New airport on Jaipur-Delhi highway

Jaipur: It's a project that promises to change the fortune of this desert state. Talks are at an advanced stage for a greenfield airport on the Jaipur-Delhi highway. The project is a bid to help decongest the Indira Gandhi International Airport.
According to government sources, "To avoid the congestion at Delhi airport, a proposal was mooted for a second airport. But none of the states, like Uttar Pradesh or Haryana, was able to provide land, as a result, Rajasthan bagged the project."
"As per rules, no airport can come up within a distance of 60 km from Jaipur and 120 km from Delhi. Therefore, the proposed site had to be on the Jaipur-Delhi highway at a place called Shahpura which is about 65 km from Jaipur," he added.
The airport is being promoted by a private player. "Obviously they have the necessary understandings and clearances from the Airport Authority of India and all other departments concerned at the Centre," said officials. A few rounds of talks have been held between the state government and the private party, they added.
If things proceed on the expected lines, the state government will sign the memorandum of understanding with the party soon. The proposed investment for the airport is around of Rs 4,500 crore.
The official said primarily the airport will be used for cargo and chartered flights.
01/09/09 Anindo Dey & Rachna Singh/Times of India

Kingfisher to raise up to Rs 450 crore

Bangalore: Kingfisher Airlines, owned by billionaire Vijay Mallya, has said it intends to raise up to Rs 450 crore through various instruments, including Global Depository Receipts.
A resolution to this effect was passed at a board meeting on Monday. This intent to raise funds comes nearly a month after the company enabled itself to raise up to Rs 500 crore by way of a rights issue of shares.
Kingfisher has been trying to raise funds to reduce its debt burden of Rs 6,000 crore on a base of Rs 270 crore, a leverage of nearly 20 times. To pave the way, it is also seeking approval of shareholders for increase in the authorised share capital from Rs 500 crore to Rs 1,000 crore.
Vijay MallyaMallya has been lobbying with the Union government to allow foreign airlines to invest in the Indian aviation sector. Till that happens, Kingfisher would have to use other financial instruments.
01/09/09 Business Standard

Jet Airways, Kingfisher to raise Rs 2,500 cr

Mumbai: Jet Airways and Kingfisher Airlines will raise $500 million (around Rs 2,500 crore) between them to meet expansion plans and working capital requirements.
Of this, Jet will account for a lion's share with $400 million (Rs 2,000 crore) and will explore various financing options such as QIP, GDRs, ADRs and FCCBs. The company will hold an extraordinary general meeting in Mumbai on September 24 to seek shareholder approval for this move.
The Vijay Mallya-promoted Kingfisher plans to raise $100 million (Rs 500 crore). Earlier in July, the Kingfisher board had already decided to raise Rs 500 crore through a right issue.
01/09/09 Business Line/Sify

Jet Air members to meet Sep 24 to clear fund raising

Mumbai: Jet Airways India on Monday said it will raise $ 400 million through various funds raising routes.
The shareholders of the company would meet on September 24 in order to consider funds raising proposal approved by the board of directors of the company, Jet Airways India said in a filing to the Bombay Stock Exchange (BSE).
The company would raise $ 400 million by private placement of shares with qualified institutional buyers or by Global Depository Receipts (GDRs), American Depository Receipts (ADRs) and Foreign Currency Convertible Bonds (FCCBs), the filing added.
31/08/09 PTI/Business Line

International airlines go regional on cuisines to woo Indians

New Delhi: India is an important market for international airlines, but in these downbeat times, how do they grab footfalls? By tickling taste buds with diverse gastronomical delights. But instead of a general Indian cuisine, specific regional delicacies are being rolled out.
Emirates is the latest to launch region specific cuisine this year through its ‘Journey Through India' campaign; Malaysian Airlines did so in November 2008, after earlier introducing Chinese, Japanese and Western cuisine. Singapore Airlines was among the first to have a blend of northern and southern Indian cuisine in its shahi thali.
It makes sense to go for the Indian palate, say airlines. "Bookings from India have grown by 12-15% over the previous year," says Orhan Abbas, Emirates VP, India and Nepal. For Malaysian Airlines, India is the fifth largest contributor to its revenue and comprises 10% of its network, says Hamid.
These airlines also have priority states. For Singapore Airlines, it is Tamil Nadu, says C W Foo, GM, India, due to the significant growth in passenger traffic from here. Singapore and nearby Malaysia, incidentally, have a sizable Tamilian population.
Interestingly, these airlines aren't just shooting in the dark. Their research has shown that the Indian passenger has unique traits.
Have these offers increased footfalls? An Emirates source claims approval ratings from passengers jumped 5-6 per cent more in January 2009 (when regional cuisines were introduced) as compared to the same period last year.
01/09/09 Shobha John/Times of India

Air Works to service Sukhoi Superjet 100 aircraft

New Delhi: Aircraft repair services provider Air Works has signed a Letter of Intent with Venice-based SuperJet International to become its authorised service partner for the Sukhoi Superjet 100 aircraft in India.
SuperJet International is engaged in marketing, customising and delivery of the Sukhoi Superjet 100 regional jet in various parts of the world.
Under the terms of the agreement, Air Works will perform the maintenance, repair and overhaul (MRO) services for the Sukhoi Superjet 100 aircraft series at its MRO facility in Hosur, near Bangalore, the company said in a statement.
Established in 1951, Air Works is the largest general aviation MRO company in India. It employs over 500 workers across 10 airports in the country.
31/08/09 Press Trust of India/Business Standard

DIAL may hike usage fee as borrowing costs rise

New Delhi: The global financial crisis could well end up raising airport usage charges at Delhi. Even as the GMR-promoted Delhi International Airport (DIAL) races to complete a brand new airport before the scheduled deadline that expires seven months from now, a clutch of foreign and domestic banks that had agreed in December 2007 to finance DIAL’s external commercial borrowing of $350 million are now baulking at the agreed rate of 185 basis points over the London Inter-Bank offered rate (Libor).
While DIAL is exploring alternative options, it is unlikely to get a rate lower than 300 basis points over Libor, raising its cost of capital. Since the airport tariffs are to be fixed taking into account the weighted average cost of capital, a rise in tariffs is on the cards.
DIAL is a special purpose vehicle (SPV) that was formed in 2006 in which GMR Infrastructure own the majority stake. GMR group won the bid in 2006 to modernise the Delhi airport.
DIAL has increased the project cost by Rs 1,250 crore to Rs 10,225 crore from original projection of Rs 8,975 crore, which is funded through equity contribution by all the existing shareholders including Airport Authority of India (AAI) on pro-rata basis.
01/08/09 Arun Kumar/Economic Times

Proceedings over Jet sacking pilots adjourn to Sept 14

Mumbai: Conciliatory proceedings between Jet Airways and its employees union before the Regional Labour Commissioner over sacking of two pilots by the air carrier's management has been adjourned to September 14.
The air carrier's management has been told to submit its position in writing on or before September 7, the Regional Labour Commissioner, Mumbai, told reporters here today.
"..both sides have been advised to comply with the regulations of Industrial Disputes Act, 1947," the Commissioner said.
Under these provisions, both parties are under legal obligations and the union is under obligation not to proceed on strike during the process of conciliatory proceedings, he said.
The National Aviator's Guild (NAG), which represents Jet Airways pilots, said that it stood by its stand to go on a strike from September 7 to protest the Jet management sacking two pilots.
31/08/09 PTI/Economic Times

No violation of Indian airspace: China

Beijing: China on Tuesday said its border patrols are conducted strictly “in accordance with law”. Jiang Yu, spokeswoman for the Chinese foreign ministry, said on Tuesday in reply to a question about Chinese helicopters violating Indian air space.
Saying that she had taken note of Indian media reports on the issue, Jiang said Chinese military never crossed into the air space of other countries. She also pooh-poohed Indian media reports which talked about military firing into India from across the border with China.
Jiang described the reports as “groundless” and said that the two countries have arrived at a consensus about making efforts to safeguard peace and tranquility on the border region while the border issue is being negotiated.
01/09/09 Saibal Dasgupta/Times of India

Chinese chopper violated Indian airspace: Army

New Delhi: Indian Army Chief of Staff General Deepak Kapoor on Monday admitted that Chinese helicopters had violated the Indian airspace along the Line of Actual Control in Leh.
"There has been one incursion of a Chinese helicopter sometime back. At times this can also happen due to navigation error but this is not to justify that the incursion took place. It has happened and that has been taken up in the border personnel meeting with the Chinese," General Kapoor said in New Delhi.
According to reports at least two violations by Chinese helicopters had taken place in the past few months.
Two Chinese helicopters reportedly violated the Indian airspace recently in Ladakh area of Leh. The helicopters air-dropped some canned food in a barren land at Chumar, northeast of Leh, along the border on June 21.
The MI series helicopters were reported to the nearby defence post by local residents who live along the Pangong Lake.
The incursions prompted the Army Aviation Corps to scramble its own aircraft, but the Chinese helicopters had retreated behind their lines by the time.
Moreover it is not only the aggression shown by Chinese forces that is worrying the Indian defence establishment.
31/08/09 CNN-IBN

Air India plane suffers technical snag; grounded for repairing

Raipur: An Air India aircraft today suffered a snag in its hydraulic system and was grounded for repairs at the airport here.
The pilot of the Airbus A-320, which flew in from Delhi, detected a leak in its hydraulic system just before taxiing for take-off for Nagpur, an airport official said.
The official maintained that the flight, IC-869, did not land under emergency conditions as the snag was detected when it was on the ground.
The hydraulic leak was detected after the plane landed at the airport at 0730 hrs, delaying its scheduled departure for Nagpur at 0850 hours.
31/08/09 PTI/Indopia

LGBI airport 6th busiest in country

Guwahati: At a time when global recession takes its toll on the Indian aviation industry, Lokapriya Gopinath Bardoloi International Airport here has been able to maintain steady growth. This is now one of the 6th busiest airports in the country in terms of passengers volume. The airport accommodates about 84 scheduled movements daily. The figure of course shoots up sometimes depending on the flow of passengers. All the major private airliners have already expanded their wings to the airport to harness the North East market.
The airport handles nearly 8,000 passengers daily. But, in the peak season the figure goes up to over 10,000. In the month of April, it alone handled nearly 1.12 lakh passengers.
In view of growing traffic, sometimes aircrafts have to remain in mid-air for a long time due to lack of parking space. Increased passengers in the airport are apparently due to its proper connectivity. The airport is now connected to all major locations in the country probably due to which more and more people opt to fly from LGBI.
To know more about the growing air traffic, this correspondent contacted the Airports Authority of India (AAI), Guwahati. The sources of the AAI, said that it has now become a major airport in the country for its proper connectivity.
Elaborating more on the new plan, they informed that the existing runway would be increased by another 360 metres to accommodate bigger aircraft.
31/08/09 Surajit Khaund/Assam Tribune

Rohan Siriwardene appointed Kingfisher Airlines Sri Lanka, Maldives Manager

Kingfisher Airlines, India’s only five star airline, yesterday announced the appointment of Rohan Siriwardene as Area Manager for Kingfisher Airlines for Sri Lanka and the Maldives. He is expected to lead sales and market development efforts in the region for the airline.
Considering the Sri Lankan market to be of importance to the airline, the appointment of Mr. Siriwardene to this position was commended by the airline’s Vice President – Global Sales Siva Ramachandran to be the “ideal choice”.
Kingfisher Airlines commenced flights from India to Sri Lanka in January 2009 and since then has gone on to launch four new international routes with the launch of flights from Mumbai to London Heathrow, Bangalore to Dubai, Kolkata to Dhaka and most recently, from Kolkota to Bangkok.
The Indian airline announced its roadmap for the next phase of its international routes and detailed plans for 8 new overseas routes.
01/09/09 Daily Mirror, Sri Lanka

Pay up, MMRDA tells Jet, Starlite

Mumbai: The Mumbai Metropolitan Region Development Authority (MMRDA) recently gave Jet Airways and Starlite Systems time till September-end to pay their dues amounting to over Rs1,300 crore, for the three plots they purchased at Bandra-Kurla Complex (BKC).
Both Starlite and Jet have sought a staggered payment option from MMRDA for their bid amounts, citing the slowdown in the Mumbai realty market. After a long wait, MMRDA granted the extension till September 30. The authority has extended the date four times since 2008.
Senior MMRDA officials said that if the two companies fail to meet this deadline, they would forfeit their security deposits. In March 2008, Jet Airways was the sole and winning bidder for a 65,348 sq ft (1.5 acre) commercial plot at BKC at Rs826 crore.
01/09/09 Rajshri Mehta/Daily News & Analysis