4 key private airports need Rs 27,000 crore to expand capacity: Crisil
Four major private airports in the country will require an investment of Rs 27,000 crore in expanding the existing capacity, which has reached near optimum level, by 2021, a report said today. The four private airports — New Delhi, Mumbai, Hyderabad and Bengaluru — cater to nearly 55 per cent of the country’s total air traffic. These airports are operating at near-full capacity and will need to spend heavily on expansion through 2021, said the report by ratings firm Crisil. “Because of surging footfalls and high capacity utilisation of over 90 per cent, we estimate the four airports would need to invest Rs 27,000 crore for expansion,” Crisil Ratings President Gurpreet Chhatwal said. Yet, their credit quality will remain healthy because of business model strength backed by robust traffic growth and predictable cash flows under a regulated tariff framework, the rating outfit said. According to the firm, air passenger traffic in the country grew 20 per cent in the last fiscal which was a big leap over the sedate 9 per cent average seen since 2011. Bengaluru and Hyderabad airports have clocked even faster growth of over 24 per cent, the report said, adding rising private consumption and healthy economic growth would continue to provide tailwind to traffic growth at airports. Brandin Cooks Jersey
Soon a flight every 37 seconds would be possible from Indira Gandhi International Airport. Here’s how!
Soon, a flight every 37 seconds would be possible from Indira Gandhi International Airport in Delhi. There is a constant increase in the passenger traffic at IGIA so the authorities are mulling to increase the number of aircraft movements by over 40% per hour in three years. Currently, there are around 67 aircraft movements per hour at the airport under the summer schedule. This number is proposed to be increased to 95. This means that every 37 seconds a flight would be possible from IGIA. MoS Aviation Jayant Sinha said, there is a “strong working hypothesis” to increase the aircraft movements at the aerodrome, after discussions with stakeholders concerned on increasing the overall capacity at IGIA. A takeoff or landing is considered as one aircraft movement. “We can expand it (aircraft movements) to 95 movements per hour in next two to three years… We think it is entirely feasible,” Sinha said, adding that it can be done only with very close collaboration between all the stakeholders, including air traffic controllers, airport, and airlines. The Minister of State for Civil Aviation also noted that once the airside capacity is increased, then passenger handling capacity can go to 90 million from the current level of 60 million per year. Not just this, a flight operations committee would be set up to look into various issues related to the airport and the panel would hold a meeting every month. Noting that the master plan for the Delhi airport is being re-evaluated, Sinha said UK-based NATS has been examining on how to increase airside capacity in the next two to three years. Airside capacity refers to takeoffs and landings that an airport can handle. NATS provides air traffic control services. “NATS analysis is a strong working hypothesis. It is not a final scientific conclusion. “There will be several months more of very detailed technical analysis, including simulations using the proprietary software to come to a conclusion on exactly how many movements are possible and by when” the minister said. Against the backdrop of differences between the Delhi airport operator and airlines over proposed shifting of operations to T2, Sinha said planning for increasing terminal capacity depends on airside capacity. An official release said that by the end of this year, the airside capacity is expected to rise by 10 per cent, with around 72 to 73 movements per hour. There are two operational terminals at the airport here — T1 and T3 — while T2 construction is over but flights are yet to start operating from there. While T1 has a rated capacity to 20 million passengers a year, the number of passengers passing through that terminal is around 24 million. Joe Pavelski Jersey
Jet Airways local pilots allege ‘step-motherly’ treatment
Jet Airways is treating Indian pilots in a “step-motherly” manner compared to their expat counterparts on the rolls, pilots’ body NAG on Wednesday claimed. Demanding swift action against alleged racist approach of the expat pilots at the airline, the National Aviators Guild (NAG) called for disallowing such pilots in the cockpit. The grouping’s statement follows its direction on April 15 asking its members not to fly with the expats in the cockpit after one of the foreign pilots allegedly assaulted a trainer in Bengaluru recently. Jet Airways has some 60 expat commanders, who mainly operate its Boeing 737 and ATR fleet. In a strongly-worded statement, NAG said disparaging, inappropriate and racist comments allegedly made by certain expat pilots cannot be taken lightly. “This is in addition to the verbal and physical abuse of a senior trainer by an expat pilot employed by the airline,” NAG claimed. “The management has for a very long time treated the Indian employees, including the pilots, in a step—motherly manner and has disregarded the legitimate expectations of its employees to be treated fairly, reasonably and in a just manner.” A Jet Airways spokesperson did not offer any immediate comment on the NAG allegations when PTI sought a response. The guild claims representation of nearly 1,000 pilots of the total around 1,500 pilots in Jet Airways. The Naresh Goyal-promoted airline had witnessed a 5-day long strike by NAG in September 2009 over the issue of forming the union. According to the statement, Jet Airways management needs to respond swiftly and ought to issue a diktat to said expat pilots to apologise or else leave forthwith. Stressing on the need for collective action, NAG said the airlines reputation cannot be “tarnished by racist and hateful comments made by certain misguided foreign nationals“. On April 15, NAG has issued a directive to all its members not to fly with the foreign pilots in the airline from May 1. Ken Crawley Authentic Jersey
Kerala To Convene Meeting Of Airlines For Kannur Airport
The Kerala government will convene a meeting of various airlines to discuss the launch of their services to and from the upcoming Kannur International Airport, said Chief Minister Pinarayi Vijayan. Mr Vijayan met Union minister for Civil Aviation Ashok Gajapathi Raju and apprised him on the progress of the work of the airport, which is expected to be operational from September this year. “DGCA clearance for the new airport, arranging CISF security, setting up of emigration facilities etc will have to be arranged at the Kannur airport. For this purpose, the Civil Aviation Secretary will convene a meeting of the Central agencies concerned,” the Chief Minister said in his Facebook post. He also requested the Union Minister to allot more international flights to the upcoming airport in the state. The Rs. 1,892 crore-airport is built in 2,000 acres in northern Kerala. The Kerala Chief Minister also said that the state will speed up the process of acquisition of land for the Calicut International Airport, which was partially shut down in May 2015 for strengthening and resurfacing runway work. “DGCA team will visit the Calicut Airport to inspect the feasibility to operate wide-bodied aircraft from there,” he said. Mr Vijayan also informed the Centre that the state will acquire 18 acres of land for the development of Trivandrum International Airport. Zach Miller Authentic Jersey
Flying high on shorter routes
Though the jury is still out on how many airlines will benefit from the Government’s Regional Air Connectivity Scheme (RCS), Alliance Air, the regional arm of Air India, is hoping to turnaround its fortunes through the program. Alliance, one of the five carriers who were awarded routes under the RCS, is most likely to be the first to start operating flights under the scheme. Part of the Government’s UDAN initiative to link smaller cities, the Scheme aims to breathe life into unserved airports. Alliance has some inherent advantages when compared to Air Odisha and Deccan, which too were awarded routes. It already has a flight to Delhi to Bhatinda, which will now get subsidy under the RCS; and on the cards are flights linking Shimla and Ludhiana to Delhi. Under UDAN, services should begin within six months of being awarded the route. The loss-making company at present has a fleet of 72-seater and 48-seater ATR aircraft that fly to 34 destinations. Under the RCS, Alliance has been awarded 15 routes. CS Subbiah, Chief Executive Officer, Alliance Air, admits there are risks involved in flying into markets few want to go, but is quick to add that the RCS plan will help. “Viability Gap Funding (VGF) fits into our business plan as we are allowed to go to a place where the Government is willing to subsidise part of the risk.” Under the RCS, the Government will provide VGF for fixed-wing aircraft covering 200-500km, provided at least 50 per cent of the seats are priced at an all-inclusive fare of ?2,500. It’s most likely that 18-20 seater aircraft will operate in many of these routes. The Government will provide the operator a viability gap funding of ?3,750 per seat sold under the RCS, up to a maximum of 40 seats per flight. The VGF has been capped at ?4,170 for routes that span 776-800km. To be eligible for the VGF, an airline will have to operate regular services to at least one airport, which at present does not have regular flights. “VGF will cover about 30 per cent of our costs. The costs associated with the risk of entry into a nascent market are partly covered by VGF ,” Subbiah says. The CEO says that the funding will help Alliance keep the fares low to woo customers who would otherwise travel by Shatabdi and Rajdhani trains. For instance, the flight from Bhatinda, home to one of the biggest Army cantonments, will allow a soldier to reach his family in Chennai in six to seven hours. A train journey would take more than 50 hours. Challenges At the same time, challenges remain. Says Subbiah, “The first four months are going to be crucial till we establish the product in the market and people start flying. First of all we need to create awareness.” In the past, non-availability of funding had forced the airline to withdraw from Chennai-Puducherry and Delhi-Durgapur-Kolkata routes. Then there are logistical issues too. Alliance’s Shimla flight, for instance, could run into some financial trouble. Given the height at which Shimla is located the airline will not be able to take more than 30 passengers from Delhi, while fewer than that number will be able to fly back (with a baggage allowance of 10kg per passenger). To make the Shimla flight financially viable the airline has also approached the Himachal Pradesh Government for financial assistance. While Subbiah declined to get into specifics, the airline is rumoured to have asked for over ?50 crore annually. However, Subbiah is keen to start the Shimla flight at the earliest as during the summer, people from Delhi will prefer to fly rather than spending hours by train or road to reach the hill station. He is hoping that the timing of the flight — in peak summer months — will save time on marketing the service. “We are keen to capture the traffic in the summer months so that by the time winter comes the traffic becomes regulated. Besides a lot of Government employees come down to Chandigarh, and taking the flight will save them a lot of time,” he points out. Depending on the success of the flight, Alliance could also look at increasing its frequency. This will also serve another purpose; as the aircraft flies more, the fixed costs get spread out. “Which means that the cost of operations is likely to come down. Affordability will increase so you can take more risks,” says Subbiah. He is also betting on success for another reason — Air India has a wide network locally and internationally, and passengers travelling from the interiors will be able to connect to the Air India network. “We feel that ultimately the regional networks have to converge into the national networks. We expect that in six months, transfer passengers (from Alliance to Air India and vice-versa) should be contributing about 20 per cent to our revenues. That will be very good traffic if we get it. This is slightly on an optimistic note. A pessimistic note will be about 10 per cent,” Subbiah concedes. Tiger Williams Womens Jersey
Dedicated import cargo processing area established
A dedicated import cargo processing area has been established at the Tiruchi international airport. The facility catering exclusively to import cargo dispatched in foreign airlines has been created adjoining the existing export freight terminal. The need for a dedicated import cargo processing area was felt as the one which existed earlier was converted into a full-fledged international courier terminal which is awaiting commissioning for several months now. The new area created to exclusively handle import cargo has been set up on over 150 square metres. It has been split into three segments – storage area, examination point and delivery area. A ramp has been provided to connect the import cargo processing area with the export freight terminal for easier movement of men and materials. The import processing area has access to the city side of the airport which has witnessed steady rise only in export cargo movements over the years. Brian Poole Authentic Jersey
Varanasi airport gets ‘major’ tag after handling more than 1.5 million flyers in 2016-17
Varanasi may have to wait a few more years for the ongoing redevelopment to show results but its airport already appears to have gained from its exalted status as Prime Minister Narendra Modi’s Lok Sabha constituency. It was recognised as a major airport in January by the central government after it handled more than 1.5 million passengers in 2016-17, completing three years of above-average growth. The airport, which saw passenger growth of about 8% and 2% during FY13 and FY14, respectively, flew much higher than the national average of over 20% during the past three fiscal years starting fiscal 2014-15. The change will help Varanasi attract a larger share of the government’s airport investment plan. The airport’s financial plans and performance would also now be reviewed by Airports Economic Regulatory Authority (AERA), which would mean a professional assessment of its finances and charges. Charges at minor airports are calculated by the aviation ministry. “Varanasi has been one of the best-performing airports in the country and is growing further. Its growth can only be termed phenomenal,” said a senior aviation ministry official, who did not want to be identified. Industry analysts say that the passenger growth during the period at the airport is much higher than comparable airports such as Lucknow and Patna. “Overall, the growth in Varanasi does not seem to be driven by connectivity to more cities but the increased frequency of flights from existing cities,” said Sharat Dhall, chief operating officer at Yatra-.com, an online travel portal. “Major routes have been roughly the same during the last 4 years which leads to the prima facie conclusion that PM Modi representing Varanasi is drawing significant attention to this city,” Dhall said. “It does seem that Varanasi is enjoying the Modi effect with a clear surge in passengers to the city over the past 3 years, well ahead of other comparable cities such as Lucknow and Patna,” he said. Dhall said the growth will be sustainable “if the business and tourism projects initiated are executed upon and lead to Varanasi becoming a real hub for both business and tourism”. A tourism ministry official added that there are big plans to tap the city’s tourism potential which will further help the growth of the city. “There are plans to start a helicopter service with base in Varanasi that will connect Buddhist pilgrimage centres around the city. This will further give a boost to tourism and air travel in the city,” said the official who did not want to be identified. Mike Komisarek Authentic Jersey
Civil aviation, AAI, Amritsar airport director told to hold meeting
The Punjab and Haryana high court on Tuesday asked the Union ministry of civil aviation, Airports Authority of India (AAI) and the director of the Amritsar international airport to hold a meeting with senior advocate M L Sarin, who is amicus curiae, regarding the operation of international flights by private airlines from the holy city. The meeting would be held within three weeks. Sarin will examine all possibilities of operating flights by private airlines interested in launching operation from Amritsar and submit his assessment to the HC. A division bench headed by Justice S S Saron passed these orders during the hearing of an ongoing petition filed by the Amritsar Vikas Manch (AVM) against the decision of Air India to divert the Amritsar-Birmingham flight to Delhi. Assistant solicitor general Chetan Mittal has been asked by the bench to facilitate the holding of the meeting. The order came after the court was informed that Air India was not making profit from its Amritsar-Birmingham flight. On March 28, the HC had asked Air India to explain as to why it had diverted the Delhi-Birmingham flight from Amritsar to Delhi despite the fact that majority of passengers were from Punjab. During the hearing, counsel for the AVM, Ankur Soni submitted a list of private airlines that were interested in starting a flight from the Amritsar airport for various international destinations. The AVM had approached the HC, seeking resumption of non-stop international Air India flights from Sri Guru Ram Dass Ji International Airport, Amritsar, to London, Birmingham and other destinations. It has been arguing that as per the 2015-16 statistics, 1,36,046 passengers travelled on the Amritsar-Delhi-Birmingham route. It was also argued that Delhi was the only airport which charges user development fee (UDF) from both arriving and departing passengers. This means that the charge for the Delhi-Amritsar-Birmingham flight would be around Rs 1,500 while Amritsar charged only Rs 950. The Delhi International Airport is charging around Rs 550 excess per passenger which for 1,36,046 passengers comes around to Rs 75 crore, which is the amount Air India is paying in excess to the Delhi airport but still not ready to start its flight from Amritsar. It was also stated that the c of Amritsar airport was Rs 50 crore, which could be compensated if Air India started its flight from there. Lanny McDonald Authentic Jersey
Private airport at Durgapur zooms back into business
In June last year, Air India withdrew its thrice-a-week service connecting the Bengal Aerotropolis Projects Ltd (BAPL)-run private airport near Durgapur in West Bengal with Delhi, citing lack of passengers. The decision virtually closed the airport. On February 12 this year, the airport, also referred to as Kazi Nazrul Islam airport, resumed services with daily Zoom Air flights on Kolkata-Durgapur-Delhi route. Two months down the line, the flight is reportedly witnessing 95 per cent occupancy and Zoom is planning to launch services to Mumbai and Chennai. New flights planned “The flights are operating at 95 per cent occupancy,” BAPL Managing Director Partha Ghosh told BusinessLine. According to him, Zoom hopes to launch two more connections to Chennai and Mumbai by June-July. BAPL, which has Changi Airport of Singapore as one of its promoters, has been arguing that Durgapur, located in India’s coal and steel heartland, offered great potential for airlines. The emergence of Durgapur as a private education hub has boosted its potential. In June last year, BAPL blamed flight delays and costly operations of AI for the losses suffered by the airline. This is despite 75 per cent passenger load on the Kolkata-Delhi-Durgapur route, which equalled AI’s national average then. In the recently concluded first round of bidding for regional connectivity flights under the UDAN scheme, Air Deccan won the rights for flights from Durgapur to Kolkata and Bagdogra in North Bengal. The services were to be launched in July. But the government has now postponed it to September. Interestingly, Air Deccan also won the right to connect Kolkata with Burnpur, which is barely 30 km south of the Durgapur airport. Normally, two airports at such close proximity are unviable. BAPL sources are confident that even if flight services to Burnpur happen, they will not pose any threat to Durgapur airport. According to them, Burnpur merely has an airstrip that belongs to SAIL. In contrast, Durgapur is a full-fledged airport, with the latest technologies and is eyeing connectivity to metros. Orlando Brown Jr. Womens Jersey
Soon inter-city flights for just ₹2500, says UP civil aviation minister
One hour flights to cities like Lucknow, Gorakhpur and Varanasi from Allahabad for just Rs 2500 will become a reality soon. Nand Gopal Gupta ‘Nandi’, UP cabinet minister of stamp, registry and civil aviation, spoke extensively about how cities in UP will be well connected with air service. Starting helicopter service to six pilgrimage sites in the state was also in the pipeline. He talked about his plans in an interview with HT How are you planning for small distance flights at cheaper rates in UP? In order to make air service available to even medium and low income group people, we have planned to launch small distance flights from Allahabad. The one hour flight will cost just Rs 2500. There will be viability loss but 80% of it will be covered by the Centre and 20% by the state. We are also inviting private airlines to launch their service in UP. Once the number of passengers increases, the loss will automatically be covered. When will Allahabad airport become fully operational with more number of flights? The target is to make it fully operational by October 2018 before Ardh Kumbh. It would be well connected with Delhi and other parts of the country. We have recently sanctioned Rs 35 crore for acquiring land etc for the airport. I have also asked the district magistrate of Allahabad to inform in case more funds are required for the purpose. Are there any plans for construction of airport in other cities of UP? Bareilly and Kushinagar will also be having airports. In Bareilly, we have also acquired land for it. Is it true that major pilgrimage sites in UP will be connected with helicopter service? In the initial phase, six pilgrimage sites will be connected with helicopter service. These sites include Vindhyachal, Chitrakoot and Naimisharanya. Helipads are being constructed at these places. In the second phase, other places of religious significance will be covered. How do you propose to make stamp and registry department work as per the ‘Digital India’ initiative of PM Narendra Modi? We have already started working to further strengthen the e-stamping facility in which online payment for non judicial stamps could be made within a few minutes. Further, swipe machines would be installed for making cashless payment for registry. Now, the newly-wed couples can also get their marriage certificates online. They just have to submit their Aadhaar number in the online form. In this way, fewer people would come to departments for getting their certificates. This would, in turn, hopefully bring down the corruption graph. Further, these departments will be made people-friendly with water and seating facilities. Jonathan Cooper Jersey