Boeing nears $10.1 billion order from Spicejet, says report
Budget airline SpiceJet Ltd is expected to order at least 92 Boeing Co 737 jetliners, as it looks to bolster its presence in the world’s fastest growing aerospace market, Bloomberg reported on Thursday. The deal, which would more than double SpiceJet’s 40-plane fleet, may be closed within weeks Bloomberg reported, citing people with direct knowledge of the decision. The order could be worth about $10.1 billion, the publication reported. Boeing declined to comment while SpiceJet was not immediately available outside regular business hours. Dell Curry Womens Jersey
IndiGo, SpiceJet raise red flag over FDI norms in aviation
IndiGo and SpiceJet have raised “security” concerns over the government’s decision to allow 100 per cent foreign ownership by non-airline players in the Indian carriers. Spicejet CMD Ajay Singh and IndiGo president Aditya Ghosh have recently raised this issue during their meeting with Commerce and Industry Minister Nirmala Sitharaman. During the meeting, the two airlines said aviation is a “sensitive sector” and the FDI policy relaxation would have “security implications”, according to sources. Spokespersons of IndiGo and SpiceJet could not be immediately reached for comments. The meeting also assumes significance as the government is considering removal of an anomaly restricting foreign direct investment (FDI) in the civil aviation sector. Jake Bischoff Womens Jersey
India To Buy Six More C295s for Coast Guard
India is likely to sign a contract with Airbus Defence and Space for 56 C295 military transports within six months, according to the country’s retiring chief of the air staff, Arup Raha. Meanwhile, the Indian Ministry of Defence has cleared the separate acquisition of six C295s for an Indian Coast Guard requirement. Both orders will be delivered by the Tata-Airbus partnership that is India’s first-ever private sector aircraft development enterprise. At his end-of-tenure press conference on December 23, Raha told AIN that the evaluation of the C295 bid for the IAF is complete and contract negotiations would start soon. “Since benchmarking and other issues [of the aircraft] are known to us, the process will not take very long, especially with a proactive defense minister where things get sorted out faster than they did in the past,” he said. He added that, given the large number of aircraft to be ordered—16 to be delivered in flyaway condition and 40 to be manufactured in India—the Coast Guard contract would be “processed subsequently to completion of this series.” He continued, “The landmark decision for manufacture of this 8- to 10-ton-capacity aircraft will empower the private sector and help us with capabilities, with assistance from OEMs.” The IAF need for a new medium airlifter has become urgent, as the service grapples with aging An-32s. In the past two decades 15 have crashed, the most recent one last year with 29 people on board. That aircraft has not yet been located, since Russian aircraft do not have underwater locator beacons. A contract will be signed within two months, Raha said, to equip helicopters and fixed-wing aircraft with emergency locator transmitters and underwater locator beacons linked to flight data recorders that are triggered by water immersion and indicate where wreckage is, in a large area of sea. Javon Hargrave Jersey
Centre mulls lower import duty for leasing firms
The Union civil aviation ministry has proposed the lowering of customs duty for aircraft imported by leasing companies set up in India. The ministry has asked the finance ministry to consider reducing customs duty for lessors from 21 per cent to the prevalent rates of zero per cent for scheduled and two per cent for non-scheduled operations. Aircraft imported by non-scheduled operators, such as Alchemist Airways and Air Odisha, face a 2.5 per cent import duty whereas planes imported by scheduled operators, such as IndiGo and SpiceJet, are exempt from tax at present. Aircraft imported for any other purposes, including private use, attract 21 per cent customs duty. Terrell Davis Womens Jersey
Defer higher air navigation charges at Indian airports: IATA
Global airlines body IATA has urged the government to defer implementation of revised air navigation charges at various Indian airports saying there was “complete lack” of consultations with stakeholders in this regard. The charges for airport services as well as those related to air navigation at non-major aerodromes have been revised effective December 16, 2016. Referring to the increase in Air Navigation Services (ANS) charges at all airports and airport services charges at non-major aerodromes, IATA said it is deeply disappointed by the “complete lack of user consultation and transparency before arriving at this proposal”. In a recent letter to the Civil Aviation Ministry, IATA said this is particularly surprising given that significant conversations with Airports Authority of India (AAI) had indicated that full and thorough consultation with stakeholders would be undertaken prior to any such changes. International Air Transport Association (IATA) has also requested that the “implementation of these increases is deferred indefinitely and that the relevant agencies enter meaningful negotiation with affected stakeholders”. According to the grouping, fees and charges can only be set realistically through a detailed and structured cost assessment process involving consultation with all affected stakeholders. “This must be a robust process in order to reach consensus between the service provider and airlines as business partners. IATA believes that at least a four-month notice of revision should be given to airlines and their representative organisations,” the letter said. IATA, which represents over 265 airlines from across the world, said increases in charges without proper consultation has the potential to rapidly erode competitive advantage and potentially jeopardise growth prospect of tourism industry as well as of wider Indian economy. Generally, airports serving less than 12 lakh passengers annually are considered as non-major and charges for these aerodromes are fixed by Directorate General of Civil Aviation (DGCA). Most of the non-major aerodromes are owned, managed and operated by government-owned AAI. It levies charges for services, including route and terminal navigational landing fee, as well as parking. In the letter to Civil Aviation Secretary R N Choubey, IATA Regional Director (Safety and Flight Operations) for Asia Pacific said that airport and air navigation service charges must be in line with ICAO tenets. Copies of the letter, dated December 9, have also been sent to AAI Chairman Guruprasad Mohapatra and DGCA chief B S Bhullar. Pat Lafontaine Womens Jersey
Air India operational losses down 70 per cent in 9 months
Air India has continued to improve its financial performance, reducing operational losses by 70 per cent to Rs 161crore for the first nine months of the currrent fiscal ending December 2016, aided by higher ancillary revenues and higher contribution from subsidiaries. The airline reported a 10.6 per cent increase in operating revenues atRs 15,828 crore, according to its unaudited numbers. Its expenses increased 7.6 per cent to Rs 15,990 crore. “The increase in revenues on the back of higher cargo and excess baggage earnings and increased contribution from subsidiaries helped Air India reduce losses by over 70 per cent during the first nine months of the current fiscal,” a senior Air India executive, who did not want to be identified, said. The airline has to improve further to achieve its target of Rs 1,000 crore in operating profit in the current fiscal. The national carrier had, for the first time since the merger of Air India and Indian Airlines, reported an operating profit of Rs 105 crore in FY16. The performance is likely to be reviewed by the Prime Minister’s Office today. The meeting may also discuss allowing the national carrier to recruit more people and a proposal to increase the retirement age of employees to 60 from 58. This will be the PMO’s second review of Air India’s performance. Los Angeles Rams Authentic Jersey
Union Budget 2017: Allow private airport operators to raise funds via tax free infrastructure bonds, says FICCI
Union Budget 2017 should facilitate private airport operators to raise funds by allowing them to issue tax free infrastructure bonds, recommends FICCI. In its pre-Budget 2017 memorandum, the Federation of Indian Chambers of Commerce and Industry (FICCI) said, “To facilitate the private airport operators to raise funds, it is recommended that they should also be allowed to issue tax free infrastructure bonds to the public.” “Further, the investments in these bonds should be notified for the purpose of claiming deduction under Section 80CCF of the Act by restoring section 80CCF in the Act,” it said. FICCI also urged Finance Minister Arun Jaitley that the deduction limit under section 80CCF of the Act for investment in infrastructure bonds should be increased from Rs 20,000 to Rs 50,000. According to Aviation minister Ashok Gajapathi Raju, the domestic aviation sector is on an “upswing”. “Indian aviation industry is on the upswing and today stands at an inflection point in its chequered history. We have recorded an exceptional growth in the past two years,” he said last month. Domestic air passenger growth has been more than 20 per cent for nearly two years while local carriers are also embarking on significant fleet expansion plans. Scott Wilson Authentic Jersey
GMR cites ‘execution challenges’, may exit Navi Mumbai airport project
The Navi Mumbai Airport project has run into trouble, days before the January 9 deadline for submission of financial bids, with at least two bidders — GMR Airport Ltd and MIA Infrastructure — among the four short-listed companies expressing concerns over likely delays in project execution. The companies have written to the City and Industrial Development Corporation (CIDCO), the project’s implementing authority, saying pre-development work, site preparation and rehabilitation of project-affected people (PAP) is yet to be completed. In separate letters, they have urged CIDCO to extend the deadline for submission of financial bids and sort out the problems before deciding on a fresh deadline. The four companies — GVK Mumbai International Airport Pvt Ltd (MIAL), GMR Airport Ltd, MIA Infrastructure (a joint venture of Tata Realty and Vinci Concessions of France) and Zurich Airport-Hiranandani Construction consortium — need to submit financial bids as per the deadline. J.J. Watt Womens Jersey
India to play hardball for equitable share of slots at foreign airports
India may make allocation of slots for its airlines an essential part of any bilateral treaty signed in future. This is after hectic lobbying and repeated complaints by airlines that they were being overlooked in terms of peak time slots. According to sources in the civil aviation ministry, there has been a mutual consensus between the civil aviation and external affairs ministry that countries showing interest in increasing seat allocations will be pushed to give slots to Indian carriers of their choice. “We are a big market in terms of passengers; a lot of foreign airlines want to expand in India, there is no fault if we intend to play according to our position of strength,” says a senior civil aviation ministry official. “There is a consensus in the ministry that we need to be more vocal about our carriers,” added the official. Indian carriers have long been complaining that not getting slots in foreign airports hampers their scheduling, hence curbing the viability of profitable overseas operations. Pat Lafontaine Authentic Jersey
Indian aviation takes off but growth weighs on airports
After a long rough patch, Indian aviation is finally booming, but that burst of growth is now taking a toll on the industry’s infrastructure. High operating costs, intense competition and the collapse of Kingfisher Airlines had weakened both business and civil sectors in previous years, but recently the Indian market has turned a corner into the world’s fastest growing, largely thanks to supportive government policies. India is currently the sole bright spot in Asia’s aviation sector, Neil Book, CEO at the largest independent aviation firm JSSI, told CNBC’s “Squawk Box” on Wednesday. Private jet sales are up and the emerging middle/upper classes have witnessed double-digit growth rates in travel, he explained. The upper middle class made up 8 percent of the population in 2015, and is set to hit 12 percent by 2020, according to Boston Consulting Group. Meanwhile, the ultra-high net worth population–defined as those whose net worth exceeds $50 million–stood at 178,000 in 2016 and will increase 57 percent by 2021, estimates Credit Suisse. Unlike his predecessors, Prime Minister Narendra Modi has loosened industry restrictions that are set to increase new aircraft deliveries as well as in-service and used business jets, Book continued. Dustin Pedroia Jersey