Excited to ‘take off’ at Civil Aviation Ministry: Jayant Sinha
Shifted out of the Finance Ministry, Jayant Sinha on July 6 said he is excited to “take off” in his new role as the Minister of State for Civil Aviation. After taking charge of his new portfolio, he met senior colleague Ashok Gajapathi Raju and other officials at the ministry including Secretary RN Choubey. Former MoS Civil Aviation Mahesh Sharma was also present. “Excited to ‘take off’ at Civil Aviation Ministry under @Ashok_Gajapathi Ji’s guidance,” Sinha said in a tweet. A member of the Lok Sabha representing Hazaribagh in Jharkhand, Sinha studied at IIT, Delhi, University of Pennsylvania and Harvard Business School. By profession, he is a venture capital management consultant and hedge fund manager. He is also a global expert on entrepreneurship and technology, according to an official release. In another tweet, Sinha, who was earlier Minister of State for Finance, thanked Finance Minister Arun Jaitley for all his support and guidance. Clark Harris Womens Jersey
Airports Authority of India plans subsidiary to handle cargo
Air cargo handling is expected to become efficient at Airports Authority of India (AAI)-owned airports, including Chennai, as the authority plans to hive off cargo operations and set up an logistics subsidiary called Air Cargo Corporation. The move for a subsidiary has got informal approval from the AAI board. However, a few officers feel it may impact the revenue of the public sector airport operator which earns 200 crore from cargo annually. AAI appointed a consultant to study the feasibility of the proposal. It suggested that cargo operations be run separately under the AAI board. Sources said AAI higher-ups believed that a separate entity with a dedicated staff and hierarchy would help boost cargo volumes. Adam Wainwright Authentic Jersey
India sees fastest domestic air passenger growth in 2015: IATA
India witnessed the fastest domestic air passenger growth at 18.8 per cent in 2015, way ahead of neighbouring China and the United States, according to IATA. The International Air Transport Association (IATA) said airlines worldwide carried 3.6 billion passengers and 52.2 million tonnes of cargo worth $6 trillion last year. Among the world’s largest domestic aviation markets, IATA said India had the fastest domestic passenger growth in 2015. “With annual growth of 18.8 per cent (in a market of 80 million domestic passengers), India’s performance surpassed that of Russia (11.9 per cent growth, in a market of 47 million domestic passengers),” it said in a release. China witnessed 9.7 per cent growth in a market of 394 million domestic passengers while the US saw 5.4 per cent rise in a market of 708 million local fliers. Last year, carriers flew 3.6 billion passengers on scheduled services, an increase of 7.2 per cent compared to 2014. As per IATA, airlines in the Asia-Pacific region carried the largest number of passengers. In terms of regional ranking – based on total passengers carried on scheduled services by airlines registered in that region, Asia-Pacific had 34 per cent market share followed by Europe (26.2 per cent) and North America (24.8 per cent), among others. “Last year, airlines safely carried 3.6 billion passengers, the equivalent of 48 per cent of the Earth’s population and transported 52.2 million tonnes of cargo worth around $6 trillion.” “In doing so, we supported some $2.7 trillion in economic activity and 63 million jobs,” IATA’s Director General and CEO Tony Tyler said. American Airlines came on top in terms of total scheduled passengers carried, domestic as well as international. Others in the top five were Southwest Airlines, Delta Air Lines, China Southern Airlines and Ryanair in 2015. Nathan Eovaldi Jersey
FDI in aviation: How Vistara, Air Asia India, Jet are affected
The government has clarified that the notification related to foreign direct investment (FDI) in aviation doesn’t impose restriction of management control with Indians in airlines where majority stake is vested with a foreign entity. However, existing airlines like Vistara, AirAsia India, Jet-Etihad and any future carriers with majority stake held by Indian entities will have to ensure that the substantial ownership and effective control (SOEC) rests with Indian nationals. The clarification from the civil aviation ministry came after the department of industrial policy and promotion (DIPP) notified the changes in FDI policy in the sector, but maintained that no other changes in conditions had been made. This meant that despite a foreign entity holding 100% stake in an airline, it would have to ensure that SOEC rested with Indian nationals. However, speaking to FE, RN Choubey put the record straight, saying: “Foreign airlines will not control domestic airlines in case the majority is owned by domestic player.” He added that in case a foreign entity owns a majority stake in an airline, it will not be required to abide by ownership and control structure that requires it to be vested with Indian citizens. Jamie Langenbrunner Womens Jersey
UP govt may seek cancellation of MoU with centre for airports
The UP government is gearing up to move the centre for cancellation of Memorandum of Understand (MoU) it signed with the Airport Authority of India (AAI) two years ago for development of airports in Faizabad, Meerut and Moradabad, in a development that could further sour the relations between the Samajwadi Party and the Bhartiya Janta Party in an election year. The move comes a day after the union civil aviation ministry gave its nod to develop `no-frill’ airports – airport with no non-essential services — in Kanpur, Bareilly, Agra and Allahabad. Sources, however, said that the centre has expressed apprehensions for setting up an airport in Faizabad, Meerut and Moradabad after a feasibility study showed a low Investment Return Ratio (IRR). Experts insist that an airport is viable only when the IRR is 12 – meaning that return on investment is at least 12%. In case of the three airports the value was much low. A top government functionary told TOI that the UP’s civil aviation department has already served a notice to the centre asking as to “why the MoU for the three cities may not be cancelled”. Sources said that a formal decision on the issue is likely to be taken by the state cabinet soon. “If that was the case, the centre should have carried out a feasibility study before signing a MoU,” said a senior official in the Chief Minister secretariat. Ian Thomas Jersey
Civil aviation policy: Warts apart, a credible policy
The National Civil Aviation Policy 2016 aims to provide an eco-system for the harmonised growth of various aviation sub-sectors. The Policy is credible in that it is wide and addresses as many as 22 policy areas while still preserving and maintaining an integrated view of the sector in terms of the vision, mission and objectives outlined in it. Also, it is noteworthy that the policy frameworks outlined for each of the sub-sectors have consistent reference to the identified objectives in terms of establishing an integrated eco-system; enhancing ease of doing business through deregulation, simplified procedures and e-governance; ensuring safety, security and sustainability of the aviation sector, etc. Given the pendency of some of these issues and the associated debate, there had to be trade-offs. What was important was that adequate debate preceded the policy pronouncement and the trade-offs were identified up-front, analysed, and informed choices made through the stakeholder consultation process. The Ministry of Civil Aviation undertook extensive consultations, providing stakeholders the opportunity of sharing their perspectives and viewpoints. So is this a good policy document? A defining feature of a good policy is that it should be amenable to speedy and effective implementation. NCAP’s focus on making flying affordable for the masses and the release of associated implementation details for stakeholder consultation on 1st July is a good example of the policy trying to address longer-term priorities – looking beyond minor tweaks, while remaining focused on speedy implementation Ramon Humber Jersey
Aviation challenge awaits Jayant
Junior minister Jayant Sinha’s shift from finance ministry to civil aviation is being blamed on his father, Yashwant Sinha’s less-than-flattering remarks about the Modi government’s performance. But Sinha Jr is an articulate minister and has carved his place by explaining the Modi government’s objectives in a succinct manner. Ashok Gajapathi Raju – a nominee of the BJP’s key ally, the TDP – cannot be removed from civil aviation even though he has had a pretty patchy record. Last month, when the government decided to permit foreign airlines to hold a 100 per cent stake in domestic airlines, the ministry botched up when it failed to change a key requirement that mandates that Indians should remain in effective control of a domestic airline. Raju failed to address the basic contradiction that exists in the substantial ownership and effective control norms under the aviation policy and the relaxation in the FDI rules. Sinha could have been brought in to the civil aviation ministry to deal with such embarrassments. After the government relaxed the so-called 5/20 rule that permitted newbie airlines like Vistara, co-owned by the Tatas, to fly abroad even though it did not have five years of domestic flying experience, the civil aviation ministry will have to grapple with the bigger issue of farming out unused bilateral rights under agreements that India has signed with more than 80 countries round the world. The bilateral rights cover such aspects as landing rights and the number of seats that can be offered to airlines that wish to fly abroad. Demarcus Walker Jersey
Bhiwadi may get India’s first cargo airport
The ministry of civil aviation is likely to select Bhiwadi, a town in Rajasthan near New DELHI, as the spot for the country’s first cargo airport and make Jewar in Greater Noida the second passenger airport in the National Capital Region. “It would make sense to make Bhiwadi the first cargo airport in the region. We are discussing it as a possibility,” said a senior official, who did not want to be identified. “One will have to cross Delhi airport to reach Bhiwadi. So, what is the point of shifting the airport beyond the existing airport? An airport in Jewar would complement the existing airport and help decongest the existing airport,” the official added. The ministry is looking at two options to build second airport – one is Bhiwadi and the other Jewar in Greater Noida, Uttar Pradesh. While an airport at Bhiwadi had been planned as part of the Delhi-Mumbai Industrial Corridor and has received a no-objection certificate from the government, the previous Mayawati government had proposed an airport in Jewar years ago.
Odisha to invite EoI soon from international air carriers
The state government would soon invite Expression of Interest (EoI) from international air operators to run flights from the Bhubaneswar airport to South East Asian hubs such as Singapore, Thailand and Malaysia. “To begin with, we are keen to have outbound flights from Bhubaneswar to the South East Asia countries.The objective of floating the EoI is to ascertain from the international carriers on the options they can offer for running international flights to and from the Bhubaneswar airport. The options can be on fare structure and frequency and timing of the proposed flights”, said a state official. He said, a couple of carriers had evinced interest to operate international flights to and from Bhubaneswar but refused to divulge their names. Global carriers like flydubai and Air Asia had submitted schedules to run commercial operations from Bhubaneswar. While flydubai will offer connectivity from Bhubaneswar to Dubai, Air Asia will run flights between Bhubaneswar and Kuala Lumpur. Apart from flydubai and Air Asia, Air Arabia and SilkAir have also evinced interest to start commercial operations. Pierre-Edouard Bellemare Womens Jersey
UP airports to be government priority
The Union government is going all out to operationalise airports in India’s most populous state Uttar Pradesh, with the move being politically significant since state Assembly elections there are just about a year away. The Delhi-NCR (National Capital Region) may also get a second airport apart from the IGI airport in the capital, with minister of state for civil aviation Mahesh Sharma saying “the case of constructing an airport in Jewar (near Greater Noida in UP near Delhi) had been sent to the ministry of defence for their NOC (no-objection certificate)”. He also said a “major effort was underway to operationalise numerous airports in Uttar Pradesh” and that the decision was the outcome of a review meeting that was held earlier in the day that he had chaired. The meeting was attended by Union civil aviation secretary R.N. Choubey, senior officers of the state-run Airports Authority of India, the director, Civil Aviation of the Uttar Pradesh government and district magistrates of the concerned districts in Uttar Pradesh. Mr Sharma informed that “Rs 400 crore assistance will be provided by the Centre for developing the airports in Agra, Allahabad, Kanpur and Bareilly” and “this would be done within a period of one-and-a-half months”. Jersey