrapati Sports Complex at a programme to be presided over by the Minister of Urban Development Shri M.Venkaiah Naidu. Maharashtra Governor Shri Ch.Vidyasagara Rao and Chief Minister Shri Devendra Fadnavis will also be present on the occasion. Another 69 such projects will be launched the same day in the other Smart Cities entailing a total investment of about Rs.1,770 cr. The projects to be launched in Pune and other cities include Solid Waste Management projects under Swachh Bharat Mission, Water Supply Projects, Sewage Treatment Plants and development of open and green spaces under Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Housing Projects for urban poor under Pradhan Mantri Awas Yojana and area development and technology based Pan-city Solutions under Smart Cities Mission realizing the objective of convergence in implementation of new urban missions. Saturday’s launch also marks the beginning of implementation of urban development plans based on five year action plans formulated after detailed analysis of infrastructure gaps in over 500 cities included in Smart City Mission and AMRUT, accounting for about 70% of country’s urban population. This brings to an end the ad hoc and project based approach to urban development followed so far. Prime Minister Shri Modi will also inaugurate ‘Make Your City SMART’ contest aimed at involving citizens in designing roads, junctions, parks etc. Suggestions and designs suggested by the citizens will be duly incorporated by respective smart cities. Winners of this contest will be given rewards in the range of Rs.10,000/- to Rs.1,00,000/-. This is aimed at continuing citizen participation in the planning under which about 1.50 crore citizens participated in the formulation of Smart City Plans to making of smart cities. Smart Net Portal also will be inaugurated by the Prime Minister which enables the cities under different urban missions to share ideas and source solutions for various issues during the implementation of various missions. All the first batch of 20 smart cities will be linked through video-conferencing on the occasion of launch of projects by the Prime Minister. Smart Cities Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Pradhan Mantri Awas Yojana (Urban) were launched by the Prime Minister on June 25 last year. Subsequently, two rounds City Challenge competitions were conducted to pick up the first batch of 20 smart cities whose projects are being launched on Saturday. These 20 cities have proposed a total investment of Rs.48,000 cr in area development and Pan-city solutions. Some of the projects to be launched city-wise are: Pune : Slum Rehabilitation of Dr.Balasaheb Ambedkar Vasahat Aundh, Steet and Pedestrian Walkway, Modern Buses with Alternative Fuels, Traffic Demand Modelling Project, City Common Mobility Card. Ahmedabad : Sewage Treatment Plant, Irradiation Sludge Hygienation project, housing project, River Front Garden, Common City Payment System, Smart Learning in Municipal Schools, Supervisory Control and Data Acquisition System (SCADA) for water supply. Bhubaneswar: Railway Multi-modal Hub, Traffic Signalisation Project, Urban Knowledge Centre. New Delhi Municipal Council : Mini-sewerage Treatment Plants, 444 Smart Class Rooms, Bio-methanation Plant, WiFi, Smart LED streetlights, City Surveillance, Command and Control Centre. Jabalpur: Waste to Energy Project, Sewerage Treatment Plant, Multilevel Car Parking, Multipurpose Smart Card, Sensor based tags for household dustbins. Jaipur: Beautification of Ramnivas Garden, 100 MW Rooftop Solar Power Plant, Public Bike Sharing Kakinada (Andhra Pradesh): Solar Roof Top Power Plant, distribution of e-rikshaws, e-pathasalas. Kochi (Kerala):Pashinithodu canal rejuvenation and refurbishment, St.John Park renovation, MG Road Footpath renovation. Belagavi (Karnataka): Natural Gas Distribution Network, Rooftop Solar Plant, GSM based monitoring of solid waste collection vehicles. Under Atal Mission for Rejuvenation and Urban Transformation (AMRUT), projects with a total investment of Rs.2,900 cr are also set to be launched in Uttar Pradesh, Madhya Pradesh, Jharkhand, Odisha, Rajasthan, Gujarat, Kerala, Chandigarh and Manipur. These include sewerage projects with an investment of Rs.1,275 cr and water supply projects at a cost of Rs.817 cr. Mark Barron Authentic Jersey
Air operator permit policy to be amended for new FDI norms
The government today said it will amend the existing policy for grant of air operator permit (AOP) to bring it in line with its recent decision to allow 100 per cent foreign direct investment in domestic airlines. It would also be “examining” the substantial ownership and effective control (SOEC) norms of the various countries which permit more than 49 per cent foreign direct investment (FDI) in their airlines, Civil Aviation Secretary R N Choubey told reporters on the sidelines of an aviation event here. Under the current norms, AOP or flying licence is granted to a company only if its chairman and two-third Directors are Indian citizens and its substantial ownership and effective control is vested in Indian nationals. “The policy relating to AOP being given, that policy will be completely aligned with the FDI Policy. So if there is something when higher FDI investment is not resulting in AOP being given, then the AOP requirement will be to that extent will be amended,” Choubey said. Foreign investors, barring overseas airlines, are now allowed to have up to 100 per cent stake in local carriers under the recently liberalised FDI norms. Under the new set-up, 49 per cent FDI will be through the automatic route and for anything beyond, government nod will be required. At present, up to 49 per cent FDI is permitted in scheduled airlines. However, foreign airlines, under the norms, canot invest more than 49 per cent in the domestic carriers. The requirement of SOEC comes up at two places– for grant of AOP to an Indian citizen and at the place where India has to grant bilateral rights, he said. “For the purpose of granting AOP, because the FDI limit has been increased, therefore, correspondingly the AOP requirement of substantial ownership and effective control will also have to be aligned with it. That will require amendment,” he said. As far as bilateral rights are concerned, the requirement of SOEC is also a condition from International Civil Aviation Organisation (ICAO) and not of a particular government or country, he said. “All that it means is that if you are having more than 49 per cent then there may be an issue in getting the bilateral rights for flying abroad. But if you wish to fly within the country, then there is no bar,” he said. When asked why an airline with 100 per cent investment from a foreign country will fly only domestic, Choubey replied, “India itself is a huge market. So somebody if wishes to use its domestic market they can do so.” There are also code shares, the rules regarding which have been also liberalised, Choubey said, adding, “If they wish to grow within the country and also take up the code shares, they can do so.” He said the purpose of allowing overseas investors own up to 100 per cent stake in Indian carriers is to encourage investments in domestic operations. To a question whether domestic carriers owned 100 per cent by foreign investors will be allowed to fly international skies, Choubey said, “We are examining whether they can fly abroad. But presently, it appears that ICAO regulations are binding on signatory countries.” “We will examine what other countries who are similarly placed are going in respect of the carriers being allowed to fly abroad and then will take a call,” Choubey said. When asked how would the government ensure that foreign airlines comply with the 49 per cent FDI ceiling, he said, “As part of the approval, a very thorough due diligence will be done to ensure that directly or indirectly foreign airline ownership does not exceed 49 per cent, which is mandated.” Arian Foster Authentic Jersey
Need to bring down cost of leasing: Aviation Secretary
The Civil Aviation Policy is just the beginning and the government needs to work on how to reduce the cost of leasing aircraft, Aviation Secretary RN Choubey said on Thursday. “The civil aviation policy is just the beginning. We wish to stay ahead of the growth curve and if we fall behind the growth curve, for example as it happened in case of urban development in the country, there will be aviation chaos in skies, airports,” Choubey said at an Assocham event here. On the cost of leasing, he said, “If the cost leasing remains high either because of capital or any other procedural requirement, the regional connectivity may find difficulty in taking off.” Convert unused airports into SEZs? On the policy front, Choubey said that people have been coming forward with ideas. He mentioned an idea he received which suggested converting some unused airports into special economic zones where aircraft leasing companies can park their planes and showcase them to potential customers. Another idea that he received was “the possibility of utilising certain unused airports for the purpose of parking aircraft and even use aerodromes for plane-breaking or dismantling of old aircraft”. The Cabinet on June 15 had approved the Civil Aviation Policy which has scrapped the 5/20 rule for airlines. Moreover, the government aims to make flying more affordable by capping airfares at ?2,500 per hour stage length under Regional Connectivity Scheme at unserved airports. The cap will, however, apply only of a destination which is being connected is currently an unserved airport. The draft of the regional connectivity scheme will be out by the end of this month, he added. Allen Hurns Womens Jersey
Ratan Tata’s aviation ambitions step closer as India opens up
Officially at least, Ratan Tata, patriarch of one of India’s wealthiest business families, retired in late 2012. In reality, he has been a driving force behind Tata’s bet on airlines and a rare public campaign to open up the booming aviation sector. The $100 billion Tata group conglomerate is a major beneficiary of the decision last week to open up aviation in India, making it easier for start-ups to fly overseas sooner. The decision is no panacea for Tata, whose airlines – Vistara and AirAsia India – have had a slow start in a competitive market dominated by IndiGo, owned by InterGlobe Aviation, and Etihad-backed Jet Airways, both of which opposed the rule change. But it marks a victory for 78-year-old Ratan Tata, and ends more than two years of airlines lobbying, of Twitter rows and of frequent public statements from the usually circumspect steel-to-salt group. “This was a David-and-Goliath kind of situation,” said a source close to Tata group. “There was huge lobbying from the other side.” Ultimately, sources familiar with the talks said, it was Ratan Tata, a trained pilot, who was key to sealing the deal, capitalising on his clout. In a message earlier this year, he called for “a new open market economy” and said airlines lobbying against a rule change was “reminiscent of protectionist and monopolistic pressures by vested interests’ entities who seem to fear competition.” A spokesman for Tata Sons denied Ratan Tata was directly involved, saying he had “nothing to do with operations or management of either of the airlines” after his retirement, and that views he expressed were personal. Tata Sons is a significant shareholder in major Tata group companies, and about two-thirds of Tata Sons’ equity capital is held by philanthropic trusts endowed by the Tata family. TURBULENT BEGINNINGS Not that either of Tata’s two airline ventures – a low-cost carrier owned with Malaysia’s AirAsia Bhd and Vistara, a full-service carrier run with Singapore Airlines – is yet ready to fly overseas. Both have had turbulent starts. Vistara initially focused on domestic business travellers, but had to reconfigure its aircraft after a year, to replace pricier seats with cheaper ones. AirAsia underwent a management shake-up earlier this year. Vistara’s share of India’s passenger air market is rising but is still just 2.5 percent after nearly 18 months in business. AirAsia’s share after two years has stagnated at about 2 percent, government data showed, compared with IndiGo, which has a 39 percent share, and Jet Airways with 19 percent. But flying overseas is critical. It means higher profits and margins than in India’s cut-throat market dominated by low-cost carriers, and Vistara and AirAsia now aim to boost their fleet sizes within a year. A Tata Sons spokeswoman said making profit can take several years and the group had a “clear road map”: “Aviation is a long gestation business sector.” The new rules water down a requirement known as 5/20, which barred domestic airlines from flying overseas before being in operation for five years and having 20 aircraft. Now they can fly overseas as long as they deploy 20 aircraft or 20 percent of total capacity in India, whichever is higher. Tata Sons and the two airlines said they would prefer the rules to be abolished altogether. TATA’S RE-ENTRY Tata group, a business empire stretching from Jaguar Land Rover and steel mills in Britain to salt pans and India’s cheapest car, has a long history in aviation. J. R. D. Tata, the group chairman before Ratan Tata, became India’s first qualified pilot in 1929, and set up an airline that was later nationalised as state carrier Air India. Under Ratan Tata, the group sought to snap up Air India in a privatisation process, later aborted. Instead, even as current chairman Cyrus Mistry has sought to wind up some of Tata group’s more ambitious projects, Ratan Tata pulled the group back in with two joint ventures. For his critics, the intervention was too little, too late. In 2013, a year after India liberalised foreign direct investment in aviation, Tata returned, first with AirAsia and then Vistara. “India’s market has only just started and it could provide growth for global aviation for the next 10 or 15 years,” said Kapil Kaul, New Delhi-based chief executive of the Centre for Asia Pacific Aviation (CAPA) consultancy. India is the world’s fastest-growing aviation market, clocking more than 20 percent growth last year, and CAPA expects domestic passenger travel to grow to 500 million by 2035 from 70 million in 2015. Tata group is moving to capitalise on the win. Vistara, which has 11 aircraft, had an original plan to scale up to 20 by June, 2018, but could speed that up. “We do not rule out accelerating the deliveries or procuring more aircraft from leasing firms, manufacturers or, for that matter, from our parent Singapore Airlines also,” Vistara CEO Phee Teik Yeoh said in response to a query. Yeoh said the company was reviewing its international plans. AirAsia is in the process of ramping up its aircraft to 20 from six to meet the criteria, India CEO Amar Abrol said, adding that the airline lobbied hard for the removal of the 5/20 rule. Matt Moulson Authentic Jersey
Airlines are not ‘demons’, says Ashok Gajapathi Raju
Airlines might not be “angels but definitely they are not demons”, Civil Aviation Minister Ashok Gajapathi Raju today said amid concerns over arbitrary hike in airfares and emphasised that carriers have been responsive during crises. Making it clear that there would not be a “simplistic solution” to deal with exorbitant rise in airfares, he reiterated that capping would not be the answer as that would also push the floor prices. To buttress his stance against capping, the minister cited an analysis done last year which showed that only around 1.7 per cent of the tickets sold were in the higher fare bucket. “Caps and floors are very interesting but we should not land up in a situation that pushes up the price of over 90 per cent of passengers to benefit around 1.7 per cent of the passengers,” Raju said in response to a query on whether the government would look at capping airfares. Stressing that the overall objective is to ensure reasonable pricing of air tickets, the minister said airlines have been responsible in keeping fares reasonable during Chennai and Srinagar floods. “They (airlines) might not be angels but they definitely are not demons. We need to work with them and find a solution (for higher airfares). These are problems which do not lend itself to a simplistic solution,” Raju said. Earlier this month, he had ruled out the possibility of capping airfares in the backdrop of passenger complaints of arbitrary tariff hikes, saying competition among the airlines will take care of the problem. When asked about the latest FDI reforms in aviation sector, he said the move would help more players to come into the country. To a query on whether the government would be setting up a Civil Aviation Authority (CAA), Raju said, “You see, I don’t subscribe to changing the name of DGCA. You tell me what you expect this authority to do. If you want me to change the name board, then it is not a good idea.” The previous UPA government had proposed to replace Directorate General of Civil Aviation (DGCA) with Civil Aviation Authority (CAA) having full functional and financial autonomy to give the regulator more teeth. Stephon Tuitt Jersey
Air operator permit policy to be amended for new FDI norms
The government today said it will amend the existing policy for grant of air operator permit (AOP) to bring it in line with its recent decision to allow 100 per cent foreign direct investment in domestic airlines. It would also be “examining” the substantial ownership and effective control (SOEC) norms of the various countries which permit more than 49 per cent foreign direct investment (FDI) in their airlines, Civil Aviation Secretary R N Choubey told reporters on the sidelines of an aviation event here. Under the current norms, AOP or flying licence is granted to a company only if its chairman and two-third Directors are Indian citizens and its substantial ownership and effective control is vested in Indian nationals. “The policy relating to AOP being given, that policy will be completely aligned with the FDI Policy. So if there is something when higher FDI investment is not resulting in AOP being given, then the AOP requirement will be to that extent will be amended,” Choubey said. Foreign investors, barring overseas airlines, are now allowed to have up to 100 per cent stake in local carriers under the recently liberalised FDI norms. Under the new set-up, 49 per cent FDI will be through the automatic route and for anything beyond, government nod will be required. At present, up to 49 per cent FDI is permitted in scheduled airlines. However, foreign airlines, under the norms, canot invest more than 49 per cent in the domestic carriers. The requirement of SOEC comes up at two places– for grant of AOP to an Indian citizen and at the place where India has to grant bilateral rights, he said. “For the purpose of granting AOP, because the FDI limit has been increased, therefore, correspondingly the AOP requirement of substantial ownership and effective control will also have to be aligned with it. That will require amendment,” he said. As far as bilateral rights are concerned, the requirement of SOEC is also a condition from International Civil Aviation Organisation (ICAO) and not of a particular government or country, he said. “All that it means is that if you are having more than 49 per cent then there may be an issue in getting the bilateral rights for flying abroad. But if you wish to fly within the country, then there is no bar,” he said. When asked why an airline with 100 per cent investment from a foreign country will fly only domestic, Choubey replied, “India itself is a huge market. So somebody if wishes to use its domestic market they can do so.” There are also code shares, the rules regarding which have been also liberalised, Choubey said, adding, “If they wish to grow within the country and also take up the code shares, they can do so.” He said the purpose of allowing overseas investors own up to 100 per cent stake in Indian carriers is to encourage investments in domestic operations. To a question whether domestic carriers owned 100 per cent by foreign investors will be allowed to fly international skies, Choubey said, “We are examining whether they can fly abroad. But presently, it appears that ICAO regulations are binding on signatory countries.” “We will examine what other countries who are similarly placed are going in respect of the carriers being allowed to fly abroad and then will take a call,” Choubey said. When asked how would the government ensure that foreign airlines comply with the 49 per cent FDI ceiling, he said, “As part of the approval, a very thorough due diligence will be done to ensure that directly or indirectly foreign airline ownership does not exceed 49 per cent, which is mandated.” Shaun Alexander Jersey
Airlines providing regional connectivity to have simple rules for entry and exit: Aviation ministry
The civil aviation ministry has decided to come up with easy entry and easy exit rules for airlines providing regional connectivity, as it wants to ensure maximum industry participation in a programme that seeks to take flying to the masses. “We do not want a situation where tough exit rules discourage airlines or companies from launching airlines to provide regional connectivity. We will provide an easy entry and easy exit option to operators,” aviation secretary RN Choubey. In the easy exit option, any airline that starts operations on regional routes will be allowed to shut shop and leave if it feels that the operations will not be profitable after a stipulated period of time. The duration will be decided at the time when the route is awarded to a particular airline. These rules are likely to be part of the policy on regional connectivity that will be released within 10 days. Consultancy firm Deloitte is preparing the report for the government. Currently, no such exit rules exist for any other category of airlines. Mitch Richmond Womens Jersey
Majority foreign stake puts curbs on overseas flights
Airlines with a majority foreign ownership will not be allowed to fly on international routes, senior Civil Aviation Ministry officials said on Tuesday. On Monday the government liberalised norms in the sector, allowing foreign investors to own up to 100 per cent stake in domestic carriers. The bilateral air traffic agreements that India has signed with most of the countries have ‘substantial ownership and effective control’ (SOEC) clause which may not permit the airlines with majority foreign ownership to fly abroad from India, a senior Ministry official said. At present, India has bilateral air service agreements with 109 countries. “The SOEC clause is applicable at two places – at the stage of air operators’ permit and for bilateral rights to fly abroad,” said another senior official. The ICAO template on air services agreements says the SOEC norms in bilateral agreements address “potential concerns such as safety, security or other economic aspects including potential emergence of “flag of convenience.” However, the template is not binding and the countries are free to set their own terms. India will have to amend the SOEC clause in its agreement with a particular country for allowing an airline with majority foreign control to fly abroad, an official said. “At present, only a couple of countries that India has bilateral agreements with do not acknowledge the SOEC norms,” the official added. James Develin Authentic Jersey
Curb unfair air fare hikes: House panel
A parliamentary standing committee on consumer affairs has asked the civil aviation ministry to put checks on “abnormal increases” in air fares. The panel took up the issue on Monday following reports of high increase in air fare during the jat protest in Haryana. The panel headed by TDP parliamentarian J C Diwakar Reddy also expressed dissatisfaction regarding the present practice of allowing airlines to increase fare upto 10 times of the minimum. The committee has asked the civil aviation ministry to take the views of consumer affairs ministry while making any policy decision. Sources said that some of the MPs, who are members of the panel, also shared their ordeal and experiences with airlines. The members were unhappy that the airlines have been taking fliers for a ride to make profits and there is a need to regulate them. Tracy McGrady Authentic Jersey