Government a step closer to making Rs 2,500 flight for aam aadmi a reality
The government wants at least three subsidised flights a week at underserved airports as part of its efforts to enable 350 million more Indians to fly every year. “The airline providing regional flights will have to connect underserved airports with minimum three flights a week and maximum seven flights a week. Anything beyond that will not fetch any subsidy,” said aviation secretary RN Choubey. Not all seats in the flight will be subsidised, though. “Smaller aircraft with 13 seats will have nine seats under subsidy and 80 seater aircraft will have 40 seats under subsidy,” said Choubey. The airline operating regional flights will be allowed to sell the rest of the seats at market price. “We will not regulate fares on the seats without subsidy,” said Choubey. The government plans to immediately connect about 30 airports in the country that have adequate infrastructure but no flights at present. Under the scheme, the government will provide fares at Rs 2,500 per 500 km and fund the rest through a subsidy. Viktor Arvidsson Jersey
‘Hybrid Till may increase User Development Fee, hurt flyers’
The Centre’s decision to bring all airports under Hybrid Till model, under the new civil aviation policy announced last week, could make air travel expensive with a likely rise in User Development Fee (UDF), which in turn could drive up air fares. Under Hybrid Till, total earnings by airport operators are computed by adding a part of non-aeronautical revenue from areas such as duty-free shops and hotels along with revenue from aeronautical services like aircraft landing, parking and ground handling charges. This means, for UDF computation, only a portion of non-aeronautical revenue will be taken into account for overall revenue, said sources. At present, the government-run airports are under Single Till model wherein both aeronautical and non-aeronautical charges are taken into account to fix landing and parking charges thus reducing UDF. In Delhi and Mumbai, which are privately run, only 30 per cent of non-aeronautical revenue is added in total revenue, sources said. D Sudhakara Reddy, Founder & National President, Air Passengers Association of India, said Hybrid Till is a ‘negative thing’ and will increase UDF, and in turn increase air fares. For instance, in Chennai, UDF is ?120, which will increase to ?150 in the new system. UDF is included as part of the airfare, he told BusinessLine. Aviation policy The Civil Aviation Policy is said to ensure uniformity and level playing field among various operators, including the Airports Authority of India, and future tariffs at all airports will be calculated on the Hybrid Till basis. B Govindarajan, Chief Operating Officer, Tirwin Management Services, an aviation consultancy firm, said considering the need for greater investments in airport ventures, Hybrid Till should be supported. The Airports Economic Regulatory Authority of India should consider increasing the percentage of non-aeronautical revenues. If the percentage is initially for 25 per cent, there should be a mechanism to gradually increase it to higher percentage slabs on year-to-year basis. In the long run, Hybrid Till will eventually become Single Till since investments would have given rightful return to investors, he said. There was a mixed reaction for shifting to Hybrid Till from Single Till with the International Air Transport Association (IATA), representing airlines globally, opposing it, while the Airports Council International (ACI), representing airports worldwide, welcoming it. IATA said moving to Hybrid Till will make air traffic expensive as it will impact the basis for tariff determination for private airports. Passenger charges in India will increase, making air travel more expensive. Welcoming the government move, the Airports Council International said in a statement that Hybrid Till will increase private investments in airports and enable the sector to play its role in facilitating growth in air travel. Of the 100 busiest airports in the world, half operate either under a Dual Till or Hybrid Till. A balanced hybrid approach creates incentives for airports to develop commercial activities independently of their aeronautical activities. Commercial activity is a vital resource to drive modernisation of airport infrastructure and improve the quality of passenger service, the ACI said. Growing passenger traffic In the last five years, passenger traffic in India has grown 8.6 per cent on an average, well above the global average of 5.2 per cent for the same period. Preliminary ACI forecasts suggest that the total passenger traffic in India will reach 320 million by 2020, up from 212 million last year, and double to over 600 million by 2030, placing India as one of the largest air transport markets in the world after China and the US, ACI said. Colton Sceviour Womens Jersey
Rajnikanth’s ‘Kabali’ gets re-branded AirAsia aircraft
AirAsia India, the official airline partner for Rajinikanth-starrer ‘Kabali,’ has unveiled its new re-branded aircraft featuring a livery dedicated to the upcoming movie and Rajni-fans. “AirAsia India unveiled its all new rebranded aircraft, with a livery dedicated to the most awaited movie of the year—Kabali,” said AirAsia in a statement. According to the company, this special aircraft is a mark of respect to the Thalaiva for his contribution to Indian cinema. AirAsia said that parts of the aircraft have been painted and stickered with the livery, bearing image of the 65-year-old actor from the movie. Reportedly, the planes from this low fare airline were used in a few scenes of ‘Kabali.’ The aircraft will be flying across the AirAsia India network covering destinations including Bengaluru, New Delhi, Goa, Pune, Chandigarh, Jaipur, Guwahati, Imphal, Vizag and Kochi. Derrius Guice Authentic Jersey
Mangaluru airport revenues up 27%
Aided by the increase in passenger handling, Mangaluru International Airport recorded 26.88 per cent growth in revenue during 2015-16. A press release by JT Radhakrishna, Director of Mangaluru International Airport, said that the airport achieved total revenue of ?85.62 crore during 2015-16 against ?67.48 crore during 2014-15. The airport handled 16.75 lakh passengers during 2015-16 against 13.07 lakh passengers in the previous fiscal, recording a growth of 28.15 per cent. Justin Falk Jersey
Two towns of north Bengal to have airports soon
The process of having airports in Malda and Balurghat, two towns of north Bengal, has started with the Airports Authority of India (AAI) agreeing to hand over airport land and runway to the state government. Transport department officials said AAI has agreed to hand over 132.66 acres and 114 acres of airport land including runway in Balurghat and Malda airport respectively for use by the state government initially for a period of 30 years at a token cost of Re 1. A cabinet decision in this regard has already been taken while an MoU for this purpose was signed today with AAI at ‘Uttar Kanya’, the state secretariat in the north Bengal. PWD will take up the development work of existing runway at Balurghat airport immediately, officials said, adding development of Malda airport will also be taken up as soon as possible. Kwon Alexander Womens Jersey
Intense competition amongst airlines becomes customer’s gain as last minute airfares were 52% cheaper this year
If you are planning to book air tickets for your next holidays, and are worried about the extra money that you have to shell out because of booking tickets at the last minute, which is 15 days before their travel date, relax! Turns out, booking air tickets last minute has become cheaper up to 52% as compared to last year, because of intense completion amidst airlines, excess capacity and lower fuel prices. Yatra.com analysed the fares and came out with a conclusion that average fares for travel on all dates between June 29, 2016 and July 4, 2016, when booked on June 28, 2016, were cheaper by up to 50% as compared to fares booked during the same time last year. “We are seeing a significant drop in airfares across sectors and this can be attributed to a reduction in oil prices by over 20% on a year-on-year basis, as well as a 7-8% increase in passenger capacity by the airlines. The drop in airfares has resulted in strong passenger demand which is up by 22% this year, resulting in increased passenger load factors and improved financial health of the sector as a whole,” Yatra.com president Sharat Dhall. Brian Boyle Jersey
Fliers to pay less for excess checked-in baggage from Friday
From Friday onwards, fliers will be required to shell out lesser money for excess checked-in baggage up to a certain limit as the revised fee structure comes into effect. Extra baggage on board to cost cheaper from 1 July 2016. ReutersExtra baggage on board to cost cheaper from 1 July 2016. Reuters Under the new tariff regime, only Rs 100 would be charged per additional kilogramme of checked-in baggage up to a certain level compared to the existing charge of Rs 300 per kg. The reduced rates, announced by the government earlier this month, was initially scheduled to come into force from 15 June. However, the implementation date was extended to 1 July by aviation regulator DGCA after airlines sought more time to upgrade their system. Currently, all domestic airlines allow free checked-in baggage up to 15 kg. Beyond that, they charge Rs 300 per extra kg. Only Air India allows a free baggage of up to 23 kg. Mike Hull Jersey
Indigo’s UK training facility deficient: DGCA
Indigo airlines has been asked to cease sending their pilots for training to a simulator facility in the United Kingdom which has been found deficient during inspection by aviation regulator Directorate General of Civil Aviation (DGCA). Such action has been taken for the first time by DGCA after technical glitches were found in May in the Coventry simulator facility. Besides Indigo, other carriers, including SpiceJet, GoAir, Vistara and Air Asia, send their pilots to training facilities abroad. Airline sources confirmed that 50 pilots have been trained at the Coventry unit in the last one year DGCA officials said that airlines use the simulator facilities abroad to train pilots in non-normal training, like engine failure and low visibility training, since the same cannot be carried out on a real airplane. “Simulator facilities offer safer flight training, fuel conservation, reduction in adverse environmental effects and reduced cost of training to the operators,” DGCA M Sathiyavathy said. According to rules, DGCA permits usage of aircraft flight simulators for various training purposes of flight crew, such as initial, refresher, recurrent, transition, up-grade and others, which may be given credit towards the flight training requirements for issue and renewal of flight crew licenses, endorsements and ratings. They also prove useful in the training of check pilots, instructors and examiners. “It is, therefore, necessary that performance of the simulators be evaluated prior to the approval for use,” a DGCA official said. Cameron Johnston Womens Jersey
AAI sets up panel to study hiving off air navigation services
Reviving a long-pending proposal, the Airports Authority of India (AAI) has set up a two-member expert panel to explore ways to hive off air navigation services into a separate entity Even though the idea to make Air Navigation Services (ANS) a separate and independent unit was mooted in 1970s, there has not been much movement forward despite some detailed studies being done in this regard. The two-member expert panel comprises former Civil Aviation Secretary Ashok Chawla and former DGCA Chief Satinder Singh, a senior official said. The two-member expert panel comprises former Civil Aviation Secretary Ashok Chawla and former DGCA Chief Satinder Singh, a senior official said. According to the official, the committee, which would look at ways of making ANS a separate unit from AAI, is expected to submit its report within three months. The setting up of the panel assumes significance against the backdrop of rising domestic air traffic which is expected to go up further following the implementation of the new civil aviation policy.
HC refuses to stay DGCA order on lower excess baggage fee
The Delhi High Court today refused to stay aviation regulator DGCA’s decision to lower the fee structure for excess checked-in baggage carried by fliers, with the government fixing a rate of Rs 100 per additional kilogramme. As per the new regulation to be implemented from July 1, the airlines would now charge Rs 100 per extra kg till 20 kg instead of the current rate of Rs 300. At present, all domestic airlines allow free checked-in baggage up to 15 kgs. Beyond that limit, the charge is Rs 300 per extra kg. Only Air India allows free baggage up to 23 kg. A vacation bench of Justice V Kameswar Rao turned down the request made by Federation of Indian Airlines (FIA), which has Jet Airways, SpiceJet, IndiGo and GoAir as its members, saying the issue before it required consideration and the authorities have to be heard on merit. The court issued notice to the Ministry of Civil Aviation and the Directorate General of Civil Aviation (DGCA) asking them to file their reply by July 2. It, however, fixed the matter for July 8 while declining FIA’s request to at least defer the date of implementation of the circular till next date of hearing on the grounds that it may create chaos among passengers putting them in difficulty. The court said the charge will be restored, if the FIA succeeded. FIA questioned the power of the DGCA, saying it did not have jurisdiction to issue such a circular and the amount of Rs 100 per kg fixed, should be according to the destination. The Ministry’s counsel opposed the FIA’s contention saying the circular is only applicable to domestic airlines. The counsel said the rates were being regulated keeping in mind the harassment suffered by the passengers at the hands of the airlines. Kyle Rudolph Womens Jersey