Indian airlines flag foreign ownership concerns
Officials of India’s SpiceJet and Jet Airways have told the country’s Civil Aviation Ministry they object to foreign players setting up airlines in the country. The news comes two days after Gulf carrier Qatar Airways said it plans to set up a new carrier in India. Alexei Kovalev Authentic Jersey
Pratt & Whitney reiterates its India commitment
“We are addressing the queries and working with partners to resolve the issues,” says Palash Roy Chowdhury, managing director (India) for Pratt & Whitney (P&W) dismissing the criticism around its controversial PW1100G engine that’s powering some Airbus A320neo aircraft of IndiGo and GoAir. There are billions of dollars at stake for P&W, the US-based aerospace engine maker, after its engine – PW1100G – based on geared turbofan (GTF) technology started developing snags one after the other. “Indian carriers have been early adopters of this technology,” says Chowdhury. A series of incidents over the past two months has raised doubts on the safety of P&W engines. According to reports, there are six incidents involving A320neos using P&W engines which have developed glitches, including a fire on the tail of a GoAir flight. Following which, the aviation regulator Directorate General of Civil Aviation (DGCA) ordered boroscopic inspection of 21 Airbus A320neos (IndiGo’s 16 and GoAir’s 5) Eric Berry Jersey
No foreign carrier applied to start fully-owned domestic airline: Minister
The central government has not received any application from foreign airlines to start a domestic passenger carrier through the 100 per cent FDI (Foreign Direct Investment) route, Minister of State for Civil Aviation Jayant Sinha said on Wednesday. The minister gave the information in reply to a question raised about Qatar Airways’ plan to start a fully owned domestic passenger carrier in partnership with an institutional investor on the sidelines of an industry event here. Earlier, Qatar Airways had said that its plan to set up an airline in India along with Qatar’s sovereign wealth fund. Under the current rules a foreign airline can only invest up to 49 per cent in domestic airline. However, in partnership with an institutional investor, the foreign airline can invest and set up a 100 per cent owned domestic passenger carrier. The minister elaborated that the government was considering stakeholders’ views before framing any policy that allows for 100 per cent FDI into domestic airlines. “There are various opinions on this matter of 100 per cent FDI. We are considering what the Indian airlines through FIA (Federation of Indian Airlines) are saying,” Sinha told reporters. “Of course, the government’s policies are such that we do welcome 100 per cent FDI but we are working through the exact registration process and all of the appropriate policies around that,” Sinha added. Jacob Josefson Womens Jersey
Centre working on ‘appropriate policies’ for 100 percent FDI in airlines in India: Minister
Union Minister Jayant Sinha today said the government is working on “appropriate policies” related to 100 per cent FDI in airlines, amid local carriers opposing the move. The Minister of State for Civil Aviation also said the Ministry has not yet received any formal application from any airline with respect to 100 per cent FDI. His remarks come against the backdrop of Qatar Airways recently announcing its plans to set up an airline in India after the Indian government allowed 100 per cent foreign direct investment in the airlines segment last year. The Federation of Indian Airlines (FIA) — comprising Jet Airways, SpiceJet, IndiGo and GoAir — have been vociferous about their opposition to foreign entities being allowed to invest in local carriers. “There are various opinion on this matter of 100 per cent FDI. We are considering what the Indian airlines through FIA are saying. Of course, the government’s policies are such that we do welcome 100 per cent FDI but we are working through the exact registration process and all of the appropriate policies around that. That is under evaluation,” Minister of State for Civil Aviation Jayant Sinha told reporters here. Noting that the policy to allow 100 per cent Foreign Direct Investment (FDI) in domestic airlines is “probably not appropriate”, SpiceJet CMD Ajay Singh said that such kind of policies must be allowed on a reciprocal basis. “If an airline of a particular country wants 100 per cent FDI in our country then they must also be prepared to give 100 per cent FDI in their own countries… If that is not allowed then it is an unfair situation and it is not a level playing field,” he said. He also noted that there is a huge shortage of airport infrastructure and foreign airlines entering the Indian market would add to that burden. Cam Ward Jersey
High hopes and rough landings for India’s smaller airlines
Indeevar Varma, a human resources manager from Ahmedabad in the western state of Gujarat, was put off flying with Air Costa, a small regional budget Indian airline, after he says he “was bounced like a ball” during “a rough landing” when he travelled from Hyderabad to Ahmedabad several months ago. “That was the worst landing I’ve encountered,” Mr Varma recalls. Apart from that, “there was nothing unique about the airline but the planes were OK”, he says. Having avoided the carrier for some time, a few weeks ago he decided to give Air Costa another go. He booked a ticket from Ahmedabad to Hyderabad for March 7. A few days before the flight, he received a text message saying the flight had been cancelled. It was on February 28 that Air Costa, which was founded in 2013 and is based in south India, suspended flights as it faces a cash crisis. The sudden suspension follows a similar situation eights months ago, when Air Pegasus, a Bangalore-based regional carrier with three 66-seat aircraft, abruptly stopped flying because of financial difficulties, after operating for just over a year. These events raise questions over the viability of regional carriers in the cut-throat aviation market in India, where a flurry of regional services in the past couple of years launched with high hopes. Air Costa is desperately trying to raise funds from investors. The airline is owned by LEPL Group, which has interests in property and renewable energy and was founded by the entrepreneur LP Bhaskara Rao. Robby Fabbri Authentic Jersey
Air India rot runs deep amid understating losses, bleeding international ops
Air India has been under reporting losses for at least four years, says the country’s top auditor. This under-reporting is not any insignificant amount but a sum of over Rs 6,800 crore between 2012-13 and 2015-16. The airline has, as expected, said it did not do any under provisioning while asserting that its Rs 105 crore operating profit in FY16 was indeed a profit, never mind the observations of the Comptroller & Auditor General (C&AG) that the airline actually posted an operating loss of Rs 321 crore last fiscal. Since the two erstwhile airlines (Air India and Indian Airlines) merged to form the present entity, the measly Rs 105 crore operating profit was the first time in a decade that the word ‘profit’ was used for Air India in any form. Now even this figure has been called into question, raising doubts about the accounting standards followed by the state-owned carrier. As the airline and the C&AG continue to differ over what ‘provisioning’ actually means in standard accounting practice, it is interesting to examine the detailed explanations and instances C&AG has given in its report, of Air India’s operational blunders during the four years under review. Mike Hoffman Jersey
Yes, Air India Never Made Any Profit, It Under- Reported It’s Original Loss Of Rs 321 Crore
Apex Auditor, Comptroller and Auditor General (CAG) has revealed that Air India had actually incurred an operating loss of Rs 321.4 crore last fiscal year. However, Air India reported that it had made an operating profit. The CAG said that there was no fudging of numbers, however, the figures reported by the airline are “actually under-reporting of loss”. Air India, still alive on taxpayers’ money, reported an operation profit of Rs 105 crore in 2015-16, a first in over a decade. “For 2015-16 where Air India has reported an operating profit of approximately Rs. 105 crore, the audit of Air India’s standalone accounts for 2015-16 has been completed,” Deputy CAG Pradeep Rao said. About the operating profit which Air India has stated it has made in 2015-16, Rao said that in the view of CAG, “it is actually an operating loss of Rs. 321.4 crore”. Based on the observations made by statutory auditor of the company and the subsequent check by CAG, “we have found that they have not made provisions which they should have made in terms of standard accounting procedures”, he noted. Rao spoke about Air India’s financial performance during the 2015-16 fiscal while briefing reporters about the CAG’s performance audit on ‘Turnaround Plan (TAP) and Financial Restructuring Plan (FRP) of Air India Ltd’. Starlin Castro Jersey
BJP win revives Jewar airport hopes
With BJP’s clean sweep in the Uttar Pradesh assembly elections, a proposed mega infrastructure project — an international airport in Jewar — could finally see the light of day. Talk of the second international airport in Greater Noida resurfaced on Saturday, with the winning candidate for the Jewar assembly seat, Dhirendra Singh, listing it as his priority and Union minister for culture and tourism Mahesh Sharma, who is the MP from Gautam Budh Nagar, saying he would fulfil his promise to the electorate. Union home minister Rajnath Singh, while campaigning in Jewar last month, had also said the Jewar international airport, first proposed by him when he was CM of UP in 2001, had already got the required approval from the Centre. “Prime Minister Narendra Modi is keen to develop world-class infrastructure in the country, which will help generate jobs,” Sharma told TOI. “The people of UP have shown their faith in the PM’s policies. We in turn will fulfil the aspirations of the people and my constituencies. We will seriously work towards establishing the airport in Jewar,” Sharma said. Jack Roslovic Authentic Jersey
CIAL Model redefines perceptions of development: CM
Chief Minister Pinarayi Vijayan on Saturday lauded the Cochin International Airport model of development, saying that the growth of the airport had led to changes in perceptions on developmental activities. “The CIAL model refutes the general perception that ensuring development is the responsibility of the government alone,” the Chief Minister said. He was speaking at the inauguration of the international terminal (T3) at the airport. He also opened the four-lane road linking the airport to the national highway along with an over-bridge. The Chief Minister also launched the augmentation of the solar power generation capacity at the airport. “The Kannur airport is expected to be ready in another six months, and a detailed survey for a possible airport near Sabarimala is under way,” he said. The State government has taken up issues pertaining to the Kozhikode airport with the Civil Aviation Ministry. The Directorate of Civil Aviation has also been contacted. Land acquisition for the airport will be expedited, Mr. Vijayan added. The Chief Minister said CIAL had also displayed its social responsibility by providing jobs to those who were displaced by the airport project. Besides, the airport authority is providing a total of ?17 crore to various panchayats and the Angamaly municipality for various development projects, which include drinking water projects in the neighbouring panchayats. Alex Galchenyuk Womens Jersey
Single window clearance for women starting airline ventures
Women entrepreneurs will get “single window clearance” and other benefits to start an airline under the regional air connectivity scheme, a top official said. The remarks were made by Civil Aviation Secretary RN Choubey in a video message at an event here to celebrate International Women’s Day today. “Regional Connectivity Scheme is an opportunity whereby women can set up a brand new airline… I assure that women will get special treatment. We will give them single window clearance,” he said. Women should come forward to start aviation companies, Choubey said in the video message recorded for the non-profit group Women in Aviation International (WAI). The event, organised by WAI, was also attended by Choubey and Civil Aviation Minister Ashok Gajapathi Raju. As part of efforts to make flying more affordable as well as connect unserved and under-served airports, the government has unveiled the ambitious regional connectivity scheme UDAN (Ude Desh Ka Aam Naagrik). Under UDAN, various incentives would be extended to the participating airlines, including viability gap funding, while fares would be capped at ?2,500 for one-hour flights. Helicopter services are also covered under the scheme. Speaking at the event, the Civil Aviation Minister said there is some way to go in addressing gender inequality. “We do have some way to go in addressing gender inequality but the silver lining in the cloud is that everybody has started accepting that gender inequality must be a thing of the past,” he said. Raju also felicitated the all-women crew of Air India that flew around the world on a Delhi-San Francisco flight. WAI unveiled the slogan ‘Beti Ki Udaan, Desh Ka Swabhimaan’ as part of International Women’s Day celebrations. Anthony Mantha Jersey