Policy Not Enough, Regional Carriers Seek Active Support
The draft policy outline issued for feedback and suggestion on the much-hyped Regional Connectivity Scheme (RCS) by the civil aviation ministry promises lucrative airfares linked to distance travelled. But regional airlines and business aircraft operators want concrete measures in order to make RCS a success. Last week, when a delegation of the Business Aircraft Operators Association (BAOA) met the civil aviation ministry officials, they sought interest subsidy on loans or a cap on interest rates, easier access to funds for small airline firms, ability and flexibility in mortgaging of smaller aircrafts to take loans among others. Then older demands of allowing carriers to have their own ground handling service and lower parking charges at bigger airports were reiterated. The delegation wants the central government to bring down the interest rates for loans to small aircrafts in line with international practice. The draft RCS says the Passenger Service Fee (PSF), Development Fee (DF) and User Development Fee (UDF) will not be imposed on the air tickets. This means the airfare under the scheme will purely be distance based. As proposed, a flight up to 225 kms could be capped at less than Rs 2,000 (Rs 1,770) or under Rs 8 per kilometre. And a flight up to 800 km would cost Rs 4,070 or Rs 5 per kilometre, the draft says. While the slabs for fixed wing aircraft are measured in kilometres, for chopper services it is measured on time. Therefore, for the helicopter service under regional connectivity scheme, the first 30 minutes are proposed to be capped at Rs 2,500. For a chopper service between 31 minutes to 35 minutes, the cap will rise by Rs 400 to touch Rs 2,900. And for a chopper ride of 56-60 minutes, the cap will be Rs 5,000. The draft proposal has sought comments for finalizing these airfares from the stakeholders. C.J. Anderson Authentic Jersey
100% FDI in aviation: Future domestic airline completely foreign owned? ICAO clears fog
The International Civil Aviation Organization, a United Nations body that sets guidelines and standards for the sector, has allayed concerns that a foreign-owned airline operating from India may have legal and procedural issues in obtaining seats under bilateral rights for flying abroad. The air service agreements (ASAs) signed between any two countries usually mandate that airlines from either country have their substantial ownership and effective control (SOEC) vested with citizens of the particular country. These ASAs are based on International Civil Aviation Organization (ICAO) template and even though they are not binding, most countries include it in their bilateral rights agreements. “It is up to the concerned states to negotiate and agree on what criteria or requirements they would apply for the designation and authorisation of their airlines to operate the agreed air services. Even for those air service agreements which contain a ‘nationality clause’, states have the discretionary right to decide if they would apply or waive it on a case-by-case basis,” ICAO told FE in an e-mailed response. DeVante Parker Authentic Jersey
India will need aircraft worth USD 265 bn in 20 years: Boeing
Boeing Corporation today sounded bullish about the Indian aviation sector, the fastest-growing market in the world in terms of passenger traffic, saying the country will need as many as 1,850 new airplanes worth USD 265 billion over the next 20 years. The Seattle-based aircraft maker had last year predicted a demand for 1,740 new airplanes valued at USD 240 billion over the next 20 years. This rising demand will be driven by single-aisle planes such as the 737 Max and Next-Generation 737s from Boeing and A320 Neos from its arch rival Airbus, according to Dinesh Keskar, Senior Vice-President for Asia Pacific and India, Boeing Commercial Airplanes. He was talking to reporters here while releasing Boeing’s ‘Current market outlook for India’ report. Julius Peppers Jersey
Air India, SpiceJet, Jet Airways top in reputation rankings
Despite all the ills it is facing on the on-time performance and staff discipline, the national carrier Air India tops when it comes to brand reputation, followed by low-cost carrier SpiceJet and Jet Airways. Among the international carriers, it is Singapore Airlines that leads the ranking, followed by Etihad and Emirates, says TRA (Trust Research Advisory) Research-BlueBytes in the ‘Most reputed aviation brands 2016’ report. Others in the list include Indigo, and GoAir, while other international airlines include Lufthansa, British Airways and Qatar Airways. The ranking is based on a brand’s reputation with a two-pronged approach of media analysis and a survey of consumer influencers and was conducted among the 21 airline brands that have measurable media coverage and 2,500 consumers. Wily Peralta Authentic Jersey
Aviation Ministry announces levy of taxes on large airlines
As per the National Civil Aviation Policy, 2016, to ensure uniformity and level playing field across various airport operators, future tariffs at all airports will be calculated on a ‘hybrid till’ basis, unless otherwise specified for any project being bid out in future. It is also provided that 30% of non-aeronautical revenue will be used to cross-subsidise aeronautical charges. In order to operationalize Regional Connectivity Scheme (RCS), the National Civil Aviation Policy, 2016 provides that a Regional Community Fund will be created through levy per departure on all domestic routes, other than CatII/IIA routes, RCS routes and small aircraft below 80 seats irrespective of routes. Selection of cities under RCS is to be ‘demand driven’, depending on firm demand from airline operators and where State Government agrees to provide various concession envisaged in the Policy. Jordan Evans Jersey
Aviation Ministry seeks Rs 4,650 crore to revive 50 airports
Ministry of Civil Aviation has sought a budgetary provision of Rs 4,650 crore to revive 50 un-served and under-served airports and airstrips as it looks to boost regional air connectivity in the country. The expenses related to 32 Airports Authority of India (AAI) owned aerodromes, where there were no aircraft movements, stood at nearly Rs 15 crore last financial year, according to Minister of State for Civil Aviation Jayant Sinha. Under the new civil aviation policy, the ministry has put in place provision for promoting regional connectivity by way of reviving unserved and under-served airports and airstrips. “In order to implement the scheme, a proposal has been submitted to the Ministry of Finance for making a budgetary provision of Rs 4,650 crore (approximately) to revive a total of 50 such airports/airstrips,” Sinha said in a written reply to the Rajya Sabha. “The scheme is to be implemented over a period of three years.” As part of the Regional Connectivity Scheme (RCS), the government plans to provide viability gap funding which would be financed through the Regional Connectivity Fund. Doug Baldwin Womens Jersey
Vistara mulls regional Tier II, III India operations
istara Chief Strategy and Commercial Officer, Sanjiv Kapoor, says the carrier is considering branching into the regional commuter carrier business using 70-seater aircraft. Speaking to DNA India, Kapoor said the subsidiary, tentatively named Vistara Express, would focus on feeding traffic from smaller Tier II and III towns into larger metropolitan hubs such as Mumbai Int’l, Bangalore Int’l, Delhi Int’l, and Srinagar. No firms plans have yet been devised and the project is still only a concept, he added. Trent Williams Jersey
Book LTC tickets on lowest fare or face action: Govt to staff
Employees who fail to buy air tickets at the lowest price available on the day while undertaking journey on Leave Travel Concession (LTC) claim will face severe penal action, as per the draft guidelines finalised by the Centre. The move comes after the government noticed instances where some of its employees colluded with private travel agents to submit LTC claims showing inflated airfare to clandestinely obtain undue benefits like free boarding, lodging, transport or cash refunds. The Central Bureau of Investigation (CBI) is also looking into cases of alleged irregularities in availing the LTC claims. The ministries concerned will also carry out random checks with airlines to ensure that the tickets were booked at the lowest fare available on the date of purchase. “It has now been decided that in accordance with the canons of financial propriety, government servants should purchase tickets at the lowest rate available at the time of booking for the date and time of scheduled journey. “Government servant will be required to submit print-out of tickets showing date and time of booking in addition to the fare charged,” the new guidelines drafted by the Department of Personnel and Training (DoPT) said. Any violation of the existing norms by authorised travel agents — M/s Balmer Lawrie & Company, M/s Ashok Travels & Tours and IRCTC — will invite blacklisting. A government employee gets reimbursement of tickets for to-and-fro journey, in addition to leaves, when he avails LTC.
Aranmula airport: KGS submits new application seeking environmental sanction
Aranmula Project promoters KGS Group has given a new application to Union environmental ministry, seeking environmental sanction to build airport at Aranmula in Pathanamthitta district. The ministry will consider the application on July 29. The stand taken by the State government then will be decisive. Former UDF government had taken a favourable stand towards Aranmula project. In May last year, the Central government had cancelled the permission for the project. The Supreme Court had upheld the National Green Tribunal order cancelling the nod given the Union ministry on November 18, 2013. The Supreme Court cancelled the order after making the observation that the agency Enviro care that had taken up the environmental impact study in Aranmula didn’t have the credentials to conduct the study. Maurice Richard Womens Jersey
Air India looks to fly into profit by 2019-20; wants govt to clear Rs 10,500 crore NCDs
Air India has approached the government asking it to guarantee non-convertible debentures (NCD) worth `10,500 crore that it wants to issue against long-terms debt on its books. Converting loans into NCDs would bring down the interest rate by about 2%, senior executives at the airline explained. The country’s national carrier also plans to use the proceeds from a sale and lease back of wide-bodied aircraft to retire Rs ,500 crore or about a fifth of its short-term debt. As a consequence of some of these measures, the airline is expected to turn cash positive by 2017-18 rather than by 2019-20 as was envisaged earlier. Moreover, it is expected to report net profits by 2019 -20 ahead of the time frame of 2021-22 built into the original TurnAround Plan (TAP). A new TAP says Air India will induct 100 aircraft by including narrow-bodied planes from Airbus, Boeing 787, 777 and ATR aircraft by FY 20-21 indicating towards a significant increase in capacity in the next four years. Going by the current performance the airline is expected to repay all the aircraft related loans by 2021. At the end of March 2016, Air India’s total borrowings stood at Rs 50,000 crore of which Rs 30,000 crore are working capital loans. The remaining Rs 20,000 crore was borrowed to buy aircraft. The sale and lease back arrangements for nine Boeing 787 aircraft are expected to fetch the airline an estimated 900 million dollars, senior executives told FE. The executives added the repayment of short -term loans and some bridge bridge loans should happen in the current year. Jung-ho Kang Womens Jersey