Aviation Min holds parleys with stakeholders for Budget inputs
Civil Aviation Ministry today held discussions with stakeholders to seek their suggestions for the Union Budget, days after unveiling the ambitious regional air connectivity scheme. The meeting was attended by Civil Aviation Minister Ashok Gajapathi Raju, his deputy Jayant Sinha, Civil Aviation Secretary R N Choubey and other senior ministry officials. “We had a meeting with all stakeholders. We asked them to give suggestions keeping our sector’s growth (in mind). They said they will do an exercise among themselves. Then they will come back to us. Whatever suggestions are there we will look at how to take them forward,” Raju told PTI here. Speaking on the sidelines of the launch of AAI’s new subsidiary, he emphasised that the government wants to sustain the growth in the aviation sector and also create more jobs. Albert Wilson Jersey
Vijayawada airport’s new terminal building to be completed in December
The new interim terminal building at Vijayawada airport in Gannavaram will be completed by the end of December, Chief Minister N Chandrababu Naidu announced in a meeting with airline operators at his office here on Tuesday. As per the agreement with Simplex Infrastructures Limited executing the project from October 2015, the new terminal was to be completed by January 2017. Now, it looks like it will be completed one month ahead of schedule. The new terminal building being constructed at the cost of Rs 135 crore will have 1,300 sq mts of plinth area and can accommodate 500 people during peak time. As per the half-year report, the airport had made significant progress in both air traffic and passenger footfall. Compared to 2015-16, in the first six months of the current fiscal, there has been 72 percent growth in passenger traffic and 78 percent growth in aircraft movement. During the Krishna Pushkarams festival a couple of months ago, the region saw an increase in air traffic. The higher demand has led to airline operators wanting more operations. At present five airline operators are operating in the airport and two more airline operators are on the cards to start their operations in the next few months. The Chief Minister called upon airlines operators to help increase the air passenger footfall in the State and make Andhra Pradesh an aviation hub. He wanted them to participate in the bidding with regard to air connectivity to be called by the central government shortly. He requested the airline operators to increase the air connectivity between Vijayawada-Visakhapatnam, Vijayawada -Hyderabad, Vijayawada-Tirupati, Vijayawada-Kadapa. He welcomed the suggestion of the airline operators for affordable transport from the airport to the nearest towns and cities. Jose Cruz Jr. Authentic Jersey
India could shell out $12 billion for new fighter jets
The South Asian nation’s government has sent letters to several companies regarding a new fleet of military aircraft, to be jointly produced with local firms. A potential deal, according to experts, could be worth up to $12 billion. “India is looking at paying $65 to $80 million per aircraft for 150 aircraft,” says Ben Moores, a defense and aviation analyst at IHS Jane’s. The country faces an elevated sticker price for the fighters because government rules require most of the manufacturing to take place in India. The requirement, which is part of Prime Minister Narendra Modi’s “Make in India” initiative, is believed to have been a roadblock in India’s most recent military aircraft deal with France. That deal, which originally called for French company Dassault to supply the Indian air force with 126 Rafale fighters, underwent lengthy negotiations due to disputes over the local production clause. Under the final terms of the sale agreed by India and France last month, India will only get 36 jets. Donald Trump Womens Jersey
IATA DG Calls For Further Regulatory Reform in India
The International Air Transport Association (IATA) has called for an appraisal of India’s regulatory structure, particularly as it relates to taxation, public-private partnerships in airport privatization and the country’s prospects for joining the carbon offset and reduction scheme. As aviation traffic increases “India will need to deal with the problem of infrastructure in advance or risk safety,” said IATA director general Alexandre de Juniac on his 50th day in his new position. De Juniac noted that India is one of the first countries he visited since assuming IATA’s top post. “It is not by chance, as India is one of the key markets,” he said. A recent IATA forecast projected India will surpass the UK as the world’s third largest market by 2026. Calling the new civil aviation policy “ambitious with many positive elements,” De Juniac expressed concern that India’s new so-called regional connectivity scheme not only caps fares but also imposes an additional tax on flights between major cities to fund operations. “We understand there is a need for connectivity to small towns and cities, but the aviation sector is overburdened by taxes and charges,” he warned. “We are a nice target for charges.” Sustainable development requires a cost structure with fewer taxes, he added. The regulatory structure remains a cause for unease as airlines face huge costs increases. “The Airport Economic Regulatory Authority [AERA] has been unable to preserve its independence sufficiently and has not been able to implement its own tariff orders, such as the one to reduce Delhi’s charges by 96 percent,” said De Juniac. “In addition, the hybrid till that has been imposed in the policy will further hit airline margins, which are 6 percent in a good year as compared to airports, which have a profit of 30 to 40 percent.” Tanner Kero Authentic Jersey
AAI air cargo, logistics arm takes off
Airports Authority of India (AAI) on Tuesday launched an air cargo and logistics subsidiary, which is projected to rake in annual turnover of Rs 380 crore in two years. Announcing the launch of AAI Cargo and Logistics Allied Services Company Ltd (AAICLAS), Civil Aviation Minister Ashok Gajapathi Raju said that the country is now a step closer to becoming a world class destination in cargo and logistics services. Neera Rawat would be the Managing Director while B K Mehrotra would be the Chief Executive Officer of AAI Cargo and Logistics Allied Services Company Ltd. Raju said that making India a world class destination in cargo and logistics services is his dream. “With the launch of AAI Cargo and Logistics Allied Services Company Ltd today, we are a step closer,” he added. Participating at the launch ceremony, Civil Aviation Secretary R N Choubey said that AAI Cargo and Logistics Allied Services Company Ltd expects to have “an annual turnover of Rs 380 crore in two years time”. Airports Authority of India Chairman Guruprasad Mohapatra said that its cargo department has been de-merged and corporatised into a functionally & administratively independent organisation. Patrick Mahomes II Jersey
Connectivity scheme will turn India into third largest aviation market: PM Modi
Accusing previous governments of having “no vision” for aviation, Prime Minister Narendra Modi, on Saturday, said his government is working in a “mission mode” for expansion of the sector and has put in place the country’s first integrated policy to tap the potential of small cities. He was speaking after dedicating the new integrated terminal building of the airport here, which is now the second green airport of the country after Kochi. PM Modi noted that India in the near future would probably become the third country in the world in terms of airport activity benchmarks with more middle-class families aspiring to travel by air. The Prime Minister said the country is very huge and “if you think only 80 to 100 airports not enough, then we are trying to create hurdles in the country’s growth”. He said the the country’s development can take new dimensions if the tier-2 and tier-3 cities are bought on the aviation map and noted that government was making efforts to revive the large number of non-functional airstrips and airports in the country. “That is why to promote this, the government brought out a new regional connectivity scheme under which people can travel with airfares of only Rs 2,500 for up to 500 kms distance,” he said. Attacking the previous governments, he said, “Earlier airports were set up, planes would fly but the country did not have an aviation policy. “How to take the sector forward in next five or ten years and take care of its and passengers’ needs, what should be done for common people, there was no vision in place earlier. It was just moving,” he said. “After the new NDA government came to power, for the first time since independence it formulated a new aviation policy for the country… we are working in a mission mode for expansion,” he said. The PM said the new aviation policy will take care of the consumers’ needs and the growth of the sector. Ray Lewis Jersey
Thanjavur could soon be on the air map
Thanjavur airport could soon be on the air map under the Regional Air Connectivity Scheme which the Government unveiled on Friday. RN Choubey, Secretary, Civil Aviation, said Thanjavur airport is part of the eligible list of airports which will be covered under the RCS scheme. “I had a discussion with the Chief of Air Staff on certain matters, including Thanjavur where we needed certain land to be exchanged. There is considerable cooperation and support which is forthcoming from the IAF for making commercial flying possible from Thanjavur. I expect that to happen along with certain unused airports in Tamil Nadu,” Choubey said. Chennai airport On the issue of glass falling from the ceiling at Chennai airport, Choubey said a study through IIT Chennai had confirmed that the glass panes which are falling, as a percentage of total glass that has been used, were not beyond what is the global average. “It is just that the number of glass panes which have been used is more. Even then we are taking all precautions,” the Secretary said. Study commissioned Meanwhile, the Government has also commissioned an internationally well-known agency, NATS of UK, to look at two aspects — designing of the air space bubble over Chennai and Delhi and ways to improve air navigational services which will be on par with the best in the world at these two airports as they have air space management issues. “They have assured to give us the report in 3-4 months’ time. Based on NATs’ report we will also be able to create more slots at Mumbai airport,” Choubey said. Phillip Lindsay Authentic Jersey
UDAN takes off: Government invites airlines to kickstart regional flights
The Government kick-started the regional air connectivity (RCS) scheme on Friday by inviting initial proposals from operators to fly to airports which do not have regular flights. Operators have a six-week window (till December 2) to submit their initial proposals. The Government will take two-three days to scrutinise the proposals and the entire process is likely to take 10 weeks to complete. “We hope to have the first flight (under RCS) by January. I am cautiously optimistic about it,” Ashok Gajapathi Raju, Minister for Civil Aviation, said at the launch of the scheme. Under the Ude Desh ka Aam Nagrik (UDAN) scheme , two weeks after the initial scrutiny, the Government will invite counter proposals from various operators keen to operate on RCS routes and announce the winner within 14 days. The scheme, which provides Viability Gap Funding for operators who cap fares on these flights at ?2,500, allows only one operator to fly on a RCS route for three years. “The idea of the scheme is to get those who wear Hawai chappals on to hawai jahaj (aeroplane),” said Jayant Sinha, Minister of State for Civil Aviation. Tepid response However, the industry’s response to the proposals was tepid. While Ashwani Lohani, Chairman and Managing Director, Air India, said his airline will “definitely” participate, Phee Teik, Chief Executive Officer, Vistara Airlines, said the airline will be able to make a comment on whether the policy was good or bad only after going through it. Issues to be resolved “The scheme is a step in the right direction to promote the movement of people within the country,” he said. Vistara is the brand name of the joint venture domestic airlines between Tata Sons and Singapore Airlines. Ajay Singh, Chairman, SpiceJet, while welcoming the Government’s initiative felt that there were some issues with the scheme which he will raise with the Government and hoped that they would be resolved. “One of the major issues is slot availability because small towns must connect with large towns. At the big airports like Mumbai, Delhi, Bengaluru, Chennai and Hyderabad slots must be available for RCS. Private operators (of airports) have traditionally been reluctant to give such slots. We will see whether they provide them or not. Besides, it is not clear if the concessions are provided at the smaller and larger airports. That impacts economic viability of the whole project,” he added. Singh was also of the opinion that the Government should fund such a scheme from its own budget rather than imposing more of a tax on consumers. “We oppose it from the perspective that there could surely be other ways to fund a scheme which is nationally so important,” he said. Funding RCS In fact, in what could be bad news for flyers between major cities, the Government will notify its proposal on a levy or the quantum of fee on a per departure basis on flights between the major cities by the end of the month, to fund the regional connectivity scheme. The airlines are likely to pass on this marginal increase in their operating costs to passengers which will see domestic airfares increase again. Jordan Willis Jersey
PM: New aviation policy will help unleash potential of smaller towns
India’s aviation sector has huge possibilities of growth with smaller towns unleashing their true potential with middle-class increasingly aspiring to fly, said Prime Minister Narendra Modi, after inaugurating the integrated international terminal building at Vadodara airport on Saturday. Emphasising on better connectivity between smaller towns and distant locations, Modi said the country’s aviation sector is growing rapidly and required attention. He said that for the first time since independence, the government has come out with a dedicated policy for the aviation sector. “There used to be planes, there were flights and there were fliers. But never before have we had a policy for this sector with a clear vision about its future growth.” Green airport Modi also stated that after Kochi, Vadodara has become India’s second airport to be recognised as a green airport. The airport has been developed at a cost of ?160 crore and has a capacity to handle 700 passengers per hour. “As per an estimate, in the next five years, the annual number of fliers in India will be equal to the population of the US. You can imagine the extent of potential this sector has,” the Prime Minister said, adding that the capping of fares of one-hour flights at ?2,500 will further encourage airlines to connect distant pockets. “This policy will help in reviving airports and increase employment opportunity in this sector. Air traffic in these places will have multiple economic effect on these regions.” Railway University Modi said the Centre will set up the country’s first Railway University in Vadodara to boost innovation in railway technology. “Our Railways continue to operate in the old structure. With technology and innovation we can change the face of the Railways in India. This university will play an important role towards encouraging innovation.” Bryan Bulaga Authentic Jersey
Aviation watchdog DGCA to soon get powers to slap penalties
Regulator DGCA and aviation security agency BCAS are all set to get powers to impose fines on violators, with the government preparing to amend the legislation in this regard. The move would give more teeth and leeway to the Directorate General of Civil Aviation (DGCA) and Bureau of Civil Aviation Security (BCAS) in dealing with instances of violations amid the domestic sector witnessing over 20 per cent sustained growth in passenger traffic. For providing penal powers to DGCA and BCAS, the government plans to amend the Aircraft Act, 1934 and it is likely to be taken up during the winter session of Parliament starting next month. “Today, there is no provision for levying penalties. That enablement should happen,” Civil Aviation Secretary R N Choubey told PTI. Currently, there are stringent provisions in place for DGCA to deal with violations at various levels, including those related to airlines, pilots, crew members and other entities. The watchdog can debar, suspend and even cancel the permission to fly for the carriers as well as individual pilots and engineers but cannot impose any monetary penalty. “Today, if there is any irregularity then the licence has to be suspended of the entire airline for a certain time. That is the extreme punishment. There is no provision for anything in between. “We are saying that unless something is very severe, there should be some provision for levying fine,” Choubey said. The powers of BCAS —— which primarily has the mandate to ensure security at airports —— would also be strengthened with new provisions. The Civil Aviation Ministry has already floated the draft amendments to Aircraft Act. Asked whether the ministry would be pushing the amendments in the upcoming Parliament session, Choubey replied in the affirmative. “Yes, it will come in the next session of Parliament,” he said, adding that similar provisions for penalties are there in other countries. In the draft Aircraft (Amendment) Bill, 2016, the ministry has also proposed various other changes such as increasing the quantum of fine that can be imposed under this law to up to Rs 1 crore from existing level of Rs 10 lakh. Among others, a new sub—section is proposed to be included stating that DGCA or any other officers specially empowered by the central government shall perform the safety oversight functions in respect of matters specified in the Act. Oscar Lindberg Authentic Jersey