Airlines look at possibility of fare hike

New Delhi: Exactly a fortnight after airlines hiked fuel surcharge by Rs 400, oil companies on Tuesday yet again raised ATF (aviation turbine or jet fuel) prices by 6% or about Rs 2,300 per kilolitre. Now airlines are evaluating whether they should hike fares again. What could save consumers from more shocks is the fact that the post summer holiday to festive season (July-September quarter) is the leanest travel season. Airlines are, in fact brining out special offers to stimulate demand in this lean season.
While Jet and Kingfisher spokespersons said they are evaluating the impact of the latest hike, Air India ruled out any further hike at this moment. After the mid-June hike, fuel surcharge for domestic flights varies from Rs 1,499 to Rs 3,400. If airlines don't hike fares, say industry sources, one thing is certain — they need to withdraw flights to reduce operating expenses.
Tuesday's hike is the fourth in two months. On June 15, the ATF prices were hiked by about Rs 3,949 per kilolitre. Following the latest hike, ATF prices in Delhi from Wednesday will be Rs 38,558 per kilolitre. In Mumbai, the rate will go up from Rs 37,367 per kl to Rs 39,789 per kl. International crude oil prices have firmed to a seven-month high of $73 per barrel on hopes of demand revival in US.
Since ATF accounts for almost half of airlines' operating cost in India, the aviation industry is worried over how they would survive high costs and low passenger loads.
01/07/09 Times of India

Oil companies raise ATF prices by 6 per cent

New Delhi: For the fourth time in two months, state-run oil firms on Tuesday hiked jet fuel or ATF price by more than 6 per cent on firming international oil prices.
Indian Oil, Bharat Petroleum and Hindustan Petroleum raised aviation turbine fuel (ATF) price by Rs 2,306 to Rs 38,558 per kilolitre in Delhi effective midnight tonight, an IOC official said.
The hike comes on back of over 12 per cent hike on June 15. ATF price on that day were raised by Rs 3,949 to Rs 36,252 per kilolitre in Delhi.
International crude oil prices have firmed to a seven-month high of $72 per barrel on hopes of demand revival in U.S.
The three state-run retailers had from June 1 raised jet fuel rate by an average of Rs 108 per kl, which came on the back of a 1.8 per cent hike in rates on May 16.
In Mumbai, home to the nation's busiest airport, the rate will go up from Rs 37,367 per kl to Rs 39,789 per kl. The rise in ATF price, which constitutes 40 per cent of airlines' operating cost, may further put pressure on cash-strapped domestic carriers.
30/06/09 PTI/The Hindu

AI Express to cancel some Gulf services, add to domestic routes

Mumbai: The financial crunch at Air India is taking a toll on its subsidiary Air India Express which has now decided to pull out a few international flights and deploy them on domestic routes in the country.
Air India Express will pull out flights from routes in the Gulf and South-East Asia among which are Abu Dhabi, Bahrain, Singapore and Kuala Lumpur. The redeployment of these international flights will be in Delhi, Mumbai, Bangalore, Hyderabad and Chennai. This process will take place around September this year with Air India Express functioning as a low-cost service.
A senior Air India official confirmed that the company is already working on a low-cost model. “We noticed that travellers, especially corporates, have switched over to low-cost airlines from full service carriers on many domestic sectors,” he added.
Tara Naidu, chief of commercial at Air India Express told ET: “Air India has drawn up a strategy where the merged entity Air India (the Indian Airlines-Air India combine) will emerge as a full-service carrier and Air India Express will be our low-cost service and both will continue to fly domestic and internationally.”
01/07/09 Mithun Roy/Economic Times

Air India's low-cost arm goes domestic

Mumbai: Air India Express, a subsidiary of national carrier Air India, will enter the domestic low-cost space in a few months. The plan, however, is still in the proposal stage, said Tara Naidu, chief commercial officer, Air India Express.
The subsidiary already flies on Gulf, South Asia and Southeast Asia routes.
Naidu said, "We want to get into domestic operations because people prefer low-cost carriers to full-service ones. Our domestic operations will cover both metros and non-metros and our existing fleet, along with that of Air India, will be used for this venture," she said.
Air India's fleet stands at 68, of which 22 planes belong to Air India Express. Naidu said the parent's other resources, too, will be redeployed for the arm's domestic operations.
Air India Express operates 202 flights a week to 14 destinations outside India from 17 cities.
01/07/09 Neha Rishi/Daily News & Analysis

Ground-handling policy deferred once again, new deadline Dec 31

New Delhi: The new ground-handling policy scheduled to come into effect from the first week of July has been delayed for a second time, the civil aviation ministry said today. The policy deadline has been extended for another six months, to be operational now by December 31 of this year.
“It’s not that the ground-handling policy has been delayed, it’s just that the exit of private airlines has been kept in abeyance. There were certain issues with private airlines. The airlines have already invested in ground-handling equipment and there was also the question of 31,000 people hired by the airlines for providing ground-handling services,” said civil aviation secretary M Nambiar. However, the ministry will try to resolve the issues in the next few months as self handling by airlines is not allowed anymore, Nambiar added.
One of the mandatory ground handlers, the National Aviation Company of India Limited (NACIL) or Air India has still not formalised the joint venture agreement (JV) with Singapore Airlines’ ground-handling firm Singapore Airport Terminal Services (SATS).
Earlier, the Committee of Secretaries formed to resolve issues related to the ground-handling policy had decided to recommend to the Cabinet Committee on Security (CCS) to delay the policy implementation further by three months. It had cited passenger inconvenience and lack of time to put in place the requisite infrastructure as reasons for the delay.
01/07/09 Indian Express

‘Runway man’ delays take-off

Calcutta: A SpiceJet flight was stranded on the main runway of Calcutta airport on Tuesday morning after the pilot claimed to have spotted a man on the runway. An inspection, however, revealed the man, a bird-chaser, was standing beside the runway.
The departure of the Mumbai-bound Spicejet flight was delayed by 10 minutes, forcing the authorities to ask four flights about to land to hover for around 15 minutes.
The SpiceJet flight, with 92 passengers on board, was preparing for take off around 8.30am when the pilot told the air traffic control (ATC) that a man was standing on the other end of the runway.
“A team rushed to the spot but found the man, a bird-chaser, beside the runway,” said an airport official. “The ATC got in touch with the pilot but he refused to take off till the man was removed from the spot.” The bird-chaser was finally asked to leave, after which the flight took off.
01/07/09 The Telegraph

Tier II airports to get ATF tax cut

Bangalore: Even as state-run oil firms hiked the Aviation Turbine Fuel (ATF) by more than 6 per cent on Monday, the Karnataka government in a bid to give a fillip to flight operations between Tier-II cities in the state is considering to reduce tax on the Jet Fuel to 24 per cent from the present rate of 28 per cent.
Government sources told Express that the reduction is aimed at improving the intra-city air connection which has been badly affected following private airlines withdrawing service due to shortage of passengers.
“The government will issue an order in a couple of days on the reduction of ATF tax which will be applicable to flights operating from airports other than Bangalore and Mangalore,” said sources. The government has held talks with airlines on the matter and is hopeful that flight operation’s from Tier-II airports like Belgaum and Hubli will be back to normal. Earlier this month, flight operations has ceased from the Sambra Airport, Belguam after Kingfisher Airlines which was operating flights between Belgaum and Bangalore four days a week had stopped service due to mounting losses.
01/07/09 Hemanth CS/ExpressBuzz

Fraport in talks for joint bidding for Navi Mumbai airport

Mumbai: German firm Fraport India today said it is in advanced discussions with some entities to jointly bid for the proposed Navi Mumbai airport.
"We are in advanced stages of discussions with major players (corporates) for jointly bidding for the proposed Navi Mumbai airport," Fraport India Managing Director Ansgar Sickert told reporters on the sidelines of an aviation summit here.
The company is interested in airport management as well, he said, adding that "if there is no airport management, then we will not bid for it".
30/06/09 Press Trust of India/Business Standard

Non-metro airport plan hits fresh snag

New Delhi: The non-metro airport development project appears to have hit another snag.
After inordinate delay in calling bids for the city-side development of these airports, the government is now thinking of calling a joint bid for all of them.
State-owned Airport Authority of India (AAI) is said to have cited difficulties in monitoring different bidders across these many airports and wants a single bidder to do city-side development at all 24 of the airports that are to be developed.
For the remaining 11 non-metro airports, it has become clear that city-side development here holds little potential and therefore, no bids need to be called.
But wouldn't joint bidding for 24 airports raise issues of monopoly?
A senior official from the ministry of civil aviation said "This is merely the thinking at this stage, nothing has been decided as yet. But I am sure there won't be any issues related to monopoly... the airport operators of Delhi or Mumbai may charge an exorbitant amount for parking, etc and there is nothing the government can do to stop it. So if a single bidder is allowed to develop parking space/malls etc at all these airports, there should really be no case for monopoly."
The ministry is in the process of appointing a consultant for this process and an RFP (request for proposal) will be prepared thereafter. The official said no approval is required from the Union Cabinet for calling the joint bid.
01/07/09 Sindhu Bhattacharya/Daliy News & Analysis

Grenade-like object non-lethal explosive substance: Police

Chennai: A grenade-like object found at the Meenambakkam airport here on Tuesday sparked off a security alert, but police said it was a "non-lethal explosive substance" used by armed personnel for training purposes.
Police officials told PTI that the material, which had numericals to certify its make, was found to have been made in Sivakasi, the fireworks hub of Tamil Nadu.
"It is a non-lethal explosive material used by military and para-military personnel for training purposes. It had a wick connected to it which means it could be used after lighting it," they said.
Officials said they were looking into how the object, which has been taken to a safer place, found its way into the airport car parking area, from where it was recovered after a driver alerted the airport officials.
Earlier, Personnel from Bomb Disposal Squad of the CISF and Bureau of Civil Aviation Security (BCAS) cordoned off the area before taking the object to a safer zone.
30/06/09 PTI/The Hindu

BCAS yet to pull up its socks

Chennai: The existence of a Bureau of Civil Aviation Security (BCAS) at the Chennai airport looks like a big joke.
The body that is responsible for ensuring airport security operates in the worst of government offices module as it only clears the paperwork that comes to its desk.
“It is very bureaucratic in the sense one doesn’t raise an eye to security violations that are glaring in the eye,” said an airport source. It is not only the small issues that the BCAS is turning a blind eye to but also the larger safety violations that are just being allowed.
For instance, people are allowed inside the terminals and airport banned areas without proper passes because of their familiarity. “The terminal expansion work that is taking place is right outside the parking bays of the planes. Close to 500 workers have been working there for months together and they have no pass from day 1. Out of them there are 300 labourers who have been working for a long time but they don’t have any pass either.
If one was to go by rules, no one is allowed near the airport area without a photo identity pass issued by the BCAS. But the authorities have set this rule aside. Neither are there any background checks on these labourers who come from the Eastern part of India nor is their adequate security around the place where the construction is going on near the parking bays and the runway. In such a scenario what is the point posting men on the terminal gates with rifles in their hands?” explains an airport staff.
01/07/09 ExpressBuzz

Jet, Sahara fail to resolve dispute over buyout deal

A meeting of top officials of Sahara India and Jet Airways to resolve the dispute over the buyout of Sahara Airlines by the latter has not resulted in any settlement.
A Sahara spokesperson confirmed that the meeting between top managements of the two companies took place recently to resolve the issues related to the Jet buyout of Sahara but no settlement was arrived at.
Asked whether Jet officials had offered to pay Rs 300 crore to settle the dispute, the Sahara spokesperson denied any such offer being made by Jet.
A Jet spokesperson meanwhile declined to comment.
The two companies are fighting a case in the Bombay High Court on the issue and the next hearing is to be held on Thursday.
Sahara Commercial Corporation maintains that Naresh Goyal-led airline was liable to pay Rs 2,000 crore for the deal instead of the renegotiated amount of Rs 1,450 crore agreed between them.
30/07/09 Press Trust of India/Hindustan Times

Jet Airways Konnect introduces new flights with deployment of two more B737

Mumbai: Jet Airways Konnect will extend its services on board two additional state-of-the-art, next generation Boeing 737 aircraft, to include sectors connecting Mumbai with Rajkot and Bengaluru with daily flights, commencing July 7th, 2009.
Again, effective July 11th, 2009, Jet Airways Konnect will offer similar services from Delhi to Indore and Bhopal, as also between Mumbai and Delhi and, Indore and Bhopal, with daily flights.
These 2 additional 135-seater aircraft have been specially configured to offer Jet Airways Konnect’s popular all–economy no frills service.
The deployment of these two Boeing 737-700 aircraft will take the tally of aircraft offering the Jet Airways Konnect services, upto 19 aircraft (9 Boeing 737s and 10 ATRs), offering over 125 flights daily as planned.
Jet Airways Konnect flights aim to provide the same operational efficiency and reliability, that Jet Airways is reputed for, thereby offering true value to its guests.
30/06/09 PRESS RELEASE/Jet Airways

Kerala increases flu vigil at airports

Thiruvananthapuram: Kerala, which receives international flights at three airports, has increased vigil after three more passengers who arrived from North America on Monday were quarantined with influenza A (H1N1) symptoms.
In all, about 40 people are learnt to be in quarantine in the state.
A 51-year-old woman and her 16-year-old son, who flew in from the United States, and a 68-year-old woman from Canada, have been quarantined at the sub-district hospital in Perumbavur.
The three passengers were reportedly suffering from cough, cold and fever - all symptoms of the flu.
Two others - an airline ground staff working at the airport, and a seven-year-old girl who reached the state from Canada - are also reportedly in quarantine.
Director of Kerala Health Services Dr K. Shylaja said the health department was closely observing the developments and that all efforts were being taken to prevent spread of the disease, adding that there was no need to panic.
30/06/09 Akhel Mathew/Gulf News, UAE

BJP seeks probe in AI's aircraft purchase prog

Mumbai: Demanding an inquiry into the purchase of 111 new aircraft by the national carrier, Air India, BJP has said the proposal was the root cause of the airline's financial woes.
BJP leader Kirit Somaiya today met the Comptroller and Auditor General of India, Central Vigilance Commissioner, Leader of Opposition in Rajya Sabha Arun Jaitley and Deputy Leader of Opposition in Lok Sabha Sushma Swaraj and expressed concern over the matter.
Somaiya requested protection of the interests of Air India employees and re-evaluation of the Rs 55,000-crore aircraft purchase order.
"The real reason behind the present financial crisis (of AI) is the interest burden, repayment and overhead expenses," Somaiya said in a statement issued here.
BJP held the Civil Aviation Ministry and the UPA Government responsible for the financial turmoil the state-run airline was going through.
01/07/09 Zee News

Six-hour runway closure from today at Chennai

Chennai: The main runway at Chennai Airport will remain closed -11am to 5pm- from Wednesday. A notice to this effect was issued a month ago to all airlines, which were expected to restructure their schedules or use the secondary runway with limited capacity.
About 10 Air India flights and 15 Jet Airways flight have been rescheduled owing to this renovation.
“On long haul flights, carriers cannot take more than 40-45 passengers against a capacity of 145,and even the cargo has to be reduced depending on the passenger load,” said an airline operator.
The runway expansion work is expected to go on till September 15 when only the secondary runway will be operational during the day.

01/07/09 ExpressBuzz

GMR calls off $500-mn QIP issue

Mumbai: GMR Infrastructure, part of the group in the consortium building the New Delhi airport, called off a share sale on Tuesday because of poor investor demand even after slashing the size by four-fifths to $100 million. GMR shares fell 8.8 per cent to Rs 141.65. The GMR withdrawal happened at a time when a number of companies, including GMR, Unitech, HCC and HDIL, had launched on Monday share sales for nearly $2 billion, hoping the stock market rally would have revived investor appetite.
“The management committee of the board of directors of the company have decided to withdraw the QIP in light of existing market conditions,” GMR Infra said in a filing to the Bombay Stock Exchange. The management committee of the board had earlier decided to allot shares on June 29 to qualified institutional buyers (QIBs) pursuant to the shareholders nod earlier this month for raising up to Rs 5,000 crore.
“Nearly half a dozen companies are in the market to raise over $2 billion from big institutional investors. The bunching of issuers also created a problem for GMR. More companies are in the pipeline. So liquidity is somewhat tight,” said a market source
01/07/09 Indian Express

Kingfisher Airlines defers declaration of results

Mumbai: Kingfisher Airlines today said it has deferred declaration of its financial results for the year ended March 31, 2009, in the absence of requisite quorum.
The Chairman of the Audit Committee met with an accident and hence the quorum could not be completed, the private airline said in a statement here.
"The Kingfisher Board met as scheduled today in Mumbai. However, the consideration of the audited financial statements for the year ended March 31, 2009, has been deferred since the Audit Committee meeting could not be held as the quorum requisite was not present,"it said.
01/07/09 PTI/Indopia

Indian arrested from Kathmandu airport

Kathmandu: An Indian man was arrested from Nepal’s sole international airport in Kathmandu Tuesday.
According to police, Anil Kumar Sharma, who checked in at the Tribhuvan International Airport in the morning to catch an Indian Airlines flight to New Delhi, was arrested after security forces found 140 currency notes of the denomination of Rs.1,000 each from his hand bag.
Nepal has banned Rs.1,000 and Rs.500 notes in a bid to crack down on the growing racket in counterfeit Indian currency.
Sharma has been sent to the revenue investigation department for further probe.
Even if the money in his possession is found to be genuine, he still faces a fine and possible imprisonment for violating the law of the land.
Though the ban has been in place for nearly a decade, many Indian travellers are still unaware of it.
30/06/09 IANS/Thaindia.com, Thailand