Airlines seek clarity on pilot certification while leasing foreign-registered aircraft
India’s airlines have asked the Directorate General of Civil Aviation (DGCA) to provide clarity as per new guidelines on pilot certification requirements when foreign-registered aircraft are leased and operated in India. “Currently, the only way to operate foreign-registered aircraft in India is to wet lease them, which means the pilots and crew come with the aircraft. Also, wet leases can only be done for a limited period,” said an executive who heads aircraft purchase and financing at an Indian low-fare carrier. Wet lease entails the hiring of an airline crew along with a plane. In dry lease, which is more prevalent, crew are not part of the contract. The new rules proposed by the regulator will enable operators to import foreign-registered aircraft and operate them on foreign registration with Indian crew. This will make the aircraft leasing environment user friendly, the civil aviation ministry said in November. “The DGCA’s new guidelines pave the way for us to also bring in foreign aircraft on dry leases which me ans only planes and no foreign crew need to be leased.It’s a great step, but there is no clarity on what certification the pilot flying these planes should have. Should he or she have certification of the aviation authority from the country where the aircraft is registered,” the executive said. Currently , any aircraft that is being brought to India has to be first registered with the local regulator. The rule has been seen as a hurdle in taking planes on lease by airlines at a time when India is pushing for increased regional air connectivity . Exemption from this rule will make it easier for lessors to take back their aircraft in case of a dispute with the airline operating the aircraft. Hence, the step may encourage them to formulate easier leasing contracts with lower rentals. The proposed guidelines are to help carriers under the new regional aviation policy aimed at connecting small cities and towns. “Operation of foreign registered aircraft are ideal and convenient for startup airlines, when exploring new routes or during seasonal fluctuations and sudden peaks in demand,” the new rule says. Jaleel Scott Authentic Jersey
‘Levy on airlines can disrupt competitive conditions’
Describing India as among the “most open” aviation markets, international airlines grouping IATA’s chief Alexandre de Juniac has said the country stands to benefit from the regional air connectivity plan but imposing levy on carriers can disrupt competitive conditions. While being appreciative of the Indian government putting in a “consistent plan” for the aviation sector, Juniac also emphasised the need to have the right infrastructure and lower costs for the airlines. “In general, we are not favouring levies because we think that it is a disruption or disturbance in the competitive conditions,” Juniac told in an interview here. His comments come against the backdrop of the government levying up to ?8,500 per flight on major routes from December 1 in order to fund its ambitious regional connectivity scheme. The scheme — UDAN (Ude Desh ka Aam Naagrik) — seeks to connect small cities by air as well as make flying more affordable for the masses. “Regional connectivity is good for air traffic but using levy, tax or cross subsidy system, let’s name it as it is, is not convincing,” he said, adding that it is being opposed by many operators as something which would not be efficient. To provide viability gap funding for the flights operated under UDAN, a levy would be imposed on every departure on major air routes such as New Delhi, Mumbai, Chennai, Hyderabad, Bengaluru and Kolkata. Under the scheme, fares for one-hour flights would be capped at ? 2,500. Brandon Montour Jersey
Aerospace and aviation industry should double turnover in 5 years: Ananth Kumar
Considering the huge potential the aerospace and aviation industry holds, the country should double its turnover in the next five years, said Union Minister Ananth Kumar. Addressing a conclave organised by the Bangalore Chamber of Industry and Commerce (BCIC) on Indian aerospace and aviation industry, Kumar said: “If the Indian aerospace and aviation sector needs to grow, we need to set up specific growth targets. This sector has all the potential to exceed its own targets. The business turnover by public sector, which is $4 billion, needs to double.” Similarly, the MSME sector, which plays an important role, needs to grow several times from its current minuscule $0.5-billion base. “We can do that. We need to start to dream of higher turnover from today’s conclave itself,” he said. He further added: “This will not happen overnight, we require five years of confabulation and constantly talking with industry players and vigorously pushing it with the Central and the respective State governments. A lot of work is needed to achieve this target, only then can we realise the dream of making the Indian aerospace and aviation sector world class.” Kumar listed out the potential of the industry and said India is projected to be the second-largest global player in civil aviation by 2030. The fleet size is expected to increase by nearly 2,000 wide-body aircraft. The general and regional transport aircraft are also expected to grow by about 1,000 over the next 10-15 years. The demand for civil helicopters, too, is expected to grow by a similar number. Just in military aviation, the projection is that there would be a demand to the extent of $100 billion over the next decade, with an offset creation of about 35 per cent. Kumar said: “All in all, this industry presents a huge opportunity and we need to be ready with a combination of the right policy intervention and the right amount of encouragement in the form of reducing ease-of-doing business parameters. “It is a matter of great pride for our government that as a result of several path-breaking policy changes and interventions, we are seeing the entry of the private sector in a big way. Many of them had taken initial steps, but now, most are beginning to accelerate and scale up their plans. The fact that both large Indian business houses and global majors are showing keen interest, augurs very well for this sector and I expect that we are on the cusp of a phase of explosive growth in this sector.” Austin Hooper Authentic Jersey
Government has infused Rs 23,993 crore funds in Air India: Civil Aviation Minister
The Government said it has already infused funds to the tune of Rs 23,993 crore in the National flag carrier Air India from 2011-12 till November this year. Air India is surviving on a Rs 30,231 crore bailout package extended by the previous UPA government in 2012 for a 10-year period and also equity support for payment of principal/interest of the non-convertible debentures. The financial support approved under the airline’s turn around plan/financial restructuring plan include induction of upfront equity of Rs 6,750 crore, equity for cash deficit support of Rs 4,552 crore from FY 2012-13 to FY 2017-18 as well as equity for already guaranteed aircraft loan of Rs 18,929 crore till Fy 2012. “An amount of Rs 23,993 crore has already been released as equity support to Air India from the period of FY 2011-12 to the end of November, 2016,” Civil Aviation Minister Ashok Gajapathi Raju said in a written reply in Lok Sabha. In reply to another question, the Minister said that the total outstanding loans on Air India were Rs 46,570,35 crore as on September 30 this year. Replying to another question, Raju said that the gross value of the fixed assets (including surplus assets) of the company (Air India ) as on March 31, 2016 stood at Rs 46,074.07 crore, where as the long-term borrowing were Rs 35,806-crore. However, the company has been constantly improving its operational and financial performance under the implementation of TAP, he said in reply to a question. Eric Murray Authentic Jersey
Airlines capacity to jump to 25% over next 3-4 yrs: Icra
The airlines are set to add an additional capacity of 20-25 per cent over the next three to four years, even as mounting competition and price war are eating into their yields impacting the bottomlines, says a report. Despite falling yields, due to increasing competition and the resultant hit on profitability, the airlines’ capacity addition is set to clip at CAGR of 20-25 per cent over the next three-four years, domestic rating agency Icra said in a report . “The industry-wide ASKMs are slated to grow at a strong CAGR of 20-25 per cent over next 2 to 4 years. This will be driven by sizeable order backlog of the market leader Indigo, and also at GoAir, Jet Airways and SpiceJet coupled with the expected fleet expansion of Vistara and AirAsia. “The capacity expansion will also be boosted by the launch of two new airlines, Air Carnival and Zoom Air,” the report said. Domestic air traffic continued its healthy growth this fiscal, with an annual growth of 22.5 per cent in the first half of current financial year, making the domestic market the fastest-growing aviation market in the world. The comparative numbers for the second growth market of Russia is way below half of it at around 10 per cent, while China is at around 6 per cent and the US, the largest market at 3-4 per cent. Capacity addition by new airlines and rapid capacity expansion by existing carriers have resulted in a 20.4 per cent annualised growth in available seat kilometers (ASKM) in the first half, leading to more intensification in competition, the report said. One of the major growth drivers is the steep fall in jet fuel prices in 2015-16 had enabled airlines to reduce fares and the resultant spike in passenger growth numbers to 85 million. The industry is expecting the country to cross the century mark for the first time this financial year. But fuel prices began to climb up again from March 2016 and has since then jumped by a whopping 41 per cent sequentially over the past nine months, which has eroded this cushion. Frederik Andersen Womens Jersey
In 2017, global airline industry sees ‘safe soft landing in profitable territory’
The global airline industry expects to earn $35.6 billion during 2016, a record profit, though it is slightly less than the original expectation, said Alexandre de Juniac, Director General and Chief Executive Officer, International Air Transport Association (IATA), on Thursday. In June this year, IATA had estimated that the global industry will report a profit of $39.4 billion. But despite the dip in profitability, good news for the global industry will continue in the next year, too. de Juniac indicated that the global airline industry expects to report a net profit of $29.8 billion during 2017, being eight years in the black for the industry. “This (2017) will be the third year in a row where the return on invested capital (7.9 per cent) will exceed the cost of capital (6.9 per cent)… This is the best performance in the industry’s history, irrespective of the many uncertainties we face,” de Juniac said in his address at the start of the Global Media Day event here. Brian Pearce, Chief Economist, IATA, pointed out that the conditions are expected to be tougher next year with higher fuel costs and a still relatively weak global economy. “But we still forecast that the industry will generate an above-cost of capital of 7.9 per cent. In net profit terms, that’s just a fraction under-$30 billion,” Pearce said. The forecast for 2017 is based on Brent crude oil prices being at around $55 a barrel, a rise of $10 a barrel since this year. “This (Brent oil price being at around $55 a barrel despite the oil producers freezing production) is because the market is still over supplied,” Pearce said. Another reason for the positive outlook for 2017 is also based on “slightly stronger” economic activity and confidence in many parts of the globe, which will help offset the slight increase in the price of Brent crude next year. “We are expecting to see the global industry carry a little less than 4 billion passengers during 2017 and creating value for investors next year,” Pearce said. The Director General added that the airlines are in better shape to remain profitable while facing the many challenges, pointing that as the reason “we see a safe soft landing in profitable territory for 2017.” During 2017, the strongest financial performance is likely to be delivered by airlines in North America with net post-tax profits at $18.1 billion, slightly down from $20.3 billion expected in 2016; while the carriers in the Asia-Pacific region are expected to generate a net profit of $6.3 billion, down from $7.3 billion in the previous year. The net margin for the North America carriers is expected to be strongest at 8.5 per cent with an average profit of $19.58 per passenger; while for carriers in the Asia-Pacific region, with net margins of 2.9 per cent on a per passenger basis, profits are anticipated to be $4.44. Indian carriers are included in the Asia-Pacific region. Linval Joseph Jersey
Plans for specialised forces for civil aviation, airports junked
Government’s plan to raise specialized force for guarding the civil aviation sector has been shelved, even as the global civil aviation body, International Civil Aviation Organization (ICAO) had recommended India to put up an effective safety mechanism and specialized security force in the wake of terror attacks and suicidal bombings at major international airports globally. Interestingly, ICAO is visiting India in March 2017 to ascertain India’s safety preparedness at airports. ICAO’s role assumes significance given the fact that the US Federal Aviation Administration (USFAA) had downgraded India’s civil aviation sector for 15 months – between January 2014 and March 2015 – over safety oversight, based on ICAO’s feedback and recommendations. However, a high level meeting of the Ministry of Civil Aviation (MoCA) authorities held recently to ascertain security preparedness at airports especially keeping in view ICAO’s team has junked the idea of having a specialized police force for civil aviation and airports. Instead, it has decided that more men from Central Industrial Security Force (CISF), a paramilitary force, would be drawn and make them better equipped to ensure further security upgrade at airports. Terrelle Pryor Sr. Authentic Jersey
Airbus Corporate Jet gets new order
Airbus Corporate Jets has won another commitment for an ACJ320neo, highlighting the continuing success of its new aircraft family. The latest deal adds to the seven orders already won by the ACJ320neo Family, taking total orders and commitments to eight, comprising six ACJ320neo and two ACJ319 neo aircraft. Capitalising on new-generation engines and Sharklets at the wingtips, plus other improvements, the ACJ320neo Family delivers a 16 per cent fuel saving and corresponding range increase. “The ACJ320neo Family further improves a proven and successful design, allowing customers to take more of their lifestyles to even more of the world,” said Airbus Chief Operating Officer, Customers John Leahy. The ACJ319neo can fly eight passengers for more than 15 hours, or 6,750 nm/12,500 km, while the ACJ320neo can carry 25 passengers for over 13 hours, or 6,000 nm/11,100 km. Airbus corporate jets have the widest and tallest cabins of any business jet, while being similar in size externally, giving passengers a better travel experience. They do this by allowing travellers to move freely around the cabin in flight – unlike traditional business jets – and are thus better for business and for socialising with family and friends. They also have the technologies that customers have come to expect in business jets today, such as fly-by-wire controls, time and cost-saving centralised maintenance, and extensive use of weight-saving materials such as carbonfibre. These and other features mean that Airbus corporate jets deliver more value to business jet customers, giving them more for their money as well as a better way to fly.ACJ320neo Airbus corporate jets are derived from the world’s most modern aircraft family, designed to fly thousands of hours a year in the demanding conditions of airline service, so they bring a heritage of reliability that is the envy of other business jets. More than 180 Airbus corporate jets are in service around the world, and they are flying on every continent, including Antarctica. Cedric Ogbuehi Womens Jersey
AirSewa to make grievance handling more transparent: Rajiv Nayan Choubey
Civil Aviation Ministry recently launched AirSewa, an app that fliers can use for putting forward their grievances against airlines and airports. Civil aviation secretary Rajiv Nayan Choubey spoke to Shahkar Abidi on the sidelines of an event held in New Delhi where he discussed about changes that are taking place in the industry as part of the new aviation policy. Small aircraft operators are concerned that the current cap on viability gap funding (VGF) under the Regional Connectivity Scheme (RCS) is not feasible for them. The ministry, in fact, studied the demand for more subsidies for smaller aircraft and found it indeed to be not feasible at current cap. So for relatively smaller aircraft, say, a 20-seater aircraft, the VGF will be substantially higher. It may be around 30% higher than those for ATRs, which may make their operations feasible. We are going to put it out soon. Marcus Martin Jersey
BAOA pitches for government support for business aviation
Lobby group Business Aircraft Operators Association (BAOA) on Monday called for multiple government interventions to ensure the sector’s rapid growth. The association unveiled its first industry report authored by Dubai-based consulting firm Martin Consulting in New Delhi. The report found that business aviation has grown by a meagre 2% over the last five years, and provided with the right kind of government support India could be looking at a best case growth scenario anywhere between 2% and 12%. The report rued that the new civil aviation policy clearly left out business aviation, despite projections of the sector’s direct contribution to the gross domestic product to the tune of Rs.1,762 crore by 2030. Byron Buxton Jersey