Tremendous growth potential for domestic air cargo, says Raju
There is tremendous potential for domestic air cargo growth but “somehow the jigsaw puzzle” was never pieced together, Union Minister Ashok Gajapathi Raju said as he rued that currently cargo is only a minuscule part of Indian aviation sector. Currently, Blue Dart and QuikJet are the only two domestic players operating cargo carriers. Naresh Goyal-owned Jet Airways had announced its plans to set up a cargo airline in 2015 and had even got Government’s in-principle approval for leasing of a freighter from its strategic investment partner Etihad. However, the airline later shelved the plans, citing market conditions. The Civil Aviation Minister said there is a need to motivate entities for air cargo operations. “In India, God has blessed with all types of climates, name the climate, name the produce the potential is tremendous. We are in the infancy (with regard to air cargo),” Raju told PTI in an interview. Even as the domestic passenger growth has been over 20 per cent for many months, cargo segment is lagging behind. The national civil aviation policy has also given thrust to boosting air cargo business, especially against the backdrop of rising e-commerce activities and exports. Alex Smith Womens Jersey
Pvt airlines scuttling regional connectivity scheme
Now it is confirmed that all domestic airlines, barring PSU carrier Air India, have joined hand to fail the Government’s plan to promote regional connectivity by encouraging setting up of smaller carriers. The Federation of Indian Airlines which represents scheduled carriers like Jet Airways, Indigo, Spicejet and Go Air have gone to court challenging the Government notification imposing a levy per flight to create a fund for development of regional airports. It is a paltry Rs 7500 to Rs 8500 per flight of levy that the Civil Aviation Ministry notified recently. The Government wants to take flying to the masses by making if affordable and convenient. This would ultimately lead to growth of the civil aviation sector as a whole. If every Indian in the middle class income bracket, for example, takes just one flight in a year, it would mean sale of 35 crore tickets. It would be a quantum jump from just about 7 crore domestic tickets sold during 2014-15, according to the civil aviation ministry. It is a very valid argument. Apart from the overall growth of the aviation sector ultimately benefiting the air carriers, consider the convenience for the people who are denied air travel to smaller towns and cities for lack of infrastructure like proper airfields and connecting roads. Most of the funds needed for the development of this infrastructure is, anyway, being provided by the civil aviation ministry and the state governments. The airlines are also being asked to chip in, like a small levy per flight. But these airlines have pleaded that they cannot charge extra from passengers to pay for the levy. This is a very specious plea. What if the Government charged the amount in the name of, say, the airport development fee? Indeed such a fee was charged in the past for select airports. Now it is for development of around 200 airports across the country. The issue is just about broad-basing fund sources from stake holders. All domestic carriers have huge stake in the development of the civil aviation sector. The Government’s scheme of making flying cheaper (Rs 2500 for a flight of one hour and less) will benefit all. Wendell Smallwood Authentic Jersey
Is AI operating defunct, snag-prone aircraft & risking passengers’ lives?
Is Air India operating defunct and snag-prone aircraft for nation-wide flights and abroad as well and risking lives of passengers and crew? Well, if an email sent to Nagpur Today by a passenger is to be believed, then it is true. Malvika Vazalwar, in the email sent to Nagpur Today on Saturday (December 31), says that in March this year, she and her mother were on the Air India Nagpur-Mumbai (A320) flight. The flight had an emergency landing due to tyre burst. However, later, the Mumbai Mirror news reports revealed that the pilots had diagnosed old-age of aircraft as the cause of the emergency landing. “The Air India aircraft that was involved in the incident was manufactured in 1994 and is one of the oldest in this class of planes, which its pilots have in official correspondence often referred to as snag-prone and problematic,” the reports said. Malvika further says, passengers have the right to know about their safety. If the passengers had even inkling that the aircraft was not deemed fit according to official correspondence – they would not have boarded it. “We would have definitely not booked/ boarded the plane and taken another flight. We wouldn’t risk our lives for anything and definitely not for someone’s negligence,” she says. Malvika hoped 2017 is not snag-prone and is safe for passengers! Malcolm Brogdon Jersey
Kolkata airport: Up in the air, bitter to better
Nearly 13 million passengers used the integrated terminal at Kolkata airport in 2016, up from 10 million a couple of years ago. Designed to handle 20 million passengers a year, there is room to accommodate more fliers without the terminal getting cramped for space. Yet, it is the apparent emptiness of the stark steel and glass building that appears disconcerting to passengers, particularly during the afternoon lean hours. “The Kolkata airport is alright for transit but not an engaging place like the Mumbai or Delhi airport. If one arrives for a flight early, heshe tends to get bored because there aren’t enough things to do,” remarked Amit Ghosh, an executive who travels between Delhi and Kolkata at least once a fortnight. Graphic artist Sucharita Sengupta, who is also a frequent flier, says the Kolkata airport feels rather drab. “The minimalist design is fine. I like the ceiling graphic. But a dash of colour can spice up the place and make a big difference,” she felt. Kolkata airport authorities say they have been listening to passenger feedback and are on the verge of making several changes to address these issues. “The airport experience that we propose to offer in 2017 will be far superior to the current one.While continuing to enjoy the efficiency, there will be a lot more to delight passengers,” said airport director Atul Dixit. The biggest change that will happen is on the retail front with shops offering a wide collection of apparel, jewellery, leather shoes, bags and accessories, cosmetics, sunglasses, travel bags and accessories. The stores spread across both the arrival and departure sections in the domestic and international wing of the integrated terminal will add up to more than 14,000 sqft. Among the brands that may find a place in the terminal are Aurelia, Blackberry, Pepe Jeans, WH Smith and Zodiac in apparel, Da Milano, Hidesign, Kompanero, Lavie, Eske and Pavers in leather shoes and goods, Samsonite and VIP Bags in luggage and Color Bar and Go Color in cosmetics. Porsche Design, a subsidiary of German carmaker Porsche AG is also likely to be present in the terminal. Electronics goods and liquor are, however, unlikely to figure as the margins are very low. The duty-free section is also being enhanced to offer passengers wider choice and better shopping experience. Spread across four locations in the international wing, the duty-free retail space will add up to 6,500 sqft. While the cosmetic changes are expected to make a difference, there will be alterations on the infrastructure front too. Airport officials hope to put the three aerobridges in the old domestic airport that now lie idle back into use, thereby taking the number of aerobridges for domestic flights to 16.”We have linked the old terminal to the integrated terminal. Sometime next year, we wish to make the departure security hold area in the terminal operational so that more passengers can use aerobridges,” the airport director said. Takeoff and touchdown at the airport will also become a lot smoother with the primary runway being re-carpeted to iron out the bumps. Though the shutdown of the main runway during the day will cause some inconvenience to flight operations on days when visibility drops due to fog, when the work gets over in March-April 2017, airlines hope to get a silky smooth runway.
Bids for NaMu airport to open in January 2017
The financial bids for the proposed Navi Mumbai International Airport (NMIA), which is expected to ease the burden on the Mumbai airport, is likely to be opened in the first or second week of January, as the two-month extension given to three bidders in the fray draws to a close. In November, the City and Industrial Development Corporation (CIDCO) had given a two-month extension for financial bidding to three bidders shortlisted for submission of request for proposal (RFP) for NMIA. The first deadline ended on November 5, and the bidders had sought more time. According to a CIDCO official, three bidders have been given two months to submit the RFP. Now, the final deadline is January 9, 2017. CIDCO had received nine request for qualifications (RFQs) and, in June 2015, it had shortlisted four companies and consortia. Three companies are currently in the fray for the project. According to sources, the company or consortium that proposes the highest revenue share with CIDCO, will win the bid to develop and operate the NMIA. Justin Bailey Jersey
2016 laid foundation for high growth in aviation sector
The year 2016 will be remembered as a historic one which has provided a foundation for the high growth for domestic passengers and airlines through announcement of National Civil Aviation Policy (NCAP) and Regional Connectivity Scheme (RCS). Through NCAP, government addressed the bigger issue of domestic fliers by paving way to connect smaller cities by making airports at tier two and three cities operational in near future. The NCAP announce in the mid of the year 2016 with an emphasis on connecting regional destinations. Industry, aviation experts believes that the policy could be a foundation for the further and fast growth in the year 2017. In the year 2016, the growth rate in the Indian Aviation sector was highest in the world as it grew by more than 23 per cent in terms of passengers. Based on the preparations and activities in the year 2016, it is said that 2017 will also be an action-packed for domestic flyers right from the start. The Government’s scheme for the domestic sector UDAN (Udey Desh Ka Aam Nagrik ) has started showing its result as flights are going to start from smaller towns. It is believed that Government will help to make more than 100 airports operational which are not in operation as on date inspite of having airstrips and most of the facilities. Under the ambitious UDAN scheme, Government has announced to provide all the support and facilities to the state governments and Airlines willing to start operation from under served airports to served airports if the concerned state and Airlines want to start flights from the said airport of the state with some conditions. Government too announced financial supports in various terms to help those airports and airlines aiming to enhance regional air connectivity through fiscal support and infrastructure development. The Centre and States have come forward to provide subsidies to those operators who are willing to offer an one-hour flight between Tier II and Tier III cities at Rs 2,500. Maharashtra, Gujarat, Puducherry, Andhra Pradesh, Madhya Pradesh and Uttrakhand are among the 11 States and Union Territories that have signed up for UDAN. The NCAP envisages a roadmap to support 300 million air travellers in five years and steps to make flying affordable and convenient. The policy dwells on upgrade of airports, regional connectivity, easing of norms for flying abroad, liberalisation of the open skies regime, development of cargo hubs, chopper services, attracting investments in maintenance and ground-handling and security. Matt Irwin Womens Jersey
Rs. 3,00,000 cr plan afoot to double airport capacity
The Centre will require up to ?3 lakh crore for doubling the airport capacity over the next 10 to 15 years, Minister of State Civil Aviation Jayant Sinha said. “We will need Rs 2.5-Rs 3 lakh crore for financing airports in addition to the money spent on land acquisition. As a result of that, we need to ensure that we attract investors, both equity and debt, into the airport asset class,” Mr. Sinha told The Hindu. He said the Centre had done an extensive city-by-city analysis of airport traffic projects and worked out a plan to double the airport capacity over the next 10-15 years. At present, out of 125 airports managed by Airports Authority of India (AAI), 69 airports receive commercial flights. The existing airport terminals can handle 25 crore passengers per annum, according to AAI. Rs. 3,00,000 cr plan afoot to double airport capacity C.J. Anderson Jersey
IGI high: 50 lakh flyers a month
By the end of this December, IGI is all set to become the first airport in the country to serve over 50 lakh flyers in a month. The airport operator, Delhi International Airport Ltd (DIAL), said the travellers included both domestic and international travellers flying in and out of the Indira Gandhi International Airport. DIAL also said that among the highest travelled places from the airport, Dubai remained on top among international destinations while Mumbai topped the domestic chart. “By December 31, we will witness the highest number of passengers ever recorded in a month at any airport in the country. The data shows the airport’s efficiency in handling heavy passenger traffic and offering the best services,” said an airport official. DIAL CEO I Prabhakara Rao said the operator was excited about handling so many flyers in one month. “These are indicators of positive growth in the aviation industry, which is already growing at 20%. DIAL aims to set new standards—from the best on-time performance to highest flight movements. Breaking own records is a healthy habit and we hope to carry forward this tradition to 2017.” In the 2015-16 financial year, a record 4.84 crore passengers travelled through the Delhi airport, a record that will also be crossed this fiscal year. “In November and May 2016, the airport catered to 49.6 and 47.5 lakh flyers, respectively,” the operator said. The airport has reached an average of 1,185 air traffic movements a day, which is also a record. “On an average, the number of daily air traffic movements IGI handles is the highest in the country. We are growing at a rapid pace and are already counted among the 25 busiest airports in the world. Efforts to match the rise in numbers with adequate infrastructure and services are being made constantly,” a DIAL official said. IGI Airport provides access to more than 100 destinations around the world. “It connects to 127 destinations worldwide and is a hub for several major airlines,” DIAL said. Derek Sanderson Jersey
On ‘win-win’ runway, aviation no more rich man’s tarmac: Union Minister Ashok Gajapathi Raju
Indian aviation is no more a rich man’s prerogative and growth will continue on high trajectory in the new year, Union Minister Ashok Gajapathi Raju said as the sector saw the much-needed reforms taking off in 2016 with new policy and ambitious regional connectivity plans. 2016 bloomed as a “very meaningful year” with over 20 per cent domestic air passenger growth while scrapping of the once famous ‘5/20’ overseas flying norms and relaxing of FDI rules added to the sector’s mojo. Turning operationally profitable in the last fiscal provided the much-needed impetus to Air India amid stiff competition among domestic carriers in 2016 even as they reaped benefits of lower oil prices — a scenario unlikely to remain the same next year with changing geopolitical vibes. Against this benign backdrop, passengers have a lot to cheer with airlines — from budget to full-service ones — coming up with discounted ticket prices as they look to fill more seats even as many ancillary services come at a price. Also, biometric access for passengers has been tested at Hyderabad International Airport while tag-free hand baggage system is being tried at various airports. As Civil Aviation Minister Ashok Gajapathi Raju remarked about the aviation sector, “It is a win-win situation.” All said and done, the sector’s trajectory had its share of air pockets with the abrupt sacking of Airports Authority of India (AAI) Chairman R K Srivastava as well as confusing signals over possible capping of air fares, an issue that has lost steam. As the year wound down, this week’s incident of 15 fliers getting injured after a Jet AirwaysBSE 1.58 % flight veering off the runway at Goa airport and two planes coming close to collision at the Delhi aerodrome stoked concerns over safety. Buoyed by high passenger growth numbers and headway in bridging the skill gap, Raju described 2016 as a “rather significant and a very meaningful year” for the aviation sector. Asserting that flying is “no more a rich man’s prerogative”, Raju, known for keeping a low profile and speaking his heart, said more people are flying and that India is the world’s largest growing aviation market. “Things are much better than what they were. Of course, the scope for improvement is a continuous process. Wherever you are, there is always scope for improvement,” he told PTI in an interview. “This growth is not going to be for eternity… Once you reach your levels, there will be a flattening out of growth, but India has scope for growth and we will continue to grow. There is no reason why we should not grow,” he noted. After years of much back and forth, the government in June finally came out with the much-awaited and talked-about national civil aviation policy. The framework, rolled out for the first time since Independence, seeks to propel sectoral growth across segments — airlines, airports, cargo and MRO (maintenance, repair and overhaul), to name a few. In addition, various measures for improved ease of doing business and passenger-friendly ways are there. Seen as a millstone for the new-age domestic airlines, 2016 saw the government doing away with the ‘5/20’ norm whereby only those carriers having five years of operational experience and minimum of 20 planes were allowed to fly overseas. Paving the way for more foreign funds inflows into the aviation space, non-airline players can put in up to 100 per cent FDI in local carriers. At the same time, UDAN (Ude Desh Ka Aam Naagrik) — the ambitious regional connectivity plan to make flying more affordable by connecting unserved and under-served airports — is in the air with the wow factor. The scheme, most likely to practically take wing next month, would see fares being capped at Rs 2,500 for one-hour flights. But on the flip side, a levy of Rs 8,500 per flight on busy routes to fund the regional connectivity scheme has ruffled feathers of established domestic players even as the government is targeting long-term benefits. Staying with passengers, the government revised the compensation upwards for flight delays and cancellations, apart from rolling out digital complaints filing system — AirSewa — with the promise of speedier redressal. For the first time in 10 years, flag carrier Air India posted Rs 105 crore operational profit for 2015-16 while its subsidiary and international budget arm, Air India Express also flew into the black by making a net profit of Rs 361.68 crore in the previous fiscal. The airline also created history by launching the world’s longest flight on the Delhi-San Francisco route over the Pacific Ocean. The Naresh Goyal-promoted Jet Airways, which saw an accident at the fag end of the year after its Boeing 737 plane skidded on the runway at the Goa airport just prior to take off for Mumbai, moved its European gateway to Dutch capital Amsterdam from Brussels after nearly nine years of operating flights from the Belgian capital. During the year, budget carrier IndiGo became the first Indian airline to operate the fuel-efficient A320 Neo plane while its peer GoAir became eligible for international operations as it inducted the much-needed 20th aircraft, an Airbus A320 Neo, into the fleet. It also received government’s permission to fly to nine international airports, including Iran and Uzbekitan. 2016 also saw a new regional airline — Air Carnival — taking off while Air Pegasus was forced to ground its operations. The latter’s flying permit has also been suspended by aviation regulator, DGCA. Around the same time, Air Costa shed its regional tag and joined the league of pan-India operators as DGCA granted it national operator’s permit. The slugfest between Tata Sons and Cyrus Mistry, who was unceremoniously removed as Chairman at the salt-to-software conglomerate in late October, brought the alleged irregularities at no-frills carrier AirAsia India to the fore. Tatas hold 51 per cent stake in AirAsia India and the rest is held by Malaysian budget airline AirAsia. Mistry alleged that there were fraudulent transactions worth Rs 22 crore in AirAsia India, prompting
Shirdi airport: Maha to allot land to IOC for aviation
To make the Shirdi airport functional at the earliest, the Maharashtra government today decided to allot land to Indian Oil Corporation (IOC) for setting up aviation fuelling point. The decision was taken at the 57th Meeting of Board of Directors of Maharashtra Airport Development Company Limited (MADC) here. State Chief Minister Devendra Fadnavis is the Chairman of MADC. “Many decisions taken to make Shirdi Airport functional at earliest;allotment of land to @IndianOilcl for setting up of aviation fuelling point,” the Chief Minister’s Office tweeted. “Extension of terminal building,extension of runway from 2500m to 3200m, parking & other infrastructure were some other important decisions taken,” it added. Arian Foster Authentic Jersey