TAL Manufacturing inaugurates Rs 100 crore aerospace facility
Tata Motors arm TAL Manufacturing Solutions has inaugurated a Rs 100 crore assembly shop at its Nagpur-based facility for aerospace business. With a manufacturing area of 96,000 sq ft and investment of over Rs 100 crore, the facility has equipment to support technologies such as fluid cell forming, extrusion stretch wrapping, and high speed machining of intricate parts along with facilities for assembly. “We have set up this new generic facility to build some of the most demanding structures of an aircraft with the help of globally benchmarked manufacturing technology. This facility will help us in delivering global quality and cost effective aerospace components & assemblies,” TAL ED and CEO Rajesh Khatri said in a statement. The facility has been built to primarily execute the supply emanating from the RUAG – TAL contract and is equipped to manufacture, assemble and supply over 50,000 precision parts and assemblies every month. RUAG Aero-structures, a global tier-1 supplier to Airbus, awarded a multi-year USD 150 million contract to TAL in 2014 for supply of precision machined and sheet metal parts for the Airbus A320 family of aircrafts. “We treat the inauguration of this new facility as the first step in our realization of making TAL a part of our strategic supply base,” RUAG Aero-structures Vice President Supply Chain and Logistics Alfons Kaspar said. “Our challenge is to help TAL ramp-up quickly and stabilize production, so that we can look beyond parts and sub-assemblies into larger and complex assemblies,” he added. The company is looking at exploiting the potential and capabilities that TAL has built up in composites, which will complement RUAG’s offerings and give an unbeatable value proposition across metallic and composite aero structures, Kaspar said. Laken Tomlinson Authentic Jersey
Zero tolerance for height norm violations near airports: Bombay High Court
The Bombay High Court today said zero tolerance will be adopted for any kind of construction that comes up in violation of height regulations near both domestic and international airports in the city. A division bench headed by Justice V M Kanade made the observation while hearing an application filed by the developer of a residential building near the international airport. In the application, the developer has sought a stay on an order passed by the HC directing the Brihanmumbai Municipal Corporation (BMC) to demolish the top three floors of the building built in violation of height regulation norms. The HC, on August 10, asked the civic body to demolish three floors of the building, developed by SAILEE Developers Pvt Ltd, as it is very close to the runway and overshoots the permissible height limit. The DGCA allowed construction up to 13.9 metres, but the building is 24.7 metres high. The developers today filed an application seeking a stay on the demolition order and argued they were not aware if the height was to be calculated from the main sea level or the runway level. The HC, however, refused to accept the argument and said the developers have earlier also misrepresented facts before the authorities and constructed buildings. David West Womens Jersey
Bengaluru violence: AirAsia allows passengers to reschedule travel free of cost
Low-cost carrier AirAsia today said passengers of their flights departing from Kempegowda International Airport here on September 13 can reschedule their travel at no charge due to logistical difficulties that they may face in getting to the airport following the outbreak of violence over the Cauvery issue. “AirAsia understands the seriousness of the current situation in Bengaluru. All AirAsia guests booked onto flights departing from Bengaluru on Tuesday, 13th September 2016 can reschedule their travel at no charge,” the aircraft carrier said in a statement here. “The airline understands the logistical difficulty that some guests might face in getting to the airport for their flight,” AirAsia added. The carrier has made arrangements for rescheduling the passengers travel to any time up to 72 hours at no charge, AirAsia said. “Any guest travelling from Bengaluru on Tuesday, 13th September, 2016, can contact our airline staff or call centres to reschedule their travel to anytime up to 72 hours from now at no charge,” it said. “AirAsia as a group believes in providing the best of safety, security and comfort to our guests and crew at all times,” AirAsia said. Jermon Bushrod Jersey
Air India looks to recast loans worth Rs 28000 crore
Saddled with a debt of almost Rs 50,000 crore, Air India is trying to restructure the Rs 28,000 crore working capital portion of this burden. The airline’s top brass had an informal meeting with State Bank of India management last week in Mumbai where the Maharaja requested that SBI Caps be asked to examine the possibility of converting a part of the working capital debt into equity . A consortium of 19 banks have extended Rs 28,000 crore as working capital loan to the state-owned airline. Of this, Rs 22,000 crore is aircraft purchase related loan, which has been partially raised with guarantee from EXIM Bank from foreign institutions, and rest via NCDs (non-convertible debentures) and bonds. “For the working capital loan, Bank of India and Bank of Baroda have the biggest exposure individually of about Rs 2,000-2,200 crore each. SBI has an exposure of about Rs1,200 crore,” said a senior official. SBI leads this consortium of bankers for taking decisions on AI loans. While no bank has far reacted positively to the idea of converting part of loan into equity -or taking a haircut -the airline management has made it clear that corporate debt restructuring (CDR) is a must for the airline to survive. “Every year, Rs 4,000 crore goes towards debt servicing alone…” AI chairman Ashwani Lohani had told TOI. “Of the Rs 28,000 crore working capital loan, Rs 7,000 crore is NCD. So the issue is of Rs 21,000 crore.Banks will see what part of this amount is sustainable loan -meaning that can be serviced with the cash flows of the company -and what part is un-serviceable (which AI may not be able to service). The non-sustainable portion is about Rs 10,000 crore (which AI wants to be converted into equity),” said the official. AI has long been trying lenders to cut the interest rate on loans of Rs 10,500 crore, on which it is paying 10.1%.The airline had earlier this year pointed out that there were three options for restructuring the loans. One was to get banks to convert a part of loans into equity . The second was to swap the “high-cost debt” with nonconvertible debentures, which AI executives said, would cost 7-8%, resulting in an annual savings of around Rs 200 crore. In the third model, banks could be issued preferential capital with a fixed rate of dividend payable.This way , AI feels, there will be no dilution of equity . Martin Perez Authentic Jersey
SpiceJet to buy more aircraft, ‘not thinking of stake sale’
SpiceJet reported a stellar set of Q1 numbers with revenues growing 37 per cent to ?1,521.53 crore and profits more than doubled to ?149 crore. Speaking to BTVi, SpiceJet Chairman Ajay Singh said the airline has grown its profits despite keeping fares steady in a challenging environment. It is also in advance stage to acquire more aircraft as it expects the aviation sector to grow 25 per cent. SpiceJet reported a fantastic set of Q1 numbers. What has led to the growth and how are things looking like at this point? We do not like to give guidance on quarters but in a challenging environment we think that we are growing responsibly and profitably. As you have seen that in this quarter, SpiceJet grew 37 per cent, which was the fastest by any of the major carriers in the country. Our capacity and revenues increased by 37 per cent. Our profits have more than doubled — they have gone up by 104 per cent. So, I think, we will grow profitably and that growth should not come at the expense of revenues or profits. Despite high aviation turbine fuel prices, your margins have continued to increase as well. Can you take us through the mathematics there? Well, firstly if you have noticed the unit revenue as well as the unit fares dropped marginally by about 2 per cent or so. The load factor has gone up by about 2.5 per cent. So, that has neutralised the impact on revenue and revenues have grown at the same level as capacity growth. In addition, we have been able to keep fares pretty much where they were despite a challenging environment. Ancillary revenue has grown by 64 per cent. So, all these factors have contributed to the margins that you see. Can you also tell us a little bit more on plans in regards to fleet addition? We will continue to explore opportunities of growth in the short-, medium- and long-term. We feel that there are certain opportunities and certain markets that we would like to enter and as a consequence, there will be a growth in our capacity in the winter quarter. We are also looking at placing orders for aircraft and that is at a very fairly advanced stage at this time. And we hope to complete that process over the next few weeks. Are there any requirements for funding or are you well placed there? Well, profits have been strong. We expect that the profits will remain strong for the year the cash position is also very strong. We don’t believe at this level of performance, we need to get any external financing or dilute our equity. We also feel that this is not an appropriate valuation for SpiceJet stocks. We will take calls as we progress down this journey. But at this time SpiceJet is in a very strong position in terms of the financial ability to place orders and move forward. Keenan Allen Jersey
Surging railway fares could increase traffic at airlines
The decision by Indian Railways to allow surge pricing in Rajdhani, Shatabdi and Duronto trains will further expedite the shift of rail passengers towards airlines — giving an impetus to the country’s growing aviation sector. Today onwards, railways has introduced the concept of surge pricing on base fares of Shatabdi, Rajdhani and Duronto trains. According to the Railway Board formula, the base fares will increase by 10 per cent with every 10 per cent of train berths sold. The maximum fare has been capped at 1.5 times of the base fare, which means half of the berths would be sold at that rate. Even as railways increased fares, state-run carrier Air India has announced that it will not increase its last minute fares, or tickets booked four hours before the take-off, that are being sold at par with AC II Rajdhani train fares. “Even as railways increased fares, our last minute fares will remain the same as earlier,” said a senior Air India official, who did not want to be identified. Hence, if you were to buy an Air India ticket from Delhi to Bangalore four hours before departure, it would cost you Rs 1,530 less than the second AC railway ticket. Above all, you get a confirmed plane ticket, instead of a waitlisted Rajdhani ticket. You can get an Air India ticket for Rs 4,095, whereas the second AC would cost you Rs 5,626. Other airlines are also providing tickets at almost same prices as Air India. (See chart) A comparison between Shatabdi train fares and air fares cannot be made because Shatabdi connects sectors that are short haul. Duranto fares are more or less similar to Rajdhani fares. Analysts say that the shift has already started with the difference between AC fares and air fares reducing to up to Rs 800 and this increase in difference will only expedite it. “This is good news for aviation industry in India that is seeing an over 20 per cent growth in passenger numbers that is highest in the world. Looking at the capacity expansion the airlines have and the level at which oil (price) is, air fares are going to get lower further in the future,” said Sharat Dhall, president at Yatra.com, an online travel portal. Other travel industry analysts feel that the railways plan to introduce surge pricing is a step in the right direction. “Globally, surge pricing in train fares is an acceptable thing and Indian Railways doing it is a step in the right direction. As far as the shift is concerned, it’s already happening and may happen more,” said Aloke Bajpai, cofounder and CEO of iXiGO, an online travel portal. Bajpai added the shift towards surge pricing may not impact Indian Railways in terms of passenger carriage. “Surge pricing is only in premier class, which is a small percentage of railways’ total capacity and passengers carried. So, the impact will not be much,” he said. Bajpai’s views were echoed by a Railway Board member. “Not more than 10 per cent of traffic would go to airlines. We already have waiting list of 300-400 for Rajdhani trains. I don’t think railways would lose passengers. Today, airlines are offering low prices because the fuel prices are low and demand is lean. They will also increase prices once demand goes up and then people will find railways cheaper. We are follo-wing the same model. We couldn’t have reduced base fares because we have no lean season and base fares are already so low,” he said. He said that railways has already tried surge pricing of up to 3.9 times the base fare of Rajdhani trains for its special Suvidha trains, run during the festive season. “For a second class Rajdhani type segment, people are already paying Rs 5,000 during Diwali and Holi. We have introduced surge pricing keeping all factors in mind. It’s an experiment for us,” he added. Brandon Marshall Jersey
Chhattisgarh inks MoU with Aviation Ministry to boost air link
Chhattisgarh Government today inked a memorandum of understanding (MoU) with the Ministry of Civil Aviation to boost regional air connectivity within the state. The MoU was signed at a function this evening at the secretariat in the presence of Union Civil Aviation Minister Ashok Gajapathi Raju and Chhattisgarh Chief Minister Raman Singh, a public relations officer said. As per the agreement made under the Centre’s Regional Connectivity Scheme (RCS), small airports and airstrips will be developed in phased manner in different cities to facilitate intra-state flight services, he said. This scheme will cover those cities where flight services have been either discontinued for a long time or could not be started, he said. In the first phase, Jagdalpur, Ambikapur, Raigarh and Bilaspur (all district headquarters) will get connected to state capital Raipur through air services, the officer added. Besides, the Centre will provide an opportunity to various aviation companies to start flights on subsidised rates within the state, he said. Earlier, Raju visited Jagdalpur, headquarters of the insurgency-hit Bastar district, and inspected an airstrip. At the function, the state government also discussed the prospects of starting flights from Raipur to Hyderabad and Visakhapatnam via Bastar, and Raipur to Varanasi through Ambikapur with the Aviation Ministry officials, he said. Brandon Mebane Womens Jersey
Global airport traffic up 6.4% in 2015, fastest rate since 2010
Global airport traffic grew at its fastest rate last year since 2010, rising 6.4 percent to 7.2 billion passengers, according to data published on Friday by an international trade association representing airports. But passenger growth this year could be tempered by the threat of militant attacks, geopolitical unrest and potential bottlenecks for passengers lining up to clear security checks, said the report by Montreal-headquartered Airports Council International, or ACI. “It is important to maintain cautious optimism as we navigate through 2016,” ACI World Director General Angela Gittens said in a news release. “There are several impediments that could curtail the continued rise in demand, which could potentially encumber growth prospects over the short and medium terms.” While the highest number of passengers, 2.46 billion, went through the Asia-Pacific region in 2015, up 8.6 percent from a year earlier, Atlanta’s Hartsfield-Jackson remained the world’s busiest airport, the report said. Passenger traffic in emerging markets and developing economies soared 8.1 percent in 2015, compared with a 5.2 percent rise in slower-growing mature markets, said ACI, which collects data for over 2,300 airports in 160 countries. Passenger traffic generated by Brazil, Russia, India, China and South Africa grew 8.2 percent on an annual basis. Globally, there were 37 large airports with over 40 million passengers, more than double the number in 2005. “This level of growth is unprecedented, particularly since a majority of the airports in this category are from the typical mature markets of North America and Europe,” the release said. It said North America experienced a resurgence in air transport demand, especially at many of its large hubs, following years of consolidation and capacity discipline by U.S. airlines. Large airports are benefiting from capacity shifts where flights are being directed through major connecting hubs. But the trend toward hubs comes at the expense of smaller regional airports, which are losing out on traffic, Gittens noted. Air cargo grew more weakly than passenger traffic, rising 2.6 percent in total volume during 2015, partly because of subdued growth in emerging markets and developing economies. Colton Sceviour Authentic Jersey
Government looking at 6-year plan to upgrade airport infrastructure: Jayant Sinha
Minister of State for Civil Aviation Jayant Sinha has told ET that the government is looking at a six-year plan to upgrade airport infrastructure, given that India’s metro airports are bursting at their seams, and are struggling to cope with the crush of passengers and choked runways. The upgrade is almost imperative as Indian airports are expected to cater to a billion footfalls over a decade from now, and airlines have announced mega aircraft induction plans that stretch up to a decade, the minister said. “Looking at the passenger growth, we expect the size of the Indian aviation market to grow to about 600 million air passengers annually over 10 to 12 years from now.This would mean a billion footfalls at our airports. We are working with a strategy spread over a period of up to six years to ensure that capacity does not become an impediment to the growth in aviation in India,” Sinha told ET on Friday. Sinha further explained that the government is going to work on increasing airport efficiency during the first two years. “This would include looking at Juhu as an alternative and shift out general aviation traffic from the current airport in Mumbai. Between the second and fourth year, we will be carrying out upgrades at airports like Delhi, airports in the northeast and others. Even as we do this, we will keep awarding new airport projects, which will be available post the fourth year onwards. We have already awarded Goa, and Navi Mumbai airport is likely to awarded soon,” said Sinha. The ministry’s plan has come as a respite for airlines in India, which have plans to induct over 500 aircraft in their fleet through a 10-year period, and have started complaining about saturating airport capacity across the country. While Mumbai airport is unable to add any new domestic flight due to lack of free slots, Delhi has not been able to add new flights during peak hours. Airports Authority of India (AAI), the state-run airport operator, is also constrained forcing it to hire consultants to improve efficiency at their airports. Airlines, however, expressed fears that saturating airport capacity may impact their plans. “It seems we are again back to 2009, when airports capacities were saturating and there were no slots or space for new flights. New private airports came up and state-owned AAI also improved its infrastructure and things improved and airlines grew. Expansion plans might get impacted if airport infrastructure does not catch up with growth,” said a senior airline executive, who did not want to be identified. Michael Strahan Jersey
SpiceJet Q1 profit doubles to ₹149 cr
No-frills airline SpiceJet reported a net profit of ?149 crore for the first quarter of 2017 against a profit of ?73 crore for the same period of the previous year. This is the sixth consecutive profitable quarter for the Gurgaon-headquartered low-cost airline. In a statement the airline said that on an EBITDA basis SpiceJet reported a profit of Rs. ?215 crore. During the latest quarter, capacity deployed by SpiceJet registered a growth of 37 per cent over the same quarter last year and operating revenue stood at ?1,522 crore (?1,113 crore previously). The average fare charged by the airline stood at ?3,605 during the first quarter of this year compared to ?3,715 during the same quarter in the previous year. Ancillary revenues During the latest quarter, the airline reported a 64 per cent increase in revenues from ancillary revenues compared to the same period in the previous year. Airlines in India earn ancillary revenues from unbundling services such as charging for sitting in the first few and some other seats which offer additional leg room space, by charging for meals/drinks ( they have to offer water free of charge), charging for checked in bags, sports equipment and musical instruments among others. Profits for the quarter were adversely impacted by Rupee depreciation, inflation and the presence of expensive wet lease aircraft, the airline said in the statement. Rupee depreciation Ajay Singh, Chairman and Managing Director, told newspersons after the results were announced that during the latest quarter the airline suffered a loss of ?33 crore due to the depreciation of the rupee, while it is likely to save substantial funds as the airline has now converted the wet lease of aircraft into dry lease. A wet lease involves leasing an aircraft with a foreign crew, while in a dry lease, the airline leasing the aircraft gets it without the crew. Typically, the leasing rates for an aircraft being taken on dry lease are 20 per cent lower than what an airline pays for inducting an aircraft on wet lease. “Currently, the company has zero bank debt. We have cleared all tax liabilities. All airport liabilities have been cleared. We have paid all the banks and do not have a rupee outstanding with them. There is no outstanding with vendors,” Singh said. SpiceJet plans to induct three Boeing 737 during October and November this year. The airline also plans to station another three Bombardier Q 400 aircraft in Kolkata to strengthen operations to the North-East. On Wednesday, the airline stock closed at ?65.30, up 8.95 per cent from the previous day’s closing, on the BSE. Al Davis Womens Jersey