Land deal for Patna airport expansion likely today
The Airports Authority of India (AAI) and Bihar government will sign the land transfer agreement on Tuesday for expansion of the terminal building of Jayaprakash Narayan International Airport. Union civil aviation secretary R N Choubey and Bihar chief secretary Anjani Kumar Singh would hold a meeting for transfer of around 13 acres of land near the airport. Apart from Patna airport, discussions will also be held for development of terminal buildings at the Indian Air Force airbase at Purnia and Darbhanga as well. Besides, the AAI is also seeking 200 acres of additional land at Gaya International Airport for development of its apron and a new terminal building. “The AAI board is keen on commencing the works on expansion of terminal building at Patna airport at the earliest and complete it in two years time,” a senior AAI official said. The AAI board gave its consent last month for transfer of around 11 acres of its land at Anisabad to Bihar government in return of 13 acres of land of the state hangar, depot of Indian Oil Corporation (IOC) and 6.5 acres of land owned by the Special Task Force (STF) adjacent to the airport. Henri Jokiharju Authentic Jersey
New norms hit airlines’ ancillary revenue
The government’s passenger-centric initiatives such as limiting cancellation charges and reducing passenger baggage fees have hit airlines’ revenue from ancillary sources. IndiGo, which announced its September quarter results last week, saw its ancillary revenue record a sequential decline of 3.8 per cent, compared with the double-digit growth in previous quarters. For the September quarter, revenue from ancillary sources stood at Rs 558.4 crore compared to Rs 581 crore in the April-June period. The same had grown 9.2 per cent and 3.1 per cent, sequentially, in the previous two quarters. “The ancillary revenue figures were impacted due to the Director General of Civil Aviation (DGCA)’s new rules, limiting charges on excess baggage and booking of tickets closer to the date of departure due to low-ticket prices,” the management said during a conference call with analysts. The decline is likely to be similar for other airlines as well. Charlie McAvoy Jersey
Level flight: Charting India’s airline course
Last month, Jet Airways introduced wide-body services on two of its busiest domestic routes — Mumbai-Delhi-Mumbai and Delhi-Kolkata-Delhi — in a move that significantly enhanced connectivity, besides boosting capacity on these key sectors. The double-aisle Airbus A330 that was deployed, puts the airline in a niche club of Indian carriers that boast of such large aircraft (Jet Airways has Boeing 777s too), enabling them to fly long routes, non-stop. Only in this case, the airline found huge demand in the domestic market itself, compelling it to ply one of its big boys. According to Jet Airways Chief Commercial Officer Jayaraj Shanmugam, “The Indian domestic sector is witnessing breakneck growth in demand. Our fleet mix comprising both wide-body and narrow-body aircraft is our strength, and helps us respond to market conditions and provide enhanced travel options to our guests.” Joining Jet Airways in the wide-body boat is flag carrier Air India, which boasts of wide connectivity to Europe and the US, thanks to its fleet of Boeing 747s, 777s, and 787s. Air India Chairman and Managing Director Ashwani Lohani says, “Our profitability mantra is ‘fill more, fly more!’ We are bullish on increasing occupancy and flying to more destinations.” Indeed, India has taken off to a flying start with a burgeoning airline industry. The sector has opened to a big blue sky of opportunities, owing to a series of measures taken by the government, along with the economy itself welcoming several trends that have propelled it further. Amar Abrol, the CEO of young budget carrier AirAsia India, explains that India’s civil aviation industry is on a high-growth trajectory. “India aims to become the third-largest aviation market by 2020, and the largest by 2030. Factors such as low-cost carriers, FDI in domestic airlines, advanced IT interventions and growing emphasis on regional connectivity have given a new lease of life to the growth of the Indian aviation sector,” he opines. Despite such high scope for growth, the airline industry throws many questions that require some deep thought and analysis. It is imperative to understand the uniqueness of this market, as well as introspect its challenges, and find solutions.
Airport at Dabolim won’t be shut: Parrikar
Defence minister Manohar Parrikar said the international airport at Dabolim will not be shut down even after Mopa international airport starts operations. Also, four-lanning or six-lanning of NH 4-A and 17-A will be done simultaneously along with Mopa airport, Parrikar said after Prime Minister Narendra Modi on Sunday unveiled a plaque to lay foundation stone for the proposed greenfield airport at Mopa, at a function held at Shyama Prasad Mukherjee stadium, Taleigao. Parrikar said, “There is no scope for further expansion of the Dabolim airport.” The annual traffic at Dabolim airport is 5 million while its capacity is 2.7 million. “The traffic flow at Dabolim is double of its capacity,” Parrikar said highlighting the inevitability of the airport at Mopa. Two other projects, that were also launched on Sunday, include infrastructure for building mine counter measure vessels and commencement of construction of Coast Guard offshore patrol vessels. Roberto Alomar Jersey
Still lacks connectivity to smaller cities, abroad
The Coimbatore airport is still lagging behind some other airports in the two-tier cities in terms of passenger traffic, largely due to the lack of connectivity to smaller cities in the country and abroad. While the city has recorded a 22% rise in passenger traffic, higher than the 15% increase recorded by Trichy airport and 19.4% rise by Calicut airport, it has fallen way below Madurai airport which recorded an increase of 37.9% passenger traffic and Trivandrum, where passengers rose by 41.2%. In Coimbatore, travel agents said, its base of flyers has reached a saturation point over the past few years, while there was more room for passenger traffic growth among Madurai’s youngsters, businessmen and travellers. “Unlike Coimbatore, which is a more of a cosmopolitan city and enjoys better awareness levels, awareness regarding cheap fares offered by flights has caught up in Madurai only recently and hence the sudden rise in air traffic from the temple city,” said a former office-bearer of Travel Club, Madurai. Bobby Orr Jersey
‘Nashik needs air connectivity with major cities’
Industries and Manufacturers’ Association (NIMA), an apex body of industries have engaged in promoting industrial development across the district. In an interview with TOI’s Tushar Pawar, chairman of infrastructure committee of NIMA, Manish Rawal talks about various activities the association has initiated and their efforts in promoting industrial development across the city. What is the current industrial scenario here? The industrial sector is passing through a phase of recession which has seen a slowdown across industries for the past few years now. The growth of these industries is adversely affected because of recession. In the meanwhile, we are expecting some improvement in sales and growth in the next few months. The Centre’s decision to bring in Goods and Services Tax (GST) is definitely a boost for the industries to fetch foreign investments in the long run. The profitable outcome of GST will take some time. What are the infrastructural issues? There have been several infrastructural issues we deal with on a daily basis. The civic administration has just developed roads for Rs 70crore at Satpur and Ambad industrial estates of Maharashtra Industrial Development Corporation (MIDC). But, almost 20% of the streetlights in these industrial estates do not function. The lack of drainage lines is another major issue. Though industries have soak pits but most of the time, the effluent comes on the road causing inconvenience for the common public. We have been demanding construction of drainage lines in MIDC areas for the past 15-20 years, but we have still not heard from the municipal corporations. But, Nashik still lacks air connectivity. We have an international airport at Ozar which was constructed jointly by the state government and Hindustan Aeronautics Ltd (HAL). But, the air services are yet to commence here. is a good potential growth for the aviation industry here. We want to start the air connectivity with major cities of the country. There As per a survey which was recently conducted, around 30,000 industrialist and business people from Nashik travels by air to other destinations across the country. Maximum people fly to Bangalore followed by Delhi and Chennai cities. Hence, we want flights from Nashik to Bangalore and Delhi. C.J. Anderson Womens Jersey
APAI terms govt’s decision to charge levy to fund RCP as”regressive & unwarranted”
Apprehending a “spiralling” effect on airfares in view of the government’s decision to charge a levy up to Rs 8,500 per flight on major routes to fund the ambitious regional air connectivity, fliers body (APAI) has termed the move as “regressive and unwarranted”. The Regional Connectivity Plan (RCP) packaged as a scheme “to make flying a reality for the small town common man” is more a welfare and inclusive measure, which, based on its objective, should be spearheaded by the Central and state governments, Air Passenger Association of India (APAI), said. Civil Aviation Secretary R N Choubey had last week announced government’s decision to levy up to Rs 8,500 per flight on major routes to fund the regional air connectivity scheme from December 1. With the levy, that would be collected from the airlines for each domestic departure to major routes, the government estimates to have Rs 400 crore for Regional Connectivity Fund (RCF), Choubey said. “Another 20 per cent (funding) will come from state governments. We are roughly looking at around Rs 500 crore per year available in the kitty,” he had said. “The reported statement of the Civil Aviation secretary that the government would collect Rs 400 crore from air carriers annually by charging additional levy on scheduled flights between major cities starting from December 1, 2016, to fund RCF is most unfortunate since APAI had vehemently opposed the imposition of regressive levy at all times,” APAI President D Sudhakara Reddy said. Nicklas Lidstrom Jersey
Prem Watsa’s BIAL stake buy still stuck at security clearance
Security clearance for Prem Watsa’s investment in Bengaluru airport is turning out to be a headache for authorities as the Centre dithers over the issue, raising uncertainties over the stake purchase by the Indian-origin Canadian billionaire. Karnataka has declined to get involved in the process of granting security clearance for the transaction after the Ministry of Civil Aviation (MoCA) sought its comments on the matter, according to sources aware of the developments. Delays in obtaining the approval are holding up the additions of a second runway and a terminal at Bengaluru airport even as passenger and cargo traffic surge. Watsa’s Toronto-based Fairfax Group in March struck a deal to buy a 33% stake in Bangalore International Airport (BIAL) from Hyderabadbased GVK Group, and later another 5% stake from Flughafen Zurich AG. The transactions cannot go through without security approvals from the Union government. According to sources in Delhi, the Ministry of Home Affairs (MHA) has already communicated to the MoCA its go-ahead for granting the clearance. The civil aviation ministry, however, wrote to the Karnataka government seeking its comments on certain security aspects and on proposed appo intments to the BIAL board. The State government has taken the view that granting the clearance falls within the realm of the Union Home Ministry, and that it does not have the expertise to vet security aspects in cases involving foreign direct investments in strategic sectors. Karnataka Infrastructure Minister RV Deshpande confirmed the State government’s response to MoCA. “There has been a delay at Delhi in clearing the stake sale by GVK group. The traffic volumes at BIAL have surpassed projections, requiring us to add a second runway and terminal at the earliest. I hope the Centre will expedite the process,“ he told ET. Quess Corp. “It is not as if (Wat BIAL’s board has kept pending key decisions, related to capital investments and award of contracts, as these involve huge longterm commitment of resources and they do not want to proceed in the absence of the largest stakeholder. Security aspects in BIAL’s case, according to an expert, cover the relationship between the two nations involved, and the backgrounds of the individuals and their firms seeking to make the investment. Watsa is a person of Indian origin and Fairfax group has made investments in India through Thomas Cook and sa) is investing for the first time,“ this expert said, declining to be identified. A former Civil Aviation secretary told that matters related to security clearances come un der the domain of the MHA, and a correspondence such as this betrayed either a lack of application of mind or wilful delay. “The whole purpose of this stake sale by GVK Group is to raise some funds with which it can pare its debt. A prolonged delay will only defeat this purpose,“ the officer said, also seeking anonymity. Bengaluru airport handled more than 11 million passengers in the January-September period, the traffic increasing 22.4% from a year earlier and at a faster pace than at the Delhi, Mumbai and Hyderabad airports. Cargo traffic increased nearly 11%. Gaylord Perry Womens Jersey
Jet Airways sells 3 A330 planes, posts modest profit of Rs 85 crore
Jet Airways posted a muted profit growth in Q2 FY 17 on account of provisioning for potential loss on sale of its three Airbus A330 aircraft. While revenue grew 3.2% to Rs 5,682 crore and the airline’s fuel cost dipped, consolidated profit grew 2.4% to Rs 85 crore on a year-on-year basis. In Q2 FY16, the airline made consolidated profit of Rs 83 crore. Sources said Jet Airways has entered into a sale agreement to sell three of its A330-200 planes currently on lease with Turkish Airlines to a lessor. The airline said it had made a provision of Rs 129 crore for potential loss from sale, it said in notes to the profit and loss account. Jet Airways board approved the airline’s Q2 result on Friday. Interestingly, both representatives of Etihad Airways – its CEO James Hogan (who is vice chairman of Jet) and CFO James Rigney did not attend the meeting. “They were travelling in Europe and hence could not attend,” an airline executive said. Etihad has 24% stake in Jet Airways. An airline spokesperson did not immediately respond to an email query. The airline said it was improving its fleet utilisation and network and had lowered net debt by Rs 252 crore in second quarter FY 17. Preston Brown Womens Jersey
UDAN flights on popular metro routes to cost more
If the Narendra Modi government initiative ‘UDAN’ (Ude Desh ke Aam Nagrik) scheme excited you to enjoy your first flight – there is bad news. The government on Friday announced increase in the base fares on popular routes from the metro cities. The scheme aims to connect small places by air, which basically involves Tier 2 and 3 cities across nation. If there is no vacant seat on flight then you’re unlikely to pay more than Rs 50 each way; if all seats are not sold out, citizens will pay additional Rs 100. Popular routes like Delhi, Bengaluru, Chennai and Kolkata will become a bit expensive. The longer the duration of flight higher the fare. The government has cemented three categories: Rs 7,500 for flights covering 1,000 km, Rs 8,000 for for a distance of 1, 500 kms, and Rs 8,500 for distances above 1,500 kms. At the launch of ‘UDAN’ its “Regional Connectivity Scheme”, the government said that flights that are an hour long would cost just Rs 2,500 and vowed to subsidise these cheap flights in under-serviced areas. The government expects to collect around Rs 400 crore with this new hike, this will boost ‘UDAN’ and help for a peaceful take off in January 2017. Zay Jones Womens Jersey