PIL urges stay on test flights near HAL airport
The Karnataka high court has adjourned the hearing to Wednesday with regards to a PIL seeking a stay on all experimental and test flying in the vicinity of HAL airport. The PIL, filed by city advocate N P Amrutesh , apart from seeking regulations and alternative venue for test flying, also seeks for setting up of an appropriate authority to issue NOCs with regard to construction around HAL airport. In support, the PIL cites the order of a single bench highlighting that there is humongous risk to all inhabitants surrounding the unique defence aerodrome.
SpiceJet raises cancellation, rescheduling charges
A day after IndiGo raised cancellation charges on air tickets, SpiceJet announced to raise cancellation and rescheduling charges from April 7, 2016. The cancellation charges for domestic tickets has been increased from Rs 1,899 to Rs 2,250 and for international tickets have been raised from Rs 2349 to Rs 2,500. The announcement by SpiceJet comes a day after IndiGo’s announcement to raise cancellation charges to Rs 2250 for domestic fliers. Earlier, they charged between Rs 1250 and Rs 2250 depending on time of cancellation of ticket. The higher charges by IndiGo are with effect from April 1, 2016. Travel agents expect other airlines too will raise charges. Steep hike in cancellation charges by airlines have been inquired into in the past by the Directorate General of Civil Aviation, which had last year said that it decided to probe the sharp hike in ticket cancellation charges by airlines, as they had found the charges ‘unreasonable’ then.
Aviation policy likely to be cleared by Cabinet this month
A degree of “consensus” among various stakeholders on issues in draft civil aviation policy including norms for international flying by domestic airlines has “emerged” and it is likely to be approved by the Cabinet this month, a top official said today. “(As far as) 5/20 and other issues raised in the draft civil aviation policy (are concerned), a degree of consensus has already emerged,” Civil Aviation Secretary R N Choubey told reporters on the sidelines of the 29th anniversary of Bureau of Civil Aviation Security (BCAS). Under the ‘5/20 rule’ only those airlines having at least five years of domestic flying experience and a minimum of 20 aircraft are allowed to fly overseas. BCAS is country’s nodal aviation security agency. Choubey said that his ministry will be taking the matter to the Cabinet this month itself, adding, “the (new aviation) policy, which will also clear the position on 5/20, will be approved this month.” The draft policy was unveiled in October last year and since then Government has held extensive consultations with various stakeholders including ministries, airlines,airport operators, ground handling agencies, among others during this period. We have already done a couple of rounds of inter ministerial consultations. We will now be in a position to take the matter to the Cabinet this month,” he said. The policy was expected to be finalised in the previous financial year as certain proposals were to be implemented from April 1, 2016. While startup carriers Vistara and Air Asia India, where Tatas is a stakeholder, are demanding that the 5/20 rule be done away with, the grouping of four private Indian carriers comprising IndiGo, SpiceJet, Jet AirwaysBSE 3.56 % and GoAir wants the rule to continue. The proposed policy seeks to give a boost the Indian aviation sector, which has high growth potential, and strengthen regional connectivity. It has suggested tax incentives for airlines, maintenance and repair works of aircraft besides mooting 2 per cent levy on all air tickets to fund regional connectivity scheme. There are other significant proposals such as increasing FDI limit for foreign airlines, setting up of no-frills airports and providing viability gap funding for airlines to bolster regional air connectivity as well.
Cooking gas LPG down Rs 4 per bottle, jet fuel price up 8.7%
Aviation Turbine Fuel (ATF), or jet fuel, price was today hiked by 8.7 per cent but that of non-subsidised cooking gas LPG was cut by Rs 4 per cylinder on global trends. ATF price in Delhi was raised by Rs 3,371.55 per kilolitre (kl), or 8.69 per cent, to Rs 42,157.01 per kl, oil companies said today. The hike comes on the back of a marginal 1.3 per cent or Rs 515.85 cut in rates on March 10. Prior to that, rates were hiked by steep 12 per cent, or Rs 4,174.49, on March 1, almost neutralising a Rs 4,765.5 cut on February 1. The March 1 hike broke the cycle of three consecutive monthly price reductions. Rates vary at different airports because of differential local sales tax or value-added tax (VAT). Jet fuel constitutes over 40 per cent of an airline’s operating cost and the price increase will add to the financial burden on cash-strapped carriers. No immediate comment was available from airlines on the impact of the price increase on passenger fares. Simultaneously, the oil firms cut prices of non-subsidised LPG, which consumers buy after exhausting their quota of 12, by Rs 4 per 14.2-kg bottle. Non-subsidised cooking gas (LPG) now costs Rs 509.50 in Delhi as against Rs 513.50 previously. This is the third reduction in rates in a row. Prices were last cut by Rs 61.50 on March 1. Rates were reduced by Rs 82.5 per 14.2-kg bottle on February 1. Subsidised LPG costs Rs 419.33 per 14.2-kg cylinder in Delhi. The three fuel retailers – Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum – revise jet fuel and non-subsidised LPG prices on the first day of every month, based on the average international price in the preceding month. The ATF price cut on March 10 was on account of change in taxation.
Kempegowda airport, a big draw for retailers
Kempegowda International Airport, Bengaluru, which witnessed a 25 per cent growth in traffic in 2015 with 18.1 million passengers, has witnessed record sales in 27 of its retail brand outlets. According to a spokesperson of Bangalore International Airport Ltd (BIAL), some of the outlets have become the number one or number two selling outlets in the country. The airport welcomed its 100 millionth passenger on March 18. Puducherry headquartered leather accessories brand Hidesign has its number one store in terms of sales and profitability at the airport; Fabindia’s store that sells only garments and accessories and no furniture, is the company’s number 1 store in terms of sales per sq metre; the Subway store is the largest selling outside the US, with 8,500 subs being sold per week; Shopper Stop’s fragrances store Arcelia is its number 1 store for fragrances in India beating its Mumbai store in Malad; and Levis records its highest sales in the country at the airport. Stating that Bengaluru is a very profitable city for retailers, Qubra Khan, Regional Head of Hidesign, told BusinessLine that the store in the Kempegowda International Airport notches an average selling price of ?5,000. “Bengaluru is an IT and Pharma hub and professionals at the manager and above levels who travel from these two sectors receive attractive travel allowances which they liberally spend on impulse buys at the airport. Then there are other factors such as, lower rental and staff costs in Bengaluru and the demographic profile of passengers from the city who are well traveled, discerning and cosmopolitan which contributes to this store becoming our number 1 store in the country in sales and profitability” she said. Handicraft and Heritage store, The Lotus House, which has 10 stores in airports and malls pan-India, has recorded its second highest sales in Kempegowda irport. Mala Paropkari, CFO, The Lotus House — Adaa Traders Pvt Ltd said “Our Mumbai airport store records the highest sales only because it attracts higher footfalls, if Bengaluru had higher footfalls, it would have been our number 1 store.” Café Coffee Day, which has 1,586 cafes, recorded its highest sales at the Bengaluru airport until last week. This week, one of its Delhi outlets has taken up the pole position, said the BIAL spokesperson. Jewellery brand C Krishniah Chetty has a presence, the popular Mysore Silks will soon open a store there and regional delicacies such as, bisibelebath, akki rotti and mysore pak are available at restaurants. “As the Gateway to South India, we try to see how the airports offering can be unique to the South Indian experience for every traveller, so that he or she can take back memories of South India in a new and refreshing way. Our approach is 85 per cent local” said GV Sanjay Reddy, Managing Director, BIAL.
Govt has no plans to divest stake in Air-India: Civil Aviation Secy
The Government has no plans to divest its stake in Air India, R.N. Choubey, Secretary, Civil Aviation, said on Friday. “Currently there is no move for divestment of Government stake in Air India,” Choubey told newspersons on the sidelines of the 29th anniversary of the Bureau of Civil Aviation Security. While sections in the Government are said to be in favour of divesting Air India so as to raise funds, there are others who feel that this is not the right time to divest a stake as the airline has reported losses for several years and the Government will not be able to get a good price for its asset. Asked to comment on the decision of domestic airlines to stop flights to four airports including Mysuru, the Secretary pointed out that there were different traffic demands during different times of the year. Bhavnagar, Porbandar and Nanded are the other airports to which domestic airlines have stopped operating flights in the summer schedule, which came into effect on March 27 this year. “In (the) winter schedule (there) is much higher demand while in the summer schedule demand is much lower. This is a normal phenomenal. It is not as if four airports have been taken off the air map. Many more airports will be added during the winter schedule. The regional connectivity scheme, which the Government is working on as part of the civil aviation policy, is meant to answer the issue,” Choubey said. The Secretary expressed confidence that the civil aviation policy will be taken to the Cabinet for its approval this month. The policy has been in the works since October last year.
Only aviation companies can fly with Kingfisher logo, warns United Breweries
Beermaker United Breweries has said the Kingfisher logo that belonged to Kingfisher Airlines can only be used for aviation and warned of legal challenges if it is used in other categories. In the first official comment on the issue after the banks’ decision to auction the logo, United Breweries, the maker of Kingfisher and Kalyani Black Label beers, said a buyer will be able to use the logo only to set up another airline and for nothing else. Using the logo for any other purpose will be legally challenged by UB since it holds exclusive rights to the brand, the company warned. Lenders to Kingfisher Airlines had called for bids for the logo in a public notice on March 29 as part of efforts to recover dues of more than Rs 9,000 crore. The public notice specified that the logo belonged to the airline and would be sold with other trademarks such as Fly Kingfisher, the logo of the Flying Bird Device and the word mark ‘Fly the Good Times’. The logo and the name Kingfisher, associated with the popular brand, were also used by the airline company when Vijay Mallya pushed his group into aviation in 2007. The airline’s logo is slightly different from the beer logo but it is not very obvious and UB officials feel the scope for mischief is high in case the buyer happens to be a rival beer or alcohol manufacturer. UB Managing Director Shekhar Ramamurthy told ET that the Kingfisher mark belongs to United Breweries Limited. “We also have exclusive rights to the Kingfisher trademark in a few other categories such as merchandising material, clothing, etc. The trademark that is being put up for sale by SBI (State Bank of India) is for the airline category only. Any prospective buyer cannot use it in any category where we have exclusive usage rights,” he said. UB officials said the company is not responsible for or connected to any guarantees made by United Breweries Holdings owned by Mallya. “The lenders need to do their homework before the public bids,” another UB Group official said. “They have to tell possible buyers what they can do with that logo and brand. We will legally challenge plans for any other category.” Bankers are not very enthused about the sale of the Kingfisher brand and trademark, which will go under the hammer on April 30 for a reserve price of Rs 366.7 crore. “We are not expecting any bids at the auction, but we have to follow the process,” said a banker on the condition of anonymity. “If we don’t put these intangible assets on the block there will be pressure from the Central Bureau of Investigation and Central Vigilance Commission alleging that we didn’t do our fullest to recover dues.” Sources also said that before Kingfisher Airlines went bellyup, banks had valued the brand and trademark at Rs 160 crore, but later an external agency had assigned a value of Rs 4,100 crore to the Kingfisher brand in 2011. The Kingfisher brand name was pledged to 14 lenders, including SBI, IDBI Bank, Punjab National Bank, Bank of India and Bank of Baroda under a debt recast agreement. Alpana Parida, president of brand consultancy DY Works, said while other airlines connote flying, travel or hospitality, Kingfisher Airlines stood for the ‘king of good times’. “This essence allows the brand to stretch across multiple categories. The brand transcended a direct association with its now-beleaguered promoter… The promise of good times allows the brand to stretch and (it) can be even used to sell newer categories such as real estate and fashion,” she said.
Aviation ministry cuts down airport entry passes for staff of MPs and ministers
The next time you encounter a minister or parliamentarian at the airport, the posse that typically follows them everywhere will likely be missing. In a bid to secure airports further post the terror attack in Brussels, the civil aviation ministry has decided to cut down on the number of airport entry passes (AEPs) being provided to the staff of union ministers and MPs. Henceforth, only one member from the staff will have full access at the airports. Others, if sought, will get limited access till the security check area. Until now, there was no limit on the issue of such access cards. “There is no need for so many people to enter the airport to drop the minister or MP, as airlines and airport operators provide them with protocol officers to look after their requirements and drop them till the aircraft,” said a senior civil aviation ministry official, who did not want to be named. The proposal has been approved by both civil aviation ministers — cabinet minister Ashok Gajapati Raju and minister of state Mahesh Sharma – soon after the terrorist attack on the Brussels airport. A lot of AEPs issued to the officials of the civil aviation ministry will also be withdrawn, said the official. “The ministry has started rejecting requests for AEP and we have rejected a proposal for AEP from a union minister’s personal secretary,” said another civil aviation ministry official. Demand to curtail the number of these permits was always there, but it couldn’t be implemented because of opposition from its beneficiaries. The ministry was until recently liberal in issuing the access cars and requests from any MP or minister was immediately process without asking any question. “There are lot of things that we want to do, but are unable to do,” said a top ministry official. “The Brussels strike surely acted as an enabler in achieving this.” Analysts say such permits should be completely abolished. “I do not understand the logic behind passes to receive ministers or MPs from inside the aircraft. This does not happen anywhere in the world,” said Shakti Lumba, former head of operations at Air India and IndiGo. On the security point of view, Lumba said, a bigger worry is temporary airport employees involved in ground handling. “These people have access to baggage, aircraft and other sensitive installations at the airport. The government needs to ensure that such employees are not temporary because airlines, normally, outsource these services to contractors.” The civil aviation ministry, along with the Bureau of Civil Aviation Security – the aviation security wing of the government – in a series of measures have also stopped sale of visitor tickets at all airports. “The ban on entry of visitors inside the airport was immediately put in place after the attack in Brussels,” said one of the ministry officials cited earlier.
Additional levy of upto Rs 120 at Mumbai airport from April 1
Flying out of the Chhatrapati Shivaji International Airport here is set to get costlier with an additional levy of up to Rs 120, to fund the metro rail connectivity to the aerodrome, coming into effect from Friday. Tariff regulator Airports Economic Regulatory Authority (AERA) had in January this year allowed Mumbai International Airport Limited (MIAL) to charge an additional levy of Rs 20 from each domestic flier and Rs 120 from each international traveller as development fee to fund a metro rail project. The additional levy would be applicable from April 1, 2016 and remain in force till March 31, 2021, AERA had said in its order. MIAL is a 26:74 joint venture between the GVK group led consortium and the Airports Authority of India. The private airport operator currently levies a development fee of Rs 600 from an international passenger and Rs 100 from a domestic traveller. MIAL had last year sought AERA’s permission to charge additional development fee, to fund the metro rail project. Mumbai Metro Rail Corporation (MMRC), the project implementing company for all metro rail corridors across the western metropolis, is to construct a 32.5-km underground line, connecting Colaba in South Mumbai to SEEPZ in western Andheri suburb.
Chandigarh airport to be named after Bhagat Singh; Haryana Assembly gives green signal
The Haryana Assembly on Thursday unanimously passed a resolution to name Chandigarh airport after freedom struggle icon Shaheed Bhagat Singh. As soon as the Question Hour ended, Parliamentary Affairs Minister Ram Bilas Sharma moved the resolution in this regard. Later, it was unanimously passed with ruling BJP and main opposition Indian National Lok Dal (INLD) MLAs supporting it. Opposition Congress MLAs were not present as they have not been attending the assembly session to protest the six-month suspension of their three MLAs for tearing copies of the Governor’s address. On the resolution passed on Thursday, Sharma told the House that the state government would soon write to the Union Civil Aviation ministry in this regard.