Ex-Vayudoot MD plans franchise model airline
Want to own your own airline? Harshvardhan — former Vayudoot chief — might have a plan for you. Eager to start a second innings in the Indian skies, as an entrepreneur he is bringing the franchise model of ownership — typically followed by global QSR chains like Dominos and MacDonalds. He is envisaging Star Air Consulting, his aviation consultancy firm, to become an umbrella organisation for number of regional airlines set up in small towns of India. The model unique to the Indian market will see Superfast Airlines as the holding company, under whose brand name the entrepreneurs can own their own airline. “Aviation in India is a great but a tough market. Not many can crack it as it requires massive capital investment and business planning. We want to create one or two small aircraft operators. They will be the owner of that aircraft. We would help the contract for bulk orders and will be subleasing it to the individual operator,” Vardhan said. “We want to create a company where the risk profile for smaller players is very less and this form of pure franchise model is being tried for the first time in India,” he added. Vardhan’s SuperFast Airlines will help the franchisee operators in functions like aircraft acquisition, technical and operational maintenance, crew training and marketing initiatives. “Post Kingfisher, it has become difficult for an Indian operator to lease aircraft, even more when you operate one or two aircrafts,” Vardhan said. It will also help in pilot training and is in talks with a third party MRO (maintenance, repair and overhaul) operator for providing technical services to the airlines. “Basically we would be providing all fundamental support including training and technical support. The idea is to create a a national organisation, so that the profile becomes better and the market acceptance of those individual operators becomes better among other stakeholders,” Vardhan says. Carl Banks Womens Jersey
Lawmakers Eye Quota On Private Carriers, Airlines Say No
At a time the aviation sector is struggling to cut down on losses, India’s lawmakers, who enjoy quota in railways and travel like maharajas in the loss-making Air India, are eyeing reservation in private carriers. The lawmakers say when parliament is in session, travelling by air is inconvenient, since seats are not always available. So on Monday, the committee on Salaries and Allowances — a standing committee that deals with privileges for lawmakers – met the representatives of airlines to explore the possibility of reserving seats on private carriers. “Some MPs had grievances that they couldn’t find seats when they travelled. So they asked if they could be reserved during the session,” said a lawmaker. But the airlines turned down the request, saying blocking of seats was not possible. Seats, they said, were “perishable commodities” and an empty seat would add to their loss. Some lawmakers had also wanted the use of the electronic buggies since the Delhi airport’s Terminal Three is a bit of a trek from the gates to the baggage pick-up area. Marcus Peters Jersey
Questions galore over govt’s nod for Mangalagiri airport
Even as the land acquisition process is going on for Gannavaran airport modernisation, the state government’s approval for a greenfield airport at Mangalagiri, just 35 km away from it, has given rise to many apprehensions from various quarters. Experts, including those from the aviation sector, point out that a second airport in such close proximity will neither be feasible nor economically viable. The state government, at its cabinet meeting last week, has cleared the proposal for construction of the airport in 5,000 acres at Mangalagiri. This has raised many an eyebrow as hundreds of crores of rupees are being spent on the Gannavaram airport for developing it in such a way that it can even handle international flight services. M Subba Rao, former employee of the Airports Authority of India (AAI) and now a resident of Gannavaram who had served as the director of various international airports at Calicut, Bengaluru and Bhubaneswar, said that it is neither feasible nor viable to have both the airports. “It will not be viable as it is just 35 km away from the existing airport,” he said. He further said that there is no clarity over the issue as it is only in the preliminary stage wherein the state cabinet had taken a decision in this regard. “The Directorate General of Civil Aviation has to approve it. Then a team will study the topography of Mangalagiri. Only after a thorough study, a decision will be taken,” he said. However, the voices against the government’s proposal are growing stronger as industry bodies and other experts point out that there is no need for a new airport in the capital region as the existing one at Gannavaram is not being used to its full capacity. “The proposed greenfield airport at Mangalagiri will not be viable as there is no such demand. When the government is planning to connect the capital region with an outer ring road (ORR) of 210 km and when so much money is being spent on the existing airport, I don’t understand the logic behind the decision,” said Muthavarapu Murali Krishna, president of Andhra Pradesh Chambers of Commerce and Industry Federation (APCCIF). He said that an airport of such capacity (in 5,000 acres) is not required at least in the next 20 to 30 years. Trey Hopkins Jersey
New Pune airport should take three years to complete but can’t give a definite deadline, says Ajay Kumar
Is Pune finally getting a new airport? After waiting for so many years, is it finally happening? Pune badly needs an airport of its own. Technically, the Chief Minister and the Airports Authority of India has zeroed in on the land. Roughly, area will be 18 square kilometres. But the final site has to be decided by the Maharashtra Airport Development Corporation (MADC). The area will certainly touch many villages and may also require rehabilitation. But from what I know, the selected site does not have much cultivation or high residential density. Manoj More: Do you think it’s an appropriate site? It’s basically appropriate from the construction point of view. It’s about 40-45 kms away from the Pune City. I can’t say right now when such a huge infrastructure is there, about new road and rail infrastructure. A new airport—being 40-odd kilometre away from the centre of the city-— it’s not a long distance. In fact, it’s a must because a lot of land is required for the development. Hence, the airports can’t be very close to the city. Sunanda Mehta: The new airport has been delayed for so long. In the meantime, Pune has grown tremendously. So what is it that the city has lost during these years? The growth of air traffic and the potential is phenomenal. Last year, we grew at the rate of 29 per cent. This year, we are growing at 25-per cent point. Thus we have seen a 65 per cent growth. Last year, we handled about 5.5 million passengers. This year, it might cross 6.6 million. That’s too great a growth for a city. This city has a great potential I would say. Atikh Rashid: In last few months, the AAI and Civil Aviation Ministry has moved fast to increase the capacity of the Lohegaon Airport and the newly-acquired 15 acres of land. Will the latest announcement of finalisation of the site for the new airport slow down this development of the Lohegaon Airport? No. Basically, the new airport is not a replacement for this airport. This development is to meet the short-term demands. Four new aircraft bays will come up of Code-C type on the additional land that we have got. Also, buildings of a volume 35,000 square metre will come up, which will also enhance the amenities at the airport. Ajay Khape: What would be the difference between having an airport at the new proposed site in Purandar as opposed to the earlier location at Chakan? I can’t compare these two locations. I have not seen the location (Chakan) at all. That site is not technically suitable. That was the only problem. They were not suitable from the aeronautical point of view. Mike Napoli Authentic Jersey
First flight under regional air connectivity likely in January, says Civil Aviation Minister
Government expects the first flight under the regional air connectivity scheme, which is in advanced stages of finalisation, to take off in early January 2017, Civil Aviation Minister Ashok Gajapathi Raju has said. The Regional Connectivity Scheme (RCS), which seeks to provide air services between un-served and under-served areas, is part of larger plans to boost the domestic aviation sector, which is clocking over 20 per cent passenger growth. Raju , under whose stewardship the civil aviation policy was announced in June, said work is at an advanced stage with respect to RCS. “We expect the first flight under RCS to take off by the end of this year or early January 2017,” he told PTI. The civil aviation ministry has already signed memorandums of understanding (MoUs) with various states, including Gujarat, Maharashtra, Chhattisgarh and Jharkhand, for implementation of RCS. The scheme refers to operation of an air transport service between any two airports, of which at least one has been declared by the central government as un-served or under-served. There are 394 un-served and 16 under-served airports. Last week, the Airports Authority of India (AAI) said as many as 20 un-utilised airports are ready to start operations for regional flights. A slew of incentives are being proposed under RCS, including Rs 2,500 cap on airfare for one-hour flights. Airlines under RCS will be extended viability gap funding (VGF) while the states concerned are required to offer certain concessions such as providing police and fire services free of cost. Dion Sims Womens Jersey
CIAL reports 21% growth in FY16 net
Cochin International Airport Ltd has registered 21 per cent growth in its net profit at ?175.22 crore in FY16. The company’s turnover also posted a 27 per cent growth at ?524.53 crore. The director board, which met here on Tuesday, also ratified a proposal to release 25 per cent dividend to the 18,000 investors, resulting in the total dividend pay out of nearly ?110 crore, an increase of 178 per cent since 2003-04. In the last fiscal, the airport handled 7.77 million passengers. Addressing the 22nd AGM, Kerala Chief Minister Pinarayi Vijayan who is also the chairman of CIAL said that the new international terminal will be operational within two months and the company devised a master plan for land utilisation with the help of Ernst & Young. The construction of the 1931-metre four-lane road including two flyovers will be completed by next month. The installation capacity of the solar power plant will be doubled by February 2017. With the commissioning of the 12 MW solar power plant, CIAL became the first airport in the world fully powered by solar energy. It increased the power generation to 15.4 MW by the installation of more photovoltaic panels. The total installations so far produced 23.5 million units of power, he said. Nick Ritchie Jersey
First flight under Regional Connectivity Scheme likely in January, says Ashok Gajapathi Raju
Government expects the first flight under the regional air connectivity scheme, which is in advanced stages of finalisation, to take off in early January 2017, Civil Aviation Minister Ashok Gajapathi Raju has said. The Regional Connectivity Scheme (RCS), which seeks to provide air services between un-served and under-served areas, is part of larger plans to boost the domestic aviation sector, which is clocking over 20 per cent passenger growth. Raju, under whose stewardship the civil aviation policy was announced in June, said work is at an advanced stage with respect to RCS. “We expect the first flight under RCS to take off by the end of this year or early January 2017,” he told PTI. The civil aviation ministry has already signed memorandums of understanding (MoUs) with various states, including Gujarat, Maharashtra, Chhattisgarh and Jharkhand, for implementation of RCS. The scheme refers to operation of an air transport service between any two airports, of which at least one has been declared by the central government as un-served or under-served. There are 394 un-served and 16 under-served airports. Last week, the Airports Authority of India (AAI) said as many as 20 un-utilised airports are ready to start operations for regional flights. A slew of incentives are being proposed under RCS, including Rs 2,500 cap on airfare for one-hour flights. Airlines under RCS will be extended viability gap funding (VGF) while the states concerned are required to offer certain concessions such as providing police and fire services free of cost. VGF will be created by way of charging a small levy per departure on all domestic flights on certain routes and small aircraft below 80 seats. Central and state governments will be sharing the VGF amount. Last month, the government notified excise duty of 2 per cent for jet fuel purchased from airports that come under RCS, which is part of the new civil aviation policy. The concessional rate will be applicable for airlines as well as cargo operators. A basic excise duty at concessional rate of 2 per cent will be levied on aviation turbine fuel (ATF) drawn by operators or cargo operators from RCS airports for three years,” the Central Board of Excise and Customs (CBEC) had said in a notification. Brian Dawkins Womens Jersey
Air India’s loss stands at Rs 246 crore in first quarter, narrows from Rs 316 crore last year
Air India’s turnaround — announced by Prime Minister Narendra Modi in his Independence Day Speech — seems unlikely, as the national carrier has reported operating loss of Rs 246 crore during the first quarter of the current fiscal. The first quarter loss has narrowed from Rs 316 crore during the same period last year, it is much below the airline’s expectation of making about Rs 90 crore in operating profit during the first quarter. In contrast, all other listed airlines in the country have made net profits during the same period on the back of lower fuel prices and rising demand for travel. The revenues during the period have increased marginally by Rs 121 crore (see chart). Marginal increase in revenues was a concern raised by the Prime Minister’s Office in its first review on July 6. The unaudited results for the quarter was cleared by the airline board in its meeting held on September 14. The airline is awaiting its audited financial results for the full fiscal 2015-16, where it estimated to make operational profits of Rs 100 crore. “Revenues not picking up are surely a concern, as this is impacting the overall performance of the airline,” said a ministry official, who did not want to be identified. Analysts feel that the airline has always been in turnaround mode but cannot turnaround unless the real problems are addressed. “It is believed that Air India’s problem can be addressed by giving it money, which is not the case. The airline has systemic problems and it cannot turn around unless those problems are addressed. The airline surely has shown improvement by reducing its losses but that is not commensurate with the benefits that includes lower fuel price and growing demand,” said Jitendra Bhargava, former executive director of Air India. An email sent to the airline on the issue did not elicit any response till press time on Tuesday. Air India has a huge debt burden and that is one factor impacting any turnaround prospects, its management had told ET earlier. It shells out Rs 4,000 crore annually to service debt. In an interview to ET in July, Air India chairman Ashwani Lohani had said: “Air India today has to annually pay Rs 4,000 crore to banks to service debt. It is a huge amount of money and profitability would be much easier if you remove that. I am committed to making the airline profitable on a year-on-year basis, but some debt restructuring needs to be done.”The national carrier is renegotiating with banks to restructure Rs 10,000 crore of the Rs 45,000 crore debt. As part of the bailout package, the government is also infusing and amount of Rs 30,231 crore till 2021-22. Kevin Hogan Womens Jersey
Carbon-neutral tag for IGI Airport, first in Asia-Pacific
The Indira Gandhi International (IGI) airport on Tuesday became the first airport in Asia-Pacific to achieve the carbon neutral status. The Airports Council International (ACI) announced IGI’s achievement during the airport carbon accreditation certificate presentation ceremony in Montreal, Canada. The same body awarded IGI the world’s number one position (in 25-40 million passengers per annum category) twice in a row under the Airport Service Quality (ASQ) programme. Airport officials said that the airport carbon accreditation has upgraded Delhi airport to ‘Level 3+, Neutrality’, which is the highest level of achievement available to airports across the world. Carbon neutrality occurs when the net carbon emissions over an entire year is zero. This means the airport absorbs or offsets the same amount of emission that is generated, officials added. The chief executive officer of Delhi International Airport Limited (DIAL), I Prabhakara Rao, said, “Achievement of the accreditation for carbon neutrality is indeed recognition of a great team work. Today we have delivered on our commitment of achieving sustainable solutions for aviation climate change mitigations made at LPAA-COP 21 last year through carbon neutrality. With this achievement, we have set up a new benchmark for other airports in this region.” He said that now DIAL is focussing on energy conservation and exploring alternative solution for generating green energy. The Delhi airport further aims to increase its solar power generation capacity to 20MW by 2020, he added. The various emission saving measures implemented in DIAL have resulted in 51% reduction in specific greenhouse gas (GHG) emission (kgCO2/Pax) during the last five years. At IGI, DIAL has taken the proactive approach towards environment management and sustainability development. Terminal 3 of Delhi Airport is a LEED (Leadership in Energy and Environment Design) Gold certified green building. Other energy efficient and environment friendly infrastructures at the airport include sewage treatment plant (STP) and water treatment plant (WTP), energy efficient bridge mounted equipment (BMEs), energy efficient lighting systems, advanced fuel hydrant systems, fixed electric ground power units (FEGP) and preconditioned air (PCA) supply systems. ACI Asia-Pacific regional director Patti Chau said, “We are extremely delighted to welcome the first airport in our region with such achievement.We are proud of Delhi airport’s achievement and its commitment to sustainability which has set a good example for airports in the region.” Ondrej Pavelec Womens Jersey
Bangalore airport puts in place new ground traffic arrangements
Bangalore International Airport Ltd (BIAL) has announced new ground traffic arrangements at the Kempegowda International Airport, Bengaluru. In an effort to streamline traffic moving in and out of the airport, BIAL has implemented lateral segregation of the departure and arrival zones at the terminal by introducing two separate routes for vehicles drop-offs and pick-ups. The two routes designed to achieve this segregation of traffic will avoid traffic bottlenecks within the airport. The new routes apply to cabs and self-driven cars and have been introduced with immediate effect. Appropriate signage has been installed at various vantage points to re-direct passengers to the new routes. Additional staff have also been deployed to assist the passengers, who have been requested to adhere to the marked routes while travelling to and from the terminal. Diversions The new routes are aligned with the departure and arrival gates for ease of movement. The following instructions will help passengers traverse seamlessly at the kerb: Vehicle Drop Off Traffic Flow: The route for passenger drop-off remains unchanged. Vehicles coming from the city will take the usual left at the Main Access Road (MAR) towards the terminal building. Follow the signage to exit the airport. Vehicle Pick Up Traffic Flow: People coming to receive passengers and heading towards arrival need to continue straight instead of turning left at the Main Access Road, like they would previously. Vehicles will be required to drive past the parking lot and take a left after the traffic signal to reach arrival gates 11-13. Post pick-up, all vehicles should follow the signage to exit the airport. In the accompanying map, the route marked in red applies to vehicles dropping passengers at the terminal, and the route marked in green guides vehicles picking up arriving passengers. Orlando Cepeda Womens Jersey