Airlines: Traffic to zoom beyond 100 mn in 2017
With 23 per cent domestic passenger growth in the eight months till August, India has emerged as the fastest growing air travel market in the world, outperforming China, which grew 10 per cent. Brazil and Russia have seen a decline. What’s more, domestic air traffic is poised to grow around 15 per cent in 2017, on the back of low fares, improved regional connectivity and economic growth, say executives and experts. Low fares have led to a rise in discretionary travel and higher demand for airlines. Sector-wide passenger load factors rose to 83.7 per cent in the eight months of calendar year 2016 from 82.6 per cent in the corresponding period in 2015, and too on increased capacity. The domestic jet fuel price is 10 per cent lower year-on-year, giving airlines the cushion to decrease fares. On an average, fares are 10 per cent lower over last year and in July-September airlines took to last-minute discounting matching Rajdhani air-conditioned 2-tier train ticket fares. “The healthy growth underlines relatively strong demand from both business as well leisure travellers. Competitive pressures and lower fuel prices have been a facilitator through low fares,” said Subrata Ray, group vice-president, corporate sector ratings, ICRA. With induction of new aircraft, airlines are opening direct routes and this, too, is pushing passenger growth. “We expect 15 per cent traffic growth per annum for the next three years. Domestic traffic will exceed 100 million in 2017 and airlines will continue to increase capacity to keep market share,” said Boeing’s senior vice-president (Asia-Pacific), Dinesh Keskar. He said the regional connectivity scheme (first flight expected in January 2017) will further boost growth. Connor Hellebuyck Womens Jersey
Regional air link scheme may use e-auction path
The civil aviation ministry will start the bidding process of routes under the regional connectivity scheme (RCS) from early next month and it has sought the coal ministry’s suggestions on e-auctioning. The government will unveil the final RCS policy soon after which it will invite bids from the airlines wanting to fly on regional routes. The Airports Authority of India (AAI), the nodal body entrusted to implement the ambitious scheme, has written to the coal ministry to share its experience on the modus operandi of the coal block e-auction process. The civil aviation ministry will do the bidding of the routes through state-owned Metal and Scrap Trading Corporation (MSTC) — the body which conducts the coal mine and iron ore auction. A senior MSTC official confirmed the development and said the corporation was in the final stages of setting up the portal for the bidding process. Randy Bullock Jersey
Green panel nod to Chennai Airport Phase 2 modernisation project
Airports Authority of India (AAI) has been asked to conduct public hearing for its proposed Rs 2,587 crore second phase of Chennai Airport modernisation project as its gets central nod for preparing environmental impact study for the same. AAI had completed the first phase of the project four years back. Now, it has proposed to start the second phase. The proposal involves reconstruction of old terminals (T2 and T3), development of multi-level car parks and integrated common user cargo complex and augmentation of contact bays, among others. “An Expert Appraisal Committee (EAC) under the Union Environment Ministry examined the AAI’s proposal recently and gave approval for the terms of reference (ToRs),” a senior government official said. ToRs are guidelines specified for conducting environmental impact studies of projects based on which the Ministry grants or rejects clearance to a project.
Green panel nod to Chennai Airport Phase 2 modernisation project
Airports Authority of India (AAI) has been asked to conduct public hearing for its proposed Rs 2,587 crore second phase of Chennai Airport modernisation project as its gets central nod for preparing environmental impact study for the same. AAI had completed the first phase of the project four years back. Now, it has proposed to start the second phase. The proposal involves reconstruction of old terminals (T2 and T3), development of multi-level car parks and integrated common user cargo complex and augmentation of contact bays, among others. “An Expert Appraisal Committee (EAC) under the Union Environment Ministry examined the AAI’s proposal recently and gave approval for the terms of reference (ToRs),” a senior government official said. ToRs are guidelines specified for conducting environmental impact studies of projects based on which the Ministry grants or rejects clearance to a project. Ryan Tannehill Jersey
Soon, a Made-in-India aircraft will be ferrying passengers
A Made-in-India civilian aircraft could take to the skies as early as June 2017. The Dornier 228, a 19-seater, short take-off and landing aircraft, is undergoing modifications at the Kanpur unit of State-run Hindustan Aeronautics Limited (HAL). The development comes as a boost for the Centre’s Make in India programme and its Regional Connectivity Scheme. HAL already supplies Dornier 228 aircraft to the armed forces. The civilian version, which will have the same body structure as the military aircraft, will entail some modifications. “The civil Dornier 228 produced by HAL will have an increase in maximum take-off weight due to an increase in fuel to be carried, a more powerful engine, propeller blades made with composite material that will make them quieter, and a glass cockpit,” a senior government official told BusinessLine. These modifications will have to be certified by the Directorate-General of Civil Aviation (DGCA), whose officials are monitoring the progress. The Dornier 228 was also used by Vayudoot, the now-defunct state-owned regional airline that connected more than 100 small airports in the country between 1980 and 1990. Air India has indicated that it could initially acquire at least 10 such aircraft to operate regional routes. Pawan Hans, the state-owned helicopter company, which plans to diversify into fixed-wing aircraft operations, is also said to be keen on acquiring the Dornier aircraft. The Regional Connectivity Scheme is a key component of the National Civil Aviation Policy, which was unveiled in June. The scheme, which will run for 10 years, envisages providing connectivity to un-served and under-served airports through revival of existing airstrips and airports. This will be achieved through a financial stimulus in the form of Central and State government concessions as well as Viability Gap Funding for airlines to operate from such airports so that fares are affordable. The fare for a one-hour flight of approximately 500 km on a fixed wing aircraft or for a 30-minute journey on a helicopter is to be capped at ?2,500, with proportionate pricing for routes of different duration. Ivan Provorov Womens Jersey
DGCA may act against drunken aircraft engineers
With “shocking” reports that some aircraft maintenance engineers (AMEs) were found taxiing planes without undertaking the mandatory alcohol checks, aviation regulator DGCA is planning to summon safety heads of Indian airlines to ensure compliance of rules. “Shockingly, almost all airlines have been found violating this mandatory regulation,” sources in the Directorate General of Civil Aviation (DGCA) said, adding that the regulator may consider withdrawing approval to such AMEs of some airlines. Senior AMEs of airlines are licensed to taxi an aircraft from one place to another at an airport during non-operational times, generally during the nights, in the absence of pilots. As per the norms, domestic airlines are required to carry out alcohol test on all such engineers who are approved for carrying out shifting of an aircraft from one bay to another. “During a recent surveillance, the DGCA found that some of the engineers were not made to go through this mandatory alcohol test before undertaking the taxiing of the aircraft from one place to another,” the sources said. This has led the DGCA to seek a months record from all the airlines to check their compliance with norms on this count, they said. Claude Giroux Womens Jersey
Flights now cheaper than trains for most tourist destinations after introduction of surge pricing
Thanks to surge pricing introduced in Rajdhani, Shatabdi and Duronto Express coaches by the Indian railways, it will be cheaper to take a flight to most winter destinations in the country if the traveler plans the journey a few weeks in advance. Take the case of Goa, the most preferred winter destination in India, for example. Air tickets to the coastal state are as low as Rs.4,100 in the second week of December and even lower in January, when it hovers around Rs.3,600. In comparison, the train journey from Delhi to Goa will cost Rs.6,165 for 1st AC and Rs.5,310 for 2nd AC coach in Rajdhani Express.”Airline companies have introduced smart pricing. Most of the travelers are opting for flight tickets this year,” a travel agent based in Connaught Place told Mail Today. “This gives dual advantage to passengers who save on money as well as time.” Travel trade experts said airline companies were quick to take advantage of the surge pricing introduced by the railways. They point out that a day after railways introduced surge pricing last month, Air India announced their ‘Uro Jee bhar ke’ (Fly to your heart’s content) scheme, which offers flight tickets to waiting-listed train passengers at fares lower than those of two-tier AC tickets. Burdened with financial losses, both the Railways and Air India have been working at strategies to ramp up passenger earnings. The national airliner managed to reach a “break-even” point last year but it still carries an accumulated burden of losses worth approximately `50,000 crore. Losses from passenger earnings to the Railways this year are estimated at Rs.32,000 crore. Da’Ron Payne Authentic Jersey
Land allocated, Aviation Park at Bagodara finally takes off
In what could boost the aviation sector in Gujarat, the state government has set the ball rolling for establishment of Aviation Park, probably the first in India, by allocating 90 hectares of land at Bagodara near Ahmedabad. The project may help Bagodara emerge as an aviation hub just like Tata’s Nano plant transformed Sanand into a Motown, say industry players. “To be developed in a phased manner by the civil aviation department, the project will provide a framework for strengthening the aviation sector and will have a synergy of the best aerospace and avionics technologies. The park aims to raise awareness about the potential of the aviation sector among students, policy makers and people,” said Ajay Chauhan, director civil aviation, Gujarat. The park is envisaged to have a state-of-the-art theatre, a trainingsimulator complex, an aviation and aerospace management school, an aircrew training school, a helipad and an air strip, manufacturing facilities, pilots-aid complex and an info-tech area.It will have facilities for trai ning and incensing of personnel, air operation regulations as well as research and development. Matt Hendricks Jersey
Center approves carrying out environment impact assessment report of modernisation of Chennai airport by AAI
In a push to improving amenities for travelers at Chennai airport, Centre has given go ahead for carrying out environment impact assessment report of Modernisation of Chennai Airport (Phase II) by Airport Authority of India. The project seeking finalization of Terms of Reference (ToR) for conducting environment impact assessment was considered by the Ministry of Environment and Forests (MoEF) Expert Appraisal Committee (Infra-2) in its meeting held on September 21-22. “After detailed deliberations on the proposal, the Committee recommended for grant of Terms of Reference for the said project/activity,” said a senior ministry official. It was recommended that ‘TOR’ along with public hearing prescribed by the Expert Appraisal Committee (Infrastructure- 2) should be considered for preparation of EIA / EMP report for the above mentioned project. The draft EIA/EMP report shall be submitted to the State Pollution Control Board for public hearing. The issues emerged and response to the issues shall be incorporated in the EIA report. Vincent Trocheck Jersey
Aviation regulator concerned about airport congestion as aircraft deliveries line up
India’s airlines’ plan to seek a larger pie of the passenger traffic by lining up aircraft deliveries over the next few years has raised concerns due to lack of infrastructure at already clogged airports. The Directorate General of Civil Aviation (DGCA) has conveyed the concern to the ministry of civil aviation, said an official, requesting anonymity, with the aviation regulator. The official said Indian commercial carriers would add at least 40 new and leased aircraft by March 2017 and 23 more by December 2017. The regulator expects rise in congestion at large airports as Indian carriers have lined up deliveries of at least 550 planes over the next six years. On 4 October, DGCA announced the winter schedule for domestic Indian carriers with at least 21% more domestic flights set to operate compared with the year-ago period. The winter schedule starts from 30 October and runs till 26 March 2017. DGCA approved a total of 16,600 flights per week to be operated by domestic carriers compared with 13,744 flights during the winter schedule last year. Currently, there are 1,504 aircraft registered with DGCA. These include 455 aircraft owned by commercial airlines. The DGCA official pointed out that tepid response to the regional connectivity scheme (RCS) is also a cause of concern. “If RCS works, the congestion witnessed at metro and other large airports in the country would get diverted to smaller unserved and underserved airports which are being developed,” said the official. However the National Democratic Alliance government’s ambitious RCS planned to be operationalised by the year-end has been delayed and is now expected to take off next year. Another DGCA official, who also did not want to be named, said the Airports Authority of India (AAI) has been requesting DGCA for runway augmentation, but that is not possible due to current operations at large airports. AAI owns 125 airports, of which 77 are functional. India also has 370 airstrips ranging between 400m and 1km that are partially operational. Brendan Gallagher Womens Jersey