Je-Etihad deal: Corp affairs, civil aviation ministries raise concerns

New Delhi: Jet Airways and Etihad might have to re-work the ownership structure proposed in the Rs 2,058-crore deal with key ministries including civil aviation and corporate affairs, raising concerns over ultimate control of the domestic carrier.
The issues were voiced at the Foreign Investment Promotion Board (FIPB) meeting on Friday, sources said.
The decision on the deal, struck by Jet Airways to sell 24 per cent of its stake to Abu Dhabi’s Etihad Airways, was deferred by the FIPB.
The deal is the largest foreign investment proposal in the sector after the government allowed foreign carriers to pick up stake in Indian airlines last September.
Concerns have been primarily raised on the proposed ownership and control structure of the domestic airlines.
Sources said capital market regulator Securities and Exchange Board of India (Sebi), fair trade regulator Competition Commission of India and the department of industrial policy and promotion also had reservations about the transaction.
17/06/13 PTI/Business Standard

India red flags Jet Airways being piloted out of Abu Dhabi by Etihad Airways'

The civil aviation ministry has raised two key concerns regarding the proposals accompanying the Rs 2,060 crore Jet-Etihad deal. Of these, a plan cited by the carriers to shift some of the operational departments of Jet Airways to Abu Dhabi, which in effect would mean moving the 'place of business' for Jet out of India, has been specifically objected to by the ministry.
The objections raised by the ministry are over and above the issue flagged by the corporate affairs ministry and the Securities and Exchange Board of India (Sebi) pertaining to the effective control of the airline by the Abu Dhabi-based carrier with just a minority stake.
"We have raised concerns over Jet Airways' plan to shift key operational departments like network planning and others out of India over a period. This could eventually mean a change in place of business and we are not inclined to allow this," said a senior civil aviation ministry official.
17/06/13 Mihir Mishra/Indian Express

Is Etihad getting too much control in Jet Airways with too little investment?

When the UAE flag carrier Etihad Airways entered into a deal with Jet Airways in April this year, was the transaction limited to just picking up a 24 per cent stake? Or did it also include management control?
This is the question that is bothering the Indian stock market and investment regulators - read the Securities and Exchange Board of India and Foreign Investment Promotion Board (FIPB). They are now carefully examining every line in the shareholder agreement between the two airlines to see if the Gulf carrier has received any disproportionate rights and privileges from Jet Airways' promoters.
Indian regulations cap foreign direct investment in the airline sector at 49 per cent with a view to ensure that management control remains firmly in the hands of Indians. The UAE carrier, however, has extracted certain concessions from Jet promoters by having a few clauses inserted in the shareholder agreement. It is this set of clauses that has now sparked off a debate and blocked approval of the first FDI deal in an Indian carrier since the relaxing of FDI rules rel3ating to aviation last year.
17/06/13 KR Balasubramanyam/India Today

Jet-Etihad deal: Mideast carrier to enjoy substantial say in decisions

Mumbai: The shareholders agreement between Abu Dhabi-based Etihad Airways and Jet Airways has been structured in such a way as to create a substantial role for the Middle-Eastern carrier in decision-making at the Mumbai-based airline, an ET study of the shareholders documents shows.
The agreements does not confer any obvious rights or veto powers to Etihad but its concurrence will have to be taken for most decisions, including routine ones, lending credence to the belief that the airline will be some kind of a joint manager of the airline along with Naresh Goyal, who owns 51%.
17/06/13 M Padmakshan/Economic Times

Discrepancies held up Jet-Etihad deal: Ministry

New Delhi: Discrepancies between the original proposal and the one that was presented before the Foreign Investment Promotion Board (FIPB) made the Civil Aviation Ministry red flag Etihad’s proposal to acquire a stake in Jet Airways.
A senior Ministry official told Business Line that in the original proposal, Jet Airways had said that one-third of its board members would be Indians, which was one of the requirements of Indian law.
“But when the proposal was taken up by FIPB last Friday, it was noticed that there was no clarity on whether the requirements of Indian law were being met by the airline. There was also confusion on whether the place of origin of business would change as Jet had indicated that some key decisions will be taken in Abu Dhabi,” a senior Ministry official said, explaining the reason behind deferring the proposal.
Officials added that the Indian Civil Aviation Requirement, the basic requirement for operating an airline in India, required the airline to keep the aviation authorities informed of any changes made in any proposal.
17/06/13 Business Line

Jet's code share with Air France-KLM

Mumbai: Jet Airways has entered into code share pacts with Air France-KLM enabling the European airlines to sell tickets on Jet's domestic routes.
Etihad Airways which is picking up 24% stake in Jet Airways already has a code share agreement with Air France-KLM but is not a member of any airline grouping such Star Alliance, oneworld or SkyTeam.
Star Alliance is keen to rope in Jet Airways along with Air India. Air India's membership to the alliance has been put on hold while Jet too sought government approval to join the alliance.
Jet Airways had sought approval to enter into a code share partnership with Lufthansa which is a founding member of Star Alliance.
An aviation source said the marketing tie up with Air France-KLM suggests that Jet Airways is going the SkyTeam way. SkyTeam members also include Delta Airlines, Korean Air, Kenya Airways, Saudia Airlines amongst others.
17/06/13 Business Standard

Air Costa to begin operations next month

Hyderabad: Air Costa, the first ever regional domestic airline based out of India's Southern state Andhra Pradesh, announced starting no-frills air carrier services connecting Southern cities in a month's time.
Part of the Vijayawada-based construction group LEPL, Air Costa said it will launch the airline with a fleet of three E jets from Embraer suited for the regional short-haul connectivity between tier-II and tier-III cities with the major metros.
Air Costa will have its maintenance based and headquarters at Vijayawada where the aircrafts have already landed with major approvals in place. The final approval from the Director General of Civil Aviation (DGCA) is expected in a week or so, said its chief executive officer Captain KN Babu.
The air carrier plans to operate flights to six stations in the first phase in South connecting Bangalore, Chennai, Hyderabad and Vijayawada and expand operations to secondary cities in the North and North Eastern region in the next phase after reviewing operations for three months, he said.
17/06/13 Economic Times

Ramadorai appointed AirAsia India chairman

New Delhi: What started as a buzz following AirAsia CEO Tony Fernandes’ description of the yet-to-be-announced chairman of the low-cost airline as a “towering man”, has been confirmed.
S Ramadorai, who was at the helm of Tata Consultancy Services (TCS) for over a decade till 2009, will be named the chairman of AirAsia India, Fernandes just confirmed in a tweet.
“I would like to confirm Mr Ramadorai as Chairman of Airasia India. A giant of Indian Industry. A great thinker. Man from the south,” Fernandes said..
Ramadorai, who played a key role in the international development of TCS, is currently adviser to Prime Minister Manmohan Singh in the National Council on Skill Development, and holds a Cabinet minister’s rank in the government. He’s also vice-chairman of TCS.
With this, majority of the AirAsia board will have Tata group representatives.
17/06/13 Nivedita Mookerji/Business Standard

AirAsia to use Kamaraj terminal

Chennai: With AirAsia India’s proposal to get airline license in the final stage, the proposed low-cost carrier has decided to use the now closed Kamaraj Domestic Terminal to set up its corporate office in the city. Airports Authority of India (AAI) chairman V.P. Agrawal said the authority was ready to consider the airline’s request to use the now defunct building, but added it might have to vacate when AAI refurbished the old terminal to cater to extra traffic.
“The airline has to first get formally recognised as AirAsia India. Then it has to formally apply for space. Since, the old terminal is not in use now, it will not be a big issue to allot the space to them,” said Mr Agrawal, who added that the airline can also look at the option of using one full floor in the recently exp­anded cargo complex. But airport sources said  the airline would prefer the old terminal because it would have ample parking space unlike the cargo building.
17/06/13 S Sujatha/Deccan Chronicle

Pawan Hans mulls flights to key destinations in North Bengal

Kolkata: For travellers, flying to destinations in North Bengal may soon become easier. State-run helicopter operator Pawan Hans Ltd expects to introduce fixed-wing aircraft “shortly” to places such as Cooch Behar, Bagdogra, Malda and Siliguri.
Pawan Hans on Sunday launched the helicopter service as part of an agreement (MoU) signed with the West Bengal Government on March 18.
“We have already conducted the survey for operating fixed-wing aircraft. Now, we require clearances from the Director-General of Civil Aviation. We will be able to begin operations shortly,” Sanjay Kumar, General Manager, Marketing, Pawan Hans, told Business Line on the sidelines of the event.
According to him, there is a need for infrastructure development before the operations take off.
Vikram Sen, Principal Secretary, West Bengal Tourism Department, said: “We have suggested Pawan Hans three to four places in North Bengal including Malda. There are old airstrips in these places and some of them need to be refurbished. Pawan Hans will go and examine the airstrips.”
17/06/13 Ayan Pramanik/Business Line

Paris Airshow: Orders for big jets make a splash

Paris:Big finance waded into a rain-soaked Paris Airshow with more than $10 billion in orders for jumbo passenger jets as planemakers duelled over strategy for large aircraft on Monday.
The world's biggest aircraft lessor, a unit of General Electric , became the second buyer to endorse a larger version of Boeing's 787 Dreamliner, weeks after the lightweight jet went back into service after a three-month grounding.
Confirming a Reuters report, the GECAS subsidiary said it would sign up for 10 of the stretched 787-10 passenger planes, joining a $30 billion order haul that industry sources say Boeing is assembling to formally launch the jet on Tuesday.
And an influential German leasing company, Doric Asset Finance, little known outside the specialist world of aviation financing, splashed out on 20 Airbus A380 superjumbos worth $8 billion at list prices to anticipate rising demand.
Total orders on day one of the world's largest aerospace event swelled to more than $30 billion in three hours as heavy rain lashed the Le Bourget pavilions.
But, despite the early flurry, the number of orders this year was expected to be down on the last Paris show in 2011, GECAS chief executive Norman Liu told reporters.
17/06/13 Siva Govindasamy and Brenda Goh/Reuters/Business Standard

Boeing-Airbus dogfight to dominate world's top air show

Paris: The world's biggest air show takes to the skies on Monday, with a battle between Boeing and Airbus for orders in the lucrative market for wide-body planes set to dominate the Paris event.
European manufacturer Airbus managed to steal a march on its American rival before the show -- at Le Bourget just north of Paris -- with a successful maiden flight of its new A350 long-haul plane.
Airbus is pinning its hopes on the fuel-efficient A350 to compete in the long-haul sector after gradually winning more than half of the market for medium-haul, single-aisle planes that carry an average of 150 passengers.
The A350 is expected to conduct a fly-by of the air show towards the end of the week, hoping to woo potential customers.
During the show, famous for high-profile announcements of big-money deals, Airbus hopes to add a slew of orders for the plane -- set for delivery at the end of 2014 -- to confirmed contracts with Qatar Airways, British Airways and Hong Kong's Cathay Pacific.
17/06/13 AFP/Times of India

Air India's Dreamliner to light up Parisian skies

Bangalore: A Boeing 787 Dreamliner in Air India colours will be the only Indian aircraft which will be on display at the Paris Air Show. This aircraft which will be inducted into the national carrier’s fleet of Dreamliners in the days to come will showcase its flying capabilities in the daily flying displays at the 50th Paris Air Show which will take place at Le Bourget exhibition centre from June 17 to 23.
This display by the Boeing 787 will be its first in an air show after the aircraft was grounded in January by carriers worldwide due to faulty batteries. Many carriers around the world including Air India recently started operations after the faulty batteries were replaced with new battery packs. Air India currently owns six Dreamliner aircraft and the national carrier will in total induct 27 Dreamliner planes following an order it had placed with Boeing in January 2006. Meanwhile, the non-presence of any Indian manufactured aircraft in the air show is surprising considering that the Advanced Light Helicopter and the Intermediate Jet Trainer had taken part in aerial and static displays at the previous Paris Air Shows.
17/06/13 Hemanth CS/Daily News & Analysis

India Post starts logistic service in tie-up with Air India

New Delhi:  India Post on Monday announced starting logistic services in association with Air India at 15 airports in India.
The service will be at 15 linking airports, Agartala, Delhi, Mumbai, Kolkata, Nagpur, Bangalore, Hyderabad, Chennai, Pune, Ahmedabad, Imphal, Guwahati, Patna, Lucknow & Trivandrum (Thiruvananthapuram), an official statement said.
The services are available under three categories-- airport-to-airport, city-to-city and door-to-ddor.
Under door-to-door, pick-up is from the premises or delivery at the permises of the consignment.
17/06/13 PTI/Economic Times

GMR gets clean chit from Maldives probe agency in Male airport case

Bangalore: Bangalore-based infrastructure company GMR Infrastructure, which was forced to hand over the Male airport to the Maldives government, has got a breather. The Anti-Corruption Commission (ACC) of Maldives has said that there was no corruption involved in leasing of Ibrahim Nasir International Airport to GMR.
The investigation report on the leasing of Maldives airport to GMR states that there is a concrete record on the concession agreement signed between the Nasir Ali government, GMR consortium and Maldives Airports Company (MACL). ACC states that no corruption was found in the bid evaluation phase of the project.
17/06/13 Times of India

New Kerala airport project in Idukki runs into protests

Thiruvananthapuram: Protests have marked the process of identifying land for the proposed new airport at Anakkara in Idukki district. Some of the protesters recently blocked the district administration officials including the collector when the latter arrived at the scene to allay doubts and concerns of the local people regarding the airport.
Reports quoting the district collector T. Bhaskaran said that a mob had deliberately created trouble on the day when leaders of different political parties and associations had been invited to discuss the details of the airport project.
The collector is expected to report the matter to the state government. The state government has earmarked Rs 50 million (Dh3.18 million) towards initial works for the project.
17/06/13 Akhel Mathew/Gulf News

Emergency landing by Saudi aircraft

Mumbai: Even as inclement weather led to diversions and delays of several flights on Sunday, a Saudi Airlines plane made an emergency landing at the city airport after its pilots received a fire warning.
Around 4.27pm, a full emergency was declared for flight SV 748 coming from Riyadh, said an MIAL spokesperson. A fire indication in the rear cargo hold led to the emergency call. The aircraft landed safely at 4.35pm, following which it was parked in an isolation bay. But as no fire was detected, the emergency was withdrawn an hour later.
17/06/13 Times of India

Hindustan Aeronautics Sets Five-Year Goal for Fighter, Trainer Production

Paris: A target for criticism over delays in projects in the past, India’s largest defense manufacturer, government-owned Hindustan Aeronautics Ltd. (HAL) is undergoing a transformation of its human resource through training and innovative programs. This is focusing on two urgent requirements–the overdue Light Combat Aircraft (LCA); and the Intermediate Jet Trainer (IJT). HAL (Chalet A 124) has confirmed that the projects will go into production in the next five years.
Even as India opens up to procuring more Western military aircraft and its civil fleet grows, HAL’s inclination to establish partnerships is becoming increasingly apparent. For example drawing on its inherent strengths and an established infrastructure, the company is now “shaping plans” to enter the maintenance repair and overhaul (MRO) sector along with a (private) partner, a senior Minister of Defence told AIN.
17/06/13 AINonline

IA asked to pay passenger for ticket for its overbooked flight

Ahmedabad: A consumer court has asked the Indian Airlines to pay for ticket of a minor and harassment after the airline's flight was overbooked and the minor had to take another plane to reach Ahmedabad from Delhi.
14-year old Fenil Shah, a chess player, had gone to Bhubaneshwar to participate in a tournament. On his way back home, he stayed at Delhi, from where his ticket for Ahmedabad was booked on May 31, 2001 in IA's flight IC-817. In the afternoon, while he was standing in a queue for boarding, he was intimated that the flight was full and he could not board the plane.
According to Shah, the airlines did not help him book his seat in other flights. Finally, he took a ticket in IndiGo Airlines by paying Rs 11,078. After he landed Ahmedabad, his mother immediately lodged a complaint with the Indian Airlines Traffic Service Terminal at Mumbai.
17/06/13 Saeed Khan/Times of India

France exudes confidence on Rafale sale to India

Paris: On the eve of the Paris air show at Le Bourget, France is exuding a quiet confidence that the contract for the sale of 126 Rafale fighters will be concluded before the year-end. The opening of the air show this year coincides with annual Indo-French Foreign Office Consultations when India’s Foreign Secretary Ranjan Mathai will meet his French counterpart, Pierre Sellal in Paris on Monday.
The CEO of Dassault Aviation Eric Trappier told journalists in Paris in a pre-air show interview that despite talks with the Indians being “pretty hard nosed” he expected the sale of 126 Rafale fighters to India to go through before the end of this year. “We would like talks to conclude as soon as possible. If we listen to our Indian friends and if we hear ourselves, we would like to finish in 2013. Finish means signing a contract,” Dassault’s new CEO who took the reins early this year said.
Mr. Trappier brushed aside reports of difficult negotiations saying talks were “good humoured”. He said there had “never been obstacles” and discussions now closely focused on Indian license production, assemblage and component manufacture for 126 fighters. India has an option for another 63 aircraft, which is currently under discussion.
17/06/13 Vaiju Naravane/The Hindu

Jet Airways makes progress on debt

Mumbai: Jet Airways, the country’s largest air carrier, expects its debt burden to  decline to Rs 8,250 crore by the end of this financial year, a fall of nearly 50 per cent from the corresponding figure at the end of 2011-12 (see chart).
The process has got an impetus from the proposed equity infusion by Etihad Airways of Abu Dhabi. “The infusion from Etihad will help Jet to repay most of its working capital loan. The company will then be left with only debt related to aircraft acquisition that it can service comfortably,” says Jasdeep Walia, aviation analyst at Kotak Institutional Equity.
He estimates Jet’s working capital loans to be around Rs 5,000 crore of its total debt of Rs 13,200 crore at the end of FY12. (Click for charts)
Etihad is to invest around Rs 2,100 crore for a 24 per cent equity stake in the company. It is to also take 50.1 per cent in Jet Privilege, the customer loyalty programme, for around Rs 850 crore. In addition, Jet entered into a sale and lease-back agreement with Etihad for its three pairs of slots at London’s Heathrow airport for five years. This deal is valued at around $70 million (Rs 385 crore) . If Jet is able to repay that loan at the end of the period, the slot ownership will revert to it.
18/06/13 Krishna Kant/Business Standard

Airport website shows flight delays, authorities deny

Pune: Flight arrivals and departures at the city airport witnessed a long delay on Monday. By evening, almost six departures were delayed and arrivals remained affected with 11 flights arriving late. The flights that were excessively delayed were bound for Delhi, Bangalore and Chennai. One flight to Delhi was cancelled.
Two flights from Hyderabad and Delhi landed late, while some flights from Delhi and Bangalore were excessively delayed. Six of the delayed flights were from Delhi, while the others were from Chennai, Hyderabad, Mumbai and Bangalore. Even as Pune Airport website showed that the flights were delayed, the airport terminal manager said, "There was only one delay - a Spice Jet flight from Delhi - which arrived at 11.35 am. However, it was an operational delay and not due to bad weather conditions." Officiating airport director Raj Shekhar said the airport authorities had not received any information about flight delays and airlines should be contacted for more information.
17/06/13 Indian Express

Pilot-controller meet aims to make air travel safer

Recognizing the need for more effective face-to-face dialogue, Director General of Civil Aviation Arun Singh has instructed all regions to formally put in place a platform where pilots and controllers can regularly meet to clarify issues and clear differences. Kolkata has taken the lead in the matter and is set to organize the first such formal Controllers' and Pilots' Interactive Forum (CAPIF) later this month. A steering committee has been set up to discuss complete functionality of CAPIF.
"Kolkata did organize a CAPIF in 2007 and again in 2010. A CAPIF was also held in Guwahati in 2010in which controllers from 12 stations in the northeast as well as Air Force participated. But all of them happened due to the personal initiative of some. There was a need to institutionalize the process and make CAPIF a regular feature of civil aviation in India and that is what we are set to initiate from Kolkata," Singh told TOI.
To understand and appreciate each other's concerns, constraints and work environment, airline pilots will have to visit the area and tower control and spend some time there.
Controllers, too, will be encouraged to get into the cockpit whenever a plane is making a long stop-over at the airport. A proposal to get a controller to actually get into a pilot's seat at a simulator is also on the table.
17/06/13 Subhro Niyogi/Times of India

Flight diversions ruled Sunday evening at Mumbai airport

Mumbai:  Flight operations stayed normal on Monday at Mumbai airport. However,massive delays and flight diversions marked Sunday, with 15 flights diverted to other airports. Low visibility, heavy rains and presence of thick thunder clouds made it impossible for aircraft to make a final approach for landing. Other flights were delayed for 30-40 minutes on an average. The cascading effect of the diversions continued till way past midnight.
Around 7.30 pm, no flight operations were possible for about 25 minutes due to heavy rains, said airport officials. This forced six arriving flights, including an Air India (AI) flight from Delhi and an Indigo flight from Chennai to divert to Goa and Ahemdabad respectively. "It was the beginning of the peak traffic hour. However, pilots could not see clearly due to rain. All flights had to hold over for 25 minutes before they could make a safe approach to land," said an airport official. This created congestion and a long landing queue in the sky. Some of these flights were running out of fuel and hence, were asked to divert.
17/06/13 Chinmayi Shalya/Times of India

No commission: Travel agents to 'go slow' on bookings

Mumbai: Travel agents across the country will 'go slow' on selling airline tickets of most Indian carriers from Monday. This is intended to protest against the airlines' policy of not paying commission to agents on transaction of tickets. The agents are likely to suspend booking on certain airlines. The decision was taken by agents individually and not the associations.
Currently, only full-service carrier Jet Airways pays agents a commission of one percent. Other airlines have adopted a zero commission policy. Agents charge passengers over and above the ticket fare. They, however, demand that airlines, including Jet Airways, pay them a five-eight percent commission.
17/06/13 Times of India

Biju Patnaik Airport art gallery boost for Odisha artists

Biju Patnaik Airport has decided to set up two art galleries on its premises soon, where artworks of Odisha's artists will be exhibited and will be available for sale.
"Odisha is rich in traditional arts and crafts and Odia painters and sculptures have created a niche for themselves in the art world. Since Biju Patnaik Airport will soon be converted into an International airport, the art galleries will help indigenous artists get a good platform," said airport director Sharad Kumar. Such art galleries are a common feature in international airports in foreign countries, though the concept is not so popular in India yet, the director pointed out.
17/06/13 Minati Singha/Times of India

BMTC plans to revamp services to airport

Bangalore: With the Bangalore Metropolitan Transport Corporation (BMTC) airport buses being only half full most of the time, the transport corporation has planned a revamp of its services. This will not only improve the frequency of buses to the airport, but will also ensure that passengers do not have to wait for BIA services alone to get to the airport. To do this, the BMTC plans to make Mekhri Circle a ‘hub’ for airport buses.
Anjum Parvez, Managing Director of BMTC, said that BMTC has some land near the bus stops at Mekhri Circle.
“We will make this into an air-conditioned waiting lounge from where commuters can take buses to the airport,” he said.
The lounge at Mekhri Circle will have a cafeteria, toilets, seating facilities for at least 50 people and an information board displaying flight departure and arrival timings, he added.
17/06/13 Merlin Francis/New Indian Express

Airports Authority of India staff quarters too in a state of neglect

Nagpur: It is not only the old terminal building and its surroundings that lay neglected and unkempt. Even the staff quarters of the airport are in a shambles. It seems that only the outer picture of the airport, the new terminal building and its approach, is maintained and kept spick and span.
As one enters the staff colony of the airport one is distinctly reminded of the photos seen in the collections of abandoned settlements after a disaster. And this description of the place is not an exaggeration. Broken playing equipment in a playground infected with overgrown grass, garbage strewn here and there and a few structures, some of them in a dilapidated condition spread over a huge area of land, is the image to capture in the colony.
There is no facility in the colony for garbage collection and its disposal. The residents just collect it beside their quarters and burn it when a considerable heap is collected. The result of this is that piles of garbage can be seen here and there in the colony, so can plastic bags flying lazily around when caught in the wind.
17/06/13 Aparna Nair/Times of India