‘Many flaws in Mumbai airport PPP’
The PAC has pulled up the Civil Aviation Ministry and the Airports Authority of India over several lacunae in the public-private-partnership at Chhatrapati Sivaji International Airport, Mumbai. The main grievance of the panel is that the entire contract was drafted to help the private partner, the Mumbai International Airport Private Ltd, of which, GVK is the main shareholder. On airport development fee (DF) , the panel said the Airport Economic Regulatory Authority is competent to fix it and it expects the regulator to determine the DF in future keeping in view the revenue interest of the Centre in PPP projects and also the interests of passengers. The panel expressed surprise while noting that instead of looking at debt and equity contributions, the Civil Aviation Ministry allowed MIAL to levy DF at the airport for funding/financing the cost of up-gradation and expansion/development of the airport in contravention of the provisions of the OMDA (operation, management and development agreement). The committee also said that neither the OMDA nor the lease deed signed between AAI and MILA demarcated and defined the specific details of the leased land. The report said AAI did not have up-to-date land records. It said the MIAL gained 10.23 acres of additional exploitable land. “The revenue from these activities would not be considered for determination of airport charges,” the report added. The committee noted that on account of cross alignment of the two runways, airport has a design constraint. Ryan Carpenter Authentic Jersey
Mangaluru airport handles 1,650 tonnes of domestic cargo in 2015-16
Mangaluru International Airport handled 1,650 tonnes of domestic cargo in 2015-16. The airport commenced domestic cargo handling operations on June 26, 2015. A press release by JT Radhakrishna, Director, Mangaluru International Airport, said on Thursday the airport handled 1,650 tonnes in the nine months to March 31. He said the airport expects to handle 2,500 tonnes of domestic cargo during the current financial year. Mumbai-based Cargo Service Centre handles the domestic cargo operations at the airport on behalf of the Airports Authority of India. The airport handled around 560 tonnes of international cargo in 2015-16. Radhakrishna asked the trade and industry bodies to use the cargo handling facilities at Mangaluru for exports and imports within the country and to other nations. Jordan Akins Womens Jersey
Chennai airport records 12% growth in passenger traffic
Chennai airport achieved a 12 per cent growth in passenger traffic and a 9 per cent increase in cargo handling during 2015-16 despite the ‘devastating’ effect on its operations due to floods in December, said Chennai Airport Director Deepak Shastri. In 2015-16, the airport handled 15.3 million passengers as against 13.7 million in the previous year. Cargo handling was 200,000 tonne as against 184,000 tonne in the previous year. “We exceeded the target for the fiscal set by the Aviation ministry,” he told Business Line. Last December. the airport was flooded with water from the Adyar River that passes under the second runway. The airport, which witnesses over 350 flight movements every day, had to be shut down for four days from the night of December 2. The flooding had a devastating effect with the airport cancelling 66 arrivals and 53 departures late on December 2 and early December 3. On December 8, the airport was fully operational. Secondary runway On the secondary runway getting approval for 24-hour operations, Shastri said it would increase aircraft movement to 35 per hour from the present 29 moves per hour. It started operations in May 2014 but has so far handled operations only during daytime. Shastri said the airport needs additional 14-16 acres to have more space to handle wide-body aircraft. At present, the runway can handle A320 type aircraft. Anthony Duclair Womens Jersey
Air India losses to come down to Rs 2,636 cr: Government
National carrier Air India is expected to trim losses by more than half to Rs 2,636 crore in the 2015-16 fiscal as compared to a net loss of Rs 5,859.91 crore in 2014-15, the government said today. “With regard to Air India Limited, it is likely to suffer a total net loss of Rs 2,636 crore in 2015-16,” said Minister of State for Civil Aviation Mahesh Sharma in a written reply in Lok Sabha. Sharma said the airline has been facing losses in the past years due to multitude of factors. He said high interest cost and airport charges, increasing competition, particularly from budget carriers, coupled with exchange rate variation due to weakening of Indian rupee are reasons for the carrier’s estimated net loss (of Rs 2,636 crore) during 2015-16. Air India had reported losses of Rs 5,859.91 crore in the fiscal ended March 31, 2015. The national carrier was given a Rs 30,231-crore lifeline by the Finance Ministry in 2012 under a turnaround plan stretching over a period of nine years to keep it afloat. This equity infusion also includes the financial support towards repayment of principal as well as interest on government-guaranteed loans taken for aircraft acquisition by the airline. As per the 2012 Turn Around Plan (TAP), the government will infuse Rs 18,929 crore for repayment of government- guaranteed loans/interest till FY 2010-21, Sharma said. The minister also informed the House that till March this year, the government has already infused Rs 22,280 crore into the carrier as part of the bailout package. Air India has also discharged of all its aircraft loans and interest liabilities by the last fiscal, he said, adding that the government has already approved Rs 1,713 crore equity infusion into the carrier for the current fiscal in line with TAP. Antonio Brown Jersey
5/20 rule ‘anarchic’, trying to change it: Civil Aviation Minister Ashok Gajapathi Raju
Terming the 5/20 rule which allows Indian carriers to fly abroad as “anarchic”, Civil Aviation Minister Ashok Gajapathi Raju today said he was trying to change it so that new airlines can connect with foreign destinations. Raju said in Lok Sabha the government wants more Indian airlines to fly to foreign destinations but as long as the 5/20 rule is not changed, they cannot fly abroad. The rule entails that an airline can fly to international destinations only if it has served within the country for five years and has a 20-aircraft fleet. “The more the merrier. It is a fact that 5/20 rule came from a particular Cabinet at a particular point of time. To my mind, it is an anarchic type of thing. It prevents the Indian registered airlines to function. But as long as that rule is there, we have to follow it. “I am trying to change the rule and if I have my way, it will happen,” he said during Question Hour. Raju’s reply came when Congress member Shashi Tharoor said the Kerala government had tried to set up a state airline called ‘Air Kerala’ to cater to the vast amount of traffic of Keralites going to Gulf countries since private carriers were exploitative, but could not do so due to the 5/20 rule. “It is our duty to see that people are not exploited. In fact, airfares before 1994 were controlled by the Government. Airlines before that had to apply and take government approval. In 1994, the Act was repealed by Parliament,” the Minister said. BJP member R K Singh too joined Tharoor saying private airlines often exploit passengers taking emergency situation which government must check. “Whenever there is an emergency situation, the airlines hike the fare and exploit people. This is nothing but exploitation and if the government keeps watching this happening then what is the use of having a government,” Singh said. The Minister said government has analysed the entire issue and found that the high side of the fares in the total ticketing is about less than two per cent. “So, we realise that the prices of tickets have come down in most routes, particularly where the competition is more. What is bothering us is where the competition is less, airfares are a bit high. We need strategies to increase capacity there,” Raju said. He said capacities and growth in the country have been going up. If the growth is stifled, the problem will not be resolved. “With regard to emergencies like Chennai floods, Srinagar floods or the Jat agitation and all that, we do see these things coming up and we give advisories to the airlines and some of the airlines do respond,” he said. Darren Helm Authentic Jersey
Hyderabad airport eyes Aera nod for expansion in a few months
The GMR Group-operated Rajiv Gandhi International Airport is awaiting regulatory nod to begin second phase of expansion of the terminal, which has already reached its capacity of 12 million passengers. “We expect the regulatory (Airport Economic Regulatory Authority) nod in a few months to begin work on the second phase of expansion. We already handled 12.5 million passengers last fiscal, which is above our installed capacity of 12 million. So, there is an urgency to have new capacities,” CEO SGK Kishore told PTI here. “The first leg of the second phase of expansion will take the annual capacity to 18 million (hopefully by FY19, depending on how soon the nod comes) and 20 million in the second leg. We need 18-20 months to complete the project.” The third phase is expected to take the capacity to 40 million. He refused to share investment details, saying it has to be okayed by the regulator. He also did not share any fund-raising plans to finance the expansion. Located 20 kms off the city at Shamshabad, the airport was completed in a record 31 months for Rs 2,478 crore and commissioned in March 2008. “In the next five years, we will be expanding in phases. After the expansion, we will have a bigger terminal facility, more security lanes, more check-in counters and rooftop solar panels. As our growth is steady, we are expecting to reach 20 million passengers in the next five years,” said Kishore, a Kerala-cadre IAS officer. With over 12.5 million passengers, the greenfield airport is already the sixth-largest airport in the country with two runways, which are the second-largest in the country. On his outlook over traffic growth, he said that while growth was 20 per cent in 2015-16, a high double-digit growth is likely to continue this year as well, but refused to quantify. In 2014-15, the growth was higher at 22 per cent at 10.5 million. Cargo grew at 11 per cent in 2015-16. Of the total passengers, one-third are international ones.
Civil Aviation Ministry gives ‘site clearance’ for four airports this year
The Ministry of Civil Aviation has given in-principle approval for a greenfield airport in Gujarat as well as site clearance for four airports in Andhra Pradesh and Rajasthan this year. Minister of State for Civil Aviation Mahesh Sharma said various proposals have been received for setting up greenfield airports in many states including Maharashtra, Uttar Pradesh and Madhya Pradesh. In a written reply to Rajya Sabha, he said, this year, the ministry has granted ‘in-principle’ approval for setting up a greenfield airport at Dholera in Gujarat. Besides, ‘site clearance’ was granted in January for greenfield airports at “three locations in Andhra Pradesh namely Dagadarthi Mendal in Nellore, Bhogapuram in Vizianagaram and Oravakallu in Kurnool and one location in Rajasthan namely Bhiwadi in Alwar”, Sharma said. According to him, a decision has been taken to close the existing Vishakapatnam airport for civilian operations once the new airport at Bhogapuram becomes operational. Under the Greenfield Airport Policy, 2008, funding of the projects is the responsibility of individual developers. The minister said that proposals have been received for having greenfield airports at various locations. These include “Sholapur and Bolera (Amrawati) in Maharashtra, Annakara (Idduki) in Kerala, Dwarka in Gujarat, Gwalior and Singrauli in Madhya Pradesh, Androth in Lakshadweep, Kothagudem (Khammam) in Telangana, Jewar in Uttar Pradesh and Chingleput ( Chennai) in Tamil Nadu,” he noted. Trevor Siemian Authentic Jersey
Air India expects ‘modest operating profit’ in FY16: Mahesh Sharma
Air India, which has seen its operating loss fall consistently in the past few years, expects to post a “modest operating profit” for the just- concluded fiscal, Union Minister Mahesh Sharma said today. The national carrier is implementing a turnaround plan under which it is to get an equity infusion of Rs 30,231 crore up to 2021 subject to achieving certain milestones as laid out in the plan. “The operating losses of Air India have consistently reduced and 2014-15, the same stood at Rs 2,636.19 crore as compared to Rs 5,138.69 crore in 2011-12,” Sharma, who is the Minister of State for Civil Aviation, said in a written reply to Rajya Sabha. For the first time since merger of Air India and Indian Airlines in 2007-08, “Air India is expected to earn a modest operating profit during 2015-16”, he noted. To a query on whether it is a fact that the government is planning to constitute a committee to look into the possibility of disinvesting 49 per cent stake in Air India, Sharma replied in the negative. In a separate reply, Sharma said Air India shelled out Rs 18.46 crore towards advertisement and publicity in 2014-15 fiscal. During the same period, the expenditure on passenger amenities stood at Rs 722.54 crore. Leonard Fournette Authentic Jersey
Boeing awards 777X titanium forgings contract to Bharat Forge
Jetliner maker Boeing has announced that it is awarding a contract for titanium forgings for the 777X to the Pune-based forgings maker Bharat Forge (BFL). The forgings will be developed and manufactured by BFL using a closed die forgings process, Bharat Forge said in a statement to the BSE. The first two forgings are scheduled to be shipped to Boeing in late 2016 and will be followed by two more forgings in early 2017. Earlier this year, Bharat Forge began supplying titanium forged flap tracks for the Boeing Next Generation 737. It will also supply forgings for the 737 MAX scheduled to enter service in 2017. “We are pleased to expand our partnership with Bharat Forge. They have demonstrated not only a high level of technical expertise, but also an understanding of the need to meet market requirements for affordability,” Pratyush Kumar, President, Boeing India, said. Subodh Tandale, executive director, BFL, added, “We are well versed in the stringent process requirements for titanium forgings and have mastered the process. We will be supplying critical wing components for one of the most advanced Boeing aircraft.” LeGarrette Blount Authentic Jersey
Airlines asked to help flyers fill up customs form onboard
All airlines operating flights from international destinations to India have been asked to help flyers bringing dutiable goods fill up customs form onboard. The move, customs officials say, will check delay in payment of duty by such passengers and help in zeroing in on smugglers. As per rules, which came into effect from this month, incoming passengers not carrying dutiable goods will not have to fill up customs declaration form. Earlier all passengers coming to India were to fill up these declarations. “We have asked airlines to help passengers in filling up customs form onboard. They have been asked to make flyers aware that those carrying dutiable goods have to fill up the form,” said Vinayak Azaad, Additional Commissioner of customs at Indira Gandhi International Airport here. He said this will reduce the paper work customs department had to do earlier. “There will be comparatively less number of customs forms for analysis by the officers. It will also ensure effective enforcement of customs law and to check any possible evaders,” he told . Finance Minister Arun Jaitley, while presenting the Budget for 2016-17, had announced new customs measures. Following which the monetary limit for Indian passengers coming from any foreign destination, excluding Nepal, Bhutan and Myanmar, was increased from Rs 45,000 to Rs 50,000. The duty free allowance for people coming from Nepal, Bhutan and Myanmar has been increased more than two times to Rs 15,000 from Rs 6,000 with effect from April 1. Passengers from China can no longer bring goods duty free into India. Earlier they were able to bring duty free goods of Rs 6,000. The increase in allowance is applicable for journey by air. Those coming to India from land borders will not be able to get any amount of free allowance, as per the new rules. The duty free allowance for foreigners has also been increased to Rs 15,000 from the earlier limit of Rs 8,000. Mark Sanchez Womens Jersey