I would love AirAsia to own 100 per cent in Indian arm: Tony Fernandes, CEO, Air Asia Group
AirAsia Group CEO Tony Fernandes had always wanted AirAsia India to fly to foreign cities early and had argued against the norm stipulating minimum five years and 20 aircrafts for domestic airlines to fly abroad. Last year, India scrapped that scheme to allow all airlines to fly abroad provided they deploy at least 20 aircraft for domestic operations. Fernandes now says flying abroad is not a rush for him any longer because his airline can do a lot in India, and would “love to” own 100 per cent in AirAsia India, a 49:51joint venture with the Tata Group. In an interview with ET at the Paris Air Show, Fernandes says AirAsia is already the lowest-cost airline in India and that he wants to make flying affordable for an ordinary taxi driver in the country. Edited excerpts: How has been your experience in India? My story of India is that when a taxi driver picked me from Delhi airport and told me that it took him four days to reach Delhi from Madras (Chennai). I was shocked. I asked him how much he can pay to fly. And he gave me a price. We are about two-thirds of the way to make that man fly. India is a country that I do not want to screw up. There has been so much opposition to us. Some of them are of our own doing. But I am happy with the way we are going and India is not a simple country, it is a complicated one, and that is further complicated due to intense competition. You mentioned about some mistakes of your own doing. Can you elaborate? I think there’s only one, which I do not want to talk about because it is quite well documented. We have done well. We have waited for the law to change. We are clear, and have a clear path moving ahead. There was so much opposition to us and we have been involved in issues, where we were not even involved, like the issue with the Tatas. They have been great partners. They have stuck with us and we have also stuck with them. Tyler Higbee Womens Jersey
Now, Airports Authority of India revises bidding norms for Jaipur, Ahmedabad airports
The Airports Authority of India (AAI) has reworked the bidding parameters for awarding operation and maintenance works of Ahmedabad and Jaipur aerodromes to private players amid the process hanging fire for over a year. Seeking to attract more bidders, the contracts would now be awarded for 15 years instead of the 10-year time frame while the same entity could be awarded the two projects. Along with putting in place revised parameters for bidders, the AAI has again extended the deadline for submitting the bids for Operation and Maintenance (O&M) of Ahmedabad and Jaipur airports. With the deadline being extended for the sixth time in nearly one year, the process for awarding the contracts would be further delayed. Jerian Grant Womens Jersey
Gaganning for aircraft glory
The Centre is soon expected to issue the notification to make GAGAN (GPS Aided GEO Augmented Navigation), the indigenously developed navigation system, mandatory for new aircraft registered in the country from January 1, 2019. This would enable the country to break free from the over-dependence on the international tech regime led by the Global Positioning System (GPS) of the US and Global Navigation Satellite System of Russia. It will also plug the gap in covering equatorial region. Sources in the Civil Aviation Ministry confirmed that GAGAN, jointly developed by Indian Space Research Organisation (ISRO) and the Airports Authority of India, is ready for full optimisation and has obtained an international certification for approach and precision landing operations (APV1/1.5) over the subcontinent. The Director General of Civil Aviation has conducted rigorous ground tests for two years meeting the prescribed international civil aviation requirements, said ISRO Chairman AS Kiran Kumar, adding that GAGAN-compliance would very soon be made mandatory for aircraft. “Any GAGAN-enabled receiver will provide accurate positional information which can be relied upon,” he said. India is only the fourth country in the world to have the capability to provide certified satellite-based augmentation services over its Flight Information Region, thus elevating it to the group of elite nations that can provide a platform for transition to satellite-based navigation. Patrik Nemeth Jersey
Govt divided over Air India future
The civil aviation ministry will prefer to sell off Air India’s subsidiaries to partially clear the national carrier’s huge debts rather than go in for an immediate privatisation. The ministry has objected to Niti Aayog’s proposal to sell off Air India as there will be no takers given the huge debt of Rs 52,000 crore. All the options to restructure Air India’s debt for a turnaround, including the Niti’s Aayog’s suggestion on privatisation, are expected to be taken up by the cabinet this month. According to the civil aviation ministry, hiving off some of Air India’s subsidiaries such as the engineering and ground handling units could raise cash; this and the restructuring of debt could nurse the airline back to health. ×”Trying to sell something which has few takers is bad strategy… and spending money to sell something is even worse,” said top civil aviation ministry officials. At the preliminary inter-ministerial meetings, the ministry has questioned the proposal to write off debts or restructure them just to make the carrier attractive to a private buyer. If such a step is indeed taken, the government can itself run the airline as Air India has started making profits, instead of bringing in a private party. Air India had made an operating profit of Rs 105 crore in the last fiscal. “We are saying that if the cost of privatisation is the government having to write off debt, then is it worth it?” officials said. Till now, the finance ministry has staved off any loan write-off plans, while the lenders are not too keen to restructure without seeing some money on the table. Officials consequently feel selling off subsidiaries could be a better way to earncash that could be brought to the table while negotiating a debt recast with lenders. Some of Air India’s subsidiaries are ground handling arm Air India Air Transport Services, Hotel Corporation of India (which owns Centaur at Delhi and Lake View in Srinagar), the charter business as well as engineering arm Air India Engineering Services. Officials feel the sale of the subsidiaries or even the sale of strategic stakes in them could fetch between Rs 20,000 crore and Rs 25,000 crore. Derrius Guice Authentic Jersey
Mumbai airport unlikely to be part of next bidding under UDAN
The Mumbai airport is unlikely to participate in the second round of bidding for air routes for the government’s regional connectivity scheme or UDAN because of capacity-crunch at the busy aerodrome. The Chhatrapati Shivaji International Airport handled 837 flights a day, or one in 65 seconds, on an average in fiscal 2016-17, becoming the world’s busiest airport with single-runway operations. According to sources, while the airport has a capacity of 45 flights per hour, it often sees an aircraft movement rate of 54. Under the regional connectivity scheme, also known as UDAN, routes are bid out to airline operators based on certain criteria, including that related to tariff and requirement of subsidy from the government. After stakeholder consultations, the routes and airports that would be made available for bidding are decided. Participating airports are required to provide certain incentives to the carrier concerned. The UDAN scheme aims to connect unserved and under-served airports as well as make flying affordable by offering fares capped at Rs. 2,500 per hour on select routes. “Mumbai, Juhu and Safdarjung airport in Delhi are unlikely to be part of second phase of the regional connectivity scheme (RCS),” said a senior official at the Ministry of Civil Aviation. Because of slot constraints, the GVK-AAI run airport was able to accede to only six out of the total 20 requested by the government for the first round of bidding in March. Of the total 128 routes awarded in the first round of bidding, seven routes were from Mumbai and they were granted to three carriers — SpiceJet, Air Deccan and True Jet. Low-cost carrier SpiceJet will be launching daily direct flights to Porbandar and Kandla from Mumbai from July 10. Ahkello Witherspoon Womens Jersey
Naidu: Orvakal airport will accelerate growth
Chief Minister Nara Chandrababu Naidu has said the greenfield airport being constructed at Orvakal will help weed out faction feuds in Kurnool district. With the construction of the airport, many industries will come up in the district thus helping business in this area and generating more employment. The Chief Minister, who laid the foundation stone for the airport on Wednesday, said that it will be constructed in 2,000 acres at a cost of Rs 120 crore. He said as of now businessmen of Kurnool have to go either to Hyderabad or to Bengaluru airports by travelling hundreds of kilometres for not having the airport facility in Kurnool. He said the Orvakal airport would be constructed with international standards and would be completed just in a year. Naidu also laid the foundation stone for a food processing unit at Tangadancha village in Jupadubungla mandal. The food processing unit is being established by the Jain Irrigation System at a cost of Rs 400 crore. He also inaugurated a school building constructed at a cost of Rs 7 crore funds of the Self Help Groups. CPM district secretary K Prabhakar Reddy said the construction of the airport is to benefit the realtors only. Hector Rondon Womens Jersey
Qatar Airways considers India, Italy plans
Qatar Airways is in talks with Bombardier concerning the possible use of CSeries jets for the Qatari carrier’s proposed Indian venture, CEO Akbar al Baker has said. “Instead of ATRs [from Avions de Transport Régional] or Q400s [from Bombardier], I could use the CSeries on short-runway destinations in India,” he told Reuters during the 2017 Paris Airshow. In March this year, al Baker revealed plans to take advantage of India’s proposed relaxation of laws governing foreign investment in local carriers. Under the plan, though foreign carriers may not own more than 49% of an Indian airline, sovereign wealth funds are and have been permitted to own up to 51% of Indian scheduled passenger airlines. As such, al Baker said the proposed venture would use the Qatar Investment Authority, Qatar’s sovereign wealth fund and Qatar Airways’ parent, as a likely vehicle to establish the carrier. The future of the project, as well as the proposed finalization of Qatar Airways’ acquisition of a 49% stake in Italy’s Meridiana fly, will have an impact on what the carrier does with its LOI with Boeing (BOE, Chicago O’Hare) for sixty B737 MAX 8s. Markus Golden Womens Jersey
SpiceJet orders 40 Boeing 737 MAX 10s
SpiceJet is to acquire 40 Boeing 737 MAX 10 aircraft at a deal valued at a current list price of $4.74 billion. The actual amount that SpiceJet will pay will be much lower as aircraft manufacturers are known to give heavy discounts for bulk sales. SpiceJet will take delivery of its first 737 MAX in 2018. The deal, which was inked on the opening day of the Paris air show, saw SpiceJet ordering 20 new Boeing 737 MAX 10 aircraft and exercising the option of converting an order of 20 Boeing 737 MAX 8 aircraft to Boeing 737 MAX 10 aircraft. In January, at the time of signing a deal for 205 Boeing aircraft, SpiceJet had retained the flexibility of converting some of the aircraft ordered to different versions which it exercised on Monday when it decided to purchase 20 Boeing 737 MAX 10 instead of the Boeing 737 MAX 8 aircraft. The Boeing 737 MAX 10 was launched at the Paris air show and SpiceJet is among the first few airlines globally to order the new aircraft. “With the introduction of our 737 MAXs next year, we will be able to further expand our network, while keeping our costs low for our customers,” Ajay Singh, Chairman and Managing Director, Spicejet said. The Boeing 737 MAX 10 is the largest member of the 737 MAX family which is capable of flying 370.4 km further than today’s Next Generation Boeing 737. It can carry 188 passengers in business and economy class seating and up to 230 passengers in a single class configuration. The latest order will see SpiceJet’s firm order of Boeing aircraft reach 225. Derrick Pouliot Womens Jersey
Airports in private sector at Amaravati, Vizag: Naidu
Airports better than the one in Hyderabad would come up at Amaravati and Visakhapatnam in the private sector, Chief Minister N. Chandrababu Naidu announced at Orvakal on Wednesday. The State government was according priority to logistics and augmentation of passengers and good transport, expansion of roads, railway network and ports in the State, Mr. Naidu said at a meeting after laying the foundation stone for a greenfield no-frills airport at Orvakal in Kurnool district. The airport, coming up on 1,010 acres at a cost of ?90 crore, would be completed in a year, he asserted. The Central government launched the UDAN regional connectivity scheme to make air travel affordable to the common man, Mr. Naidu said. His government revived the Kadapa airport and developed international airports at Tirupati and Visakhapatnam. Chipper Jones Authentic Jersey
India’s GMR, four others other bid for Belgrade airport
Four consortia and one company will proceed the next round of bidding for a 25-year concession to operate Belgrade’s Nikola Tesla airport, the biggest in the Balkan region, the company and a Serbian government commission said on Wednesday. Serbia, which has an 83.1 percent stake in the airport, expects the deal to be worth around 400 million euros ($446 million). The only company to have a non-binding bid accepted was France’s Vinci Airports, according to a statement posted on Belgrade airport’s website. The consortia are France’s Meridiam Eastern Europe Investments, Zurich Airport AG and France’s Eiffage; India’s GMR Infrastructure Limited and Greece’s Terna; South Korea’s Incheon International Airport Corp., Turkey’s Yatirimlar ve isletme and Russia’s VTB Capital Infrastructure; China’s Hainan Air Travel Service, HNA and China National Aero Technology, the statement said. The government repeatedly extended an initial March deadline to give bidders more time to complete their offers. Josh Sweat Authentic Jersey