Aviation Soaring to the skies
The aviation sector in India has not had it this good in years. Passengers are taking to the skies in droves. At about 8.1 crore tickets, domestic passenger traffic during January to December 2015 was up more than 20 per cent year-on-year. The pace has only picked up in 2016 — traffic growth until February this year is more than 23 per cent. India is today the fastest growing major aviation market in the world. This stellar growth has been made possible primarily by the deep cut in the cost of aviation turbine fuel (ATF), the largest operating expense for airlines in the country. The rout of crude oil since June 2014 has seen ATF following suit, even if not to the same extent. At ?42,157, a kilolitre of ATF in Delhi today is about 40 per cent cheaper compared with two years back and 15 per cent over a year. This has translated into big savings for airlines. For instance, the country’s largest carrier IndiGo Airlines spent about 17 per cent less on fuel in the nine months ended December 2015 compared with the year-ago period, despite increase in its fleet size. As a result, its fuel cost as a percentage of sales fell to 31 per cent from 45 per cent a year ago.
Indian airports received 4% more international travellers from January to March
Indian airports collectively received 4% more international travellers in January to March this year, with the leisure segment driving growth by 7%, a latest study said. The study, conducted by GfK-ForwardKeys, said comparing the first three months of this year with the same period last year, all top ten inbound tourism markets for India witnessed strong growth. International visitors from the US, Saudi Arabia and United Kingdom form the top three inbound markets for the country, accounting for 37% of the total market in the first quarter of the year. “The ICC T20 World Cup which took place in March could have been a key driver of growth in the country’s tourism in the first quarter of the year,” highlighted Anant Jain, travel and hospitality industry lead, India. “There was 10% surge in tourist arrival in March this year compared to a year ago and we believe this was contributed by sports tourism to a large extent.” The four airports in Delhi, Mumbai, Bangalore and Hyderabad together contribute to over half of all travellers’ arrival in India. Current booking for the second quarter of this year showed that overseas visitors arriving at these airports are anticipated to be slower than last year, except for Bangalore, where there is already a 5% expected increase in arrivals.
Singapore’s Changi Airports International to ‘continue to explore’ Indian airport projects
Singapore’s Changi Airports International (CAI) today said that it will “continue to explore” opportunities in airport projects in India, days after its discussions with national airports operator AAI to operate and maintain two airports was terminated. “As an airport investor, manager and consultant, CAI will continue to explore opportunities in airport projects in India where we can add value and where there is a strong fit with our global strategy,” CAI spokesperson See Ngee Muoy said. CAI, an investor, consultant and manager of airports around the world, is a subsidiary of Changi Airport Group, which runs Singapore’s Changi Airport. Queried about the collaboration between CAI and AAI to operate and maintain Ahmedabad and Jaipur airports, See told Channel NewsAsia that both parties were not able to come to an agreement on the commercial terms of the proposal, hence they have decided not to proceed with the project. A senior Indian official close to the development said on Wednesday that AAI’s decision comes after its assessment that Changi Airport’s proposal would not be commercially viable. In January, Singapore Cooperation Enterprise (SCE) had nominated CAI as an expert party to cooperate with Airports Authority of India (AAI) on the maintenance of Ahmedabad and Jaipur airports. A Memorandum of Understanding was signed between SCE and AAI in November last year. Some of the areas of joint interest as outlined in the MoU included master-planning and design, traffic and commercial developments, service quality improvement and cargo handling and management. In 2015, Changi Airport handled a record 55.4 million passengers and was voted the World’s Best Airport for the fourth year in a row.
It is time for India to end patronage in aviation: AirAsia
AirAsia today asserted that effective control of its joint venture AirAsia India is with Indian parties and said “vested interests” were trying to prevent the local no-frills airline from offering competitive service and fares. The assertion comes amid concerns expressed in various quarters about effective control at the low cost airline AirAsia India – jointly owned by Malaysia-based AirAsia Bhd and Tatas. AirAsia Group CEO Tony Fernandes said it is time for India to end patronage and put people first and emphasised that Prime Minister Narendra Modi-led government has promised fairness and transparency. According to AirAsia, a provision in the brand license AirAsia India and AirAsia Bhd explicitly states that substantial ownership and effective control of the licensee remains at all times with Indian residents. “We are shocked and surprised by the unprecedented opposition we continue to face in the Indian market from vested interests that are determined to find any reason or argument to block us in our endeavour to offer Indian consumer the most competitive service and fares,” AirAsia said in a statement today. It reiterated that AirAsia India’s majority ownership and effective control are with Indian parties as per regulations. “All the important decisions concerning the day-to-day operations of the airline are taken by the management team of the airline under the overall supervision, control, and direction of the board of directors (which include a majority of Indian nationals),” the statement said. Meanwhile, Fernandes said the “constant attack on AirAsia, especially by certain members of media has saddened me but we will prevail. It is time for India to end patronage and put people first”. Last month, Tata Sons said it would hike its stake in AirAsia India to 49 per cent by buying additional shares from Arun Bhatia’s Telestra which would be exiting the airline. Telestra Tradeplace had around 10 per cent stake. While Tata Sons would buy 7.94 per cent shareholding, the remaining stake would be purchased by the carrier’s two directors – S Ramadorai and R Venkataramanan – in their individual capacities. Post deal, Tata group and Malaysia’s AirAsia Bhd would have 49 per cent stake each in the no-frills airline. Meanwhile, Fernandes today also said Modi government has promised fairness and transparency and having met the Prime Minister, “I am even more excited about our future in India”. “My father was a proud Indian and of all the things that I have done, nothing would have made him prouder than what we are trying to achieve in India. AirAsia is about creating jobs and enabling people to do things they never ever thought possible. We made Asia smaller. That’s all we want to do in India,” he noted.
New plane gives flying school enough tailwind
In the hangar of the Government Flying Training School (GFTS) in Jakkur, one aircraft stands apart from the vintage Pushpak and Tiger Moth. A spanking new Cessna-172S, the first aircraft the school acquired after it reopened in 2012, seems to signal the resurrection of this flying school. The school is now making do with three aircraft -one Cessna-172P Skyhawk and two Cessna-152 -all of which are over 35 years old. It has 31 students and could not admit more because of the Directorate Geeneral of Civil Aviation (DGCA) rule that requires a student, instructor, aircraft ration of 10:1:1. With the new aircraft, the school can now hire an additional instructor and also raise its student strength to 40, a figure last achieved a decade ago. The school, the only fully government-owned one in the whole of souther n India, was established on March 26, 1949 on 216 acres of land that was earmarked for the Jakkur aerodrome by the Maharaja of Mysuru before Independence. It remained shut from 2007 as the government did not appoint a chief flight instructor. Captain Amarjeet Singh Dange, who took over as the chief flight instructor (CFI) in November 2012 and pressed for the purchase of the new Cessna, hopes to augment his fleet with another aircraft in the next financial year. “That will also probably be a Cessna as the school has a setup for Cessna aircraft. Buying a Cirrus, Tecnam or a Diamond would involve building a new setup for them,” Capt Dange said. Since he took over, the new CFI had a modern Air Traffic Control constructed for the school. The additional advantage of the new aircraft, bought at a cost of `3.34 crore, is its glass cockpit with digitised controls, as opposed to the older ones which have manual controls. “Since the industry uses digitised controls today, we get trained on both types of machines which is a great exposure,” said Kaavya R, who is studying for her Commercial Pilot Licence (CPL) on a scholarship. She is among the first batch of students who joined in August 2013 after the school reopened. The school charges `10,000 per hour of flying training per student.The total cost of the course could come up to approximately `20 lakh, considering the mandatory 200 hours of flying required before one obtains a CPL. The school receives an annual grant of `1 crore from state government. Fortyeight-year-old Krishna Durba, who is studying for his licence, says, “Yes, the school was shut for some time but now it is open and fully functional.”
Airports Authority of India asks GoAir to pay Rs 15 crore of dues
National airports operator AAI has asked Wadia Group airline GoAir to pay at least Rs 15 crore by Monday following its dues going up by more than its bank guarantee amount of over Rs 30 crore. Airports Authority of India (AAI) has served the notice to GoAir in this regard, asking it to pay the amount by April 18, a source privy to the matter said. GoAir’s dues at present stand at Rs 45 crore, while its bank guarantee is for a little over Rs 30 crore, the source said. “The AAI has asked the airline to bring down this outstanding amount to below Rs 30 crore and make payment of Rs 15 crore within the next five days,” the source said. The Mumbai-based no-frills carrier has accumulated these dues to AAI on account charges relating to route navigation, landing and parking at its airports. When contacted, the airline said it has always ensured to be within prescribed guidelines of the AAI on payment schedule. “GoAir has a robust process and mechanism to manage dues with AAI. As a business practice we are always in constant communication with AAI in all business-related matters and we ensure to remain within prescribed guidelines,” airline spokesperson said in a text message response. Mike Cammalleri Womens Jersey
AAI calls off talks with Singapore agency on Ahmedabad, Jaipur airports
National airports operator AAI has terminated discussions with a Singaporean government agency to operate and maintain Ahmedabad and Jaipur airports, a proposal which was mooted during Prime Minister Narendra Modi’s visit to Singapore last November. Airports Authority of India’s (AAI) decision comes after its assessment that the Changi Airport’s proposal would not be commercially viable, a senior official close to the development said. With regard to Ahmedabad and Jaipur airports, AAI had signed a memorandum of understanding (MoU) with Singapore Cooperation Enterprise (SCE) during Modi’s visit to the island nation. In January, the Union Cabinet had also given its ex-post facto approval to the MoU. According to the official, AAI held discussions with people from Changi Airport but could not reach “mutually agreeable terms”. SCE had nominated Changi Airport for the proposed project. Changi Airport Group (Singapore) Pte Ltd runs the Changi airport in Singapore. As giving the operation and maintenance of the two airports to the Singapore entity would not be “commercially viable”, AAI has decided not to go ahead with the proposed collaboration, the official said. In this regard, AAI has written to the Singapore entity concerned, he added. Queries sent to AAI acting Chairman in-charge S Raheja on the issue did not elicit any response. According to the official, AAI would float a fresh tender to select entities through competitive bidding for operation and management of Ahmedabad and Jaipur airports. Under the MoU, both parties were to cooperate in planning and development of Ahmedabad and Jaipur airports besides other aspects including traffic and commercial development, service quality and operations and management. Globally, limited O&M (Operation & Maintenance) contract models are prevalent for the entire airport operations, the statement said, adding the AAI has no previous experience in awarding O&M contract model of terminal buildings to other entities. In order to implement the decision, it was necessary to ensure that a suitable entity be engaged for undertaking the O&M contract at Ahmedabad and Jaipur airports, the statement said. During 2014-15, Ahmedabad airport handled 5.05 million passengers, out of which 1.22 million were international travellers. In the same period, Jaipur airport saw 2.20 million passengers and out of them, 0.33 million were overseas people. Anthony Barr Authentic Jersey
Swamy demands cancellation of AirAsia India permit
A media report on Tuesday said AirAsia India is controlled by its Malaysian share holder (AirAsia Malaysia), in alleged contravention of foreign direct investment norms. While the civil aviation ministry has not responded, Tata Sons (which, along with its executives, owns 51 per cent in the airline) denied any violation of norms. However, the revelations have come as ammunition for Bharatiya Janata Party leader Subramanian Swamy, who has been fighting a legal battle against the airline since 2013. “I will write to the ministry and the Prime Minister’s Office, demanding scrapping of the permit granted to AirAsia India,” Swamy stated. On Tuesday, Mint pointed out that a brand licensing agreement allows AirAsia Malaysia to exercise control on virtually all aspects of operations of AirAsia India. The agreement, the report said, was signed between the two entities in 2013 and gives the Malaysian partner the influence and control over key functions such as ancillary revenue, branding, revenue management engineering, finance, among others. At the heart of the controversy is a government rule which states “substantial ownership and effective control” of an airline should vest with Indian nationals.
All the Rituals Couldn’t Save Air India’s ‘Baby’ from ‘Evil’
All that Air India wanted to do was save its 20-year-old ‘baby’ from turning into a useless scrap. To ‘protect’ the baby from evil eyes, priests were called in who broke hundreds of coconuts, lengthy religious rituals (one and a half hours to be precise) were conducted before the ‘baby’ finally took its first step. But despite all the efforts, the ‘baby’, Air India’s Airbus A-320 aircraft, is now reduced to scrap which will now fetch Air India about Rs 3 lakh! Express spoke to an Air India official who, on condition of anonymity, explained in detail as to what went behind the scenes in transporting the defunct aircraft by road from the Begumpet airport to the Central Training Establishment at Ferozguda in Balanagar and how the plane flopped on the Airport Authority of India’s club house compound wall after the crane broke on Sunday. On the D-day, priests were brought in, hours of religious rituals were conducted, hundreds of coconuts were broken to protect the aircraft from evil eyes, and finally the craft took its first step at about 9:00 pm on Saturday night. “Proper trials were conducted and permissions had been taken and everything was set in motion to move the aircraft,” the official added. The plane, which was to be transported for a distance of 7.5 km to its destination, faced its first hurdle when the belt of the crane was broken inside the airport premises after travelling for a couple of kilometres. “Contrary to the reports in several newspapers, the plane was supposed to cover a distance of seven and a half kilometres. During the trials, more concentration was paid on bringing the plane till the club house as we thought it would be easier to move it on a well-laid road. Inside, it was full of ups and downs and no major problem was faced expect for the breaking of the belt,” the official said. After replacing the belt with a new one, the journey resumed and by 4 am, the aircraft was taken to the club house on the Old Bowenpally Road. It had to wait for an hour for the electricity employee to reach the place and disconnect the power supply so that the crane could move forward. “Once power was disconnected, the crane operator struggled for hours to balance the plane in the air. The wind was heavy and with every passing minute, it became even more difficult to get control over the plane. Had something like this happened inside the airport premises, we would have aborted the mission. It would also have been easy for us to halt the aircraft. Here, there was no chance of bringing the aircraft on ground as there was a wall on both sides.” At around 7 am, the crane gave in and dropped the aircraft hull on the compound wall of Air Authority of India’s club house.
MoCA moves aviation policy for inter-ministerial consultations
After months of discussions with various stakeholders, the Ministry of Civil Aviation has put up the revised draft aviation policy for inter-ministerial consultations. The development is a step forward in finalising the new civil aviation policy, whose draft was unveiled by the Ministry back in October 2015. To tap the high growth potential of the countrys aviation space, the proposed policy has suggested a slew of measures including strengthening regional connectivity and tax incentives for airlines. A senior official said the Ministry moved the draft Cabinet note on new civil aviation policy for inter-ministerial consultations last Friday. Without providing any specific details, the official said comments on the policy are expected from various ministries, including Defence and Home, in a couple of weeks. After receiving the responses, the Ministry would move the Cabinet for final approval, he said.