Mumbai: All is not well between Air India (AI) pilots and those leading its association, the Indian Commercial Pilots Association (ICPA).
Though the ICPA struck a deal with the Air India management to end a threat by pilots to go on an indefinite strike from today, pilots believe the ICPA has not done enough.
Captain V K Bhalla, who is leading the pilots with their demands, has alleged that the top ICPA leadership is a stooge of the Air India management.
"The management did not accept a single demand during its meeting with the ICPA on Sunday. They only said they will pay our dues in installments and did not even specify the time," said an irked Bhalla.
Air India Executive Director Jitendra Bhargava said, "The pilots have decided against going on strike. No decision has been taken on the full reimbursement of allowances."
ICPA president Shailendra Singh said, "We did not attend the meeting to put forth the specific demands of the executive pilots.
If they feel they are not satisfied with the developments, they can still go on a strike. We are not concerned with what Bhalla has to say on the issue."
12/01/09 Bipin Kumar Singh/MiD DAY
Tuesday, December 01, 2009
AI pilot accuses guild of foul play
Indian Oil reduces ATF prices by 1.1%
New Delhi: Indian Oil Corp. Ltd, the nation’s largest refiner, will decrease jet fuel prices by 1.1% starting Tuesday, a company official said. The price in Mumbai, home to the country’s busiest airport, was reduced to Rs41,237 a kl from Rs41,710.28, the official said in a text message.
30/11/09 Bloomberg/Live Mint
Rising Re to help airlines prune operational costs
Mumbai: The firming up of the rupee against the greenback is likely to lower the operating costs for airlines in India, which pay up to 60% of their expenses in dollar denominations. The airlines industry, which had been badly hit by the global meltdown, is expected to post a net loss of Rs 10,000 crore in 2009-10.
Airlines pay their expatriate staff, aircraft lease rentals and fuel bills in dollar denominations, apart from paying interest on foreign currency loans against purchase of aircraft. The rupee, at 46.53 to a dollar on Monday, has seen a surge of almost 15% from its record low of 52.20 in March.
Of the total transactions for Indian carriers in dollar terms, 40% is in the form of fuel bills and 20% is accounted for by salaries to expatriate staff, lease rentals and loan repayments. The remaining 40% is the revenue from overseas offices in various countries. Raj Halve, principal consultant Samara Capital, says, “If the trend continues, the operating costs of airlines will be lower in the medium term. Airlines will now have to pay less for their lease rentals, overseas administration offices and salaries to expatriate staff. ....”
M Thiagarajan, managing director of south India-based Paramount Airways told FE, “..There will also be a saving on account of capital cost for loans taken by airlines. Nevertheless, the purchase of aircraft and its maintenance is in dollar denominations.”
For the country’s largest private carrier, Jet Airways, this comes as a boon since it has a huge international network, with over 50% of its revenues from overseas. Analysts say that due to the Indian currency growing in strength, Jet’s forex net worth would be attractive.
01/12/09 Shaheen Mansuri/Financial Express
British Airways Will Repay Fliers for Erroneous Ad
British Airways agreed to pay cancellation penalties and other expenses for about 2,200 consumers who responded to an erroneous offer of $40 fares between the U.S. and India, the Transportation Department said.
The fare, which didn’t include taxes and fees, was posted on British Airways’ Web site at about 6:30 p.m. Oct. 2 and was removed within minutes, the department said in a statement today in Washington. The ad remained on other online travel sites for about two hours, the agency said.
The department’s Aviation Enforcement Office had been looking into the matter and reached an agreement with the U.K.- based carrier. The lowest fare prior to the mistaken ad was more than $750 before taxes, the department said.
The faulty fare was the result of a “human typing error,” said John Lampl, a British Airways spokesman. He said he didn’t know how much the reimbursements will cost the carrier.
Bill Mosley, a Transportation Department spokesman, also said he didn’t know what the reimbursements would cost.
British Airways said in a statement on its Web site that it “sincerely apologizes” to customers who booked flights Oct. 2 and then were notified their flights were canceled because of the error.
30/11/09 John Hughes/Bloomberg
Air India relents, allows staff to change seats from economy
New Delhi: As a peace offering to its warring employees, the Air India management has reversed a May order that forced employees all the way up to the chairman to fly economy class.
The embattled national carrier, operated by National Aviation Co. of India Ltd, is weighed down by losses of Rs5,548 crore in 2008-09 and a staggering Rs15,241 crore of debt. The state-owned carrier is expected to receive an initial Rs400 crore in equity infusion from the government if it cuts costs. In one of its early cost-cutting moves, the airline barred business and first-class travel for its senior management staff, provoking an employee backlash.
On 27 November, Air India executive director (headquarters) V. Srikrishna issued a circular stating that employees from deputy general manager or higher would be allowed to travel at least business class on duty and on vacation, but with caveats.
Till May, for example, senior executives at the level of director or higher were allowed to fly first class, but can now travel only business. Their business-class travel has also been capped to not more than 25% of the total business class seats. For personal travel, seats would be allotted subject to availability.
Only Air India’s chairman and managing director would be allowed to fly first class both on duty and on personal travel. Retired chairmen of Air India and the erstwhile Indian Airlines, their immediate family members, and retired officials of the rank of deputy general managers or higher can travel only business class, subject to availability.
30/11/09 Tarun Shukla/Live Mint
Dubai crisis: Opportunity for Indian aviation sector
Hyderabad: The financial crisis in Dubai can be an opportunity for Indian Aviation Industry, Director General Airports Council International Angela Gittens said.
Dubai crisis may go in many directions. It may affect the economic front depending on the tie-ups with India. However, it can provide an opportunity to enhance and provide the aviation capacity outside the country, Gittens told PTI.
She suggested that India should take two steps forward when Dubai one step backward to have better aviation tie-ups. The ACI is predicting a two per cent rise in global aviation revenues by 2011 mostly complemented by India, China and Brazil.
USA and European countries are still flat. Rebound will start only in 2010, the ACI head said, adding this particular recession took longer time to subdue.
As much as USD 12 billion will be required for the Indian aviation industry to meet the demand by 2030, when the demand is going to double.
30/11/09 PTI/Economic Times
Work at Mumbai airport puts airlines in the red
Mumbai: The inconvenience created by the infrastructure work at Mumbai airport is making the airlines lose money both on ground and in the air. Since the runway repair work started in October, the airlines have been severely affected. While the ground congestion is delaying departure of flights by an hour thereby affecting their on time performance (OTP), arriving flights held up in the air for 15-20 minutes during peak hours leads to burning of fuel up to Rs1 lakh a day.
The closure of secondary runway 14-32 and lack of enough taxiways have brought down the airlines' OTP in the past month.
"Especially in the evenings between 9.30pm to 11.30pm, the arriving flights have to hold up in the sky for 15-20 minutes. At times it extends to even 45 minutes. While a small aircraft like Airbus 320 burns fuel worth Rs40,000-Rs60,000 in 20 minutes, bigger aircrafts like Boeing 777 or 747 waste Rs1 lakh worth of fuel," said a senior commander from Jet Airways.
01/11/09 Naveeta Singh/Daily News & Analysis
SC notice to Centre, AAI on airport development fee
New Delhi: The Supreme Court today issued a notice to the Centre and others asking them to explain why they should be allowed to charge the development fee at the Mumbai airport from passengers.
However, the Court refused to stay the order of the Delhi High Court that upheld such levy, saying "we are not inclined to stay it... No airport could be developed if they don't have funds."
A Bench headed by Chief Justice K G Balakrishnan isued the notice to the Ministry of Civil Aviation, Airports Authority of India (AAI) and the Mumbai International Airport Ltd (MIAL) on a petition filed by consumer organisation Consumer Online Foundation.
30/11/09 Press Trust of India
Bomb scare in flight; hoax caller sent to 14 days JC
New Delhi: A Delhi Court today remanded to fourteen days judicial custody a man who was arrested on the charge of making a hoax phone call regarding bomb threat to a Hyderabad-bound Indigo Airlines flight.
Metropolitan Magistrate Vishal Gogne sent Mubarak Ali, who allegedly made the hoax call to the Indigo flight at IGI airport here, to judicial custody till December 14 as the police did not seek his custodial interrogation.
Mubarak, 33, who runs a shop of computer hardwares, was arrested from Bhagirath Vihar in East Delhi yesterday.
30/11/09 Press Trust of India
China Airlines flights to Rome to transit via New Delhi
Taipei: Taipei-based China Airlines announced Monday that from Dec. 1, its flights to Rome will transit via the Indian city of Delhi rather than the Thai city of Bangkok.
CAL, which operates three flights per week to Rome, will become the only airline in the world to fly the route via Delhi, a move that is expected to cut the flight time by an hour, the company said.
The twice-weekly Taipei-Bangkok-Rome flights will be replaced by three Taipei-Delhi-Rome flights per week, according to CAL.
Flights will depart from Taiwan Taoyuan International Airport at 8:25 a.m. every Tuesday, Thursday and Sunday, reaching Delhi at 1: 10 p.m. for a 75 minute transit stop before arriving in Rome at 6: 40 p.m. the same day.
The return flights will leave at 10: 40 p.m. from Rome and reach Delhi at 10: 55 a.m. the next day for a 75 minute transit stop before arriving in Taiwan at 8:20 p.m. that day.
30/11/09 AsiaPulse via COMTEX/Trading Markets
Sri Lankans using India to flee overseas illegally
DecNew Delhi: The decimation of the LTTE in Sri Lanka has given a big push to illegal immigration involving Sri Lankan Tamils in India. There is a sudden spurt in Sri Lankan Tamils illegally crossing over to India to take a flight abroad. Agents have kept apace by doubling fees for passports and visa.
Investigators believe most Sri Lankans trying to cross-over to western shores via India are LTTE cadres or sympathizers. Airport authorities have caught at least 40 Sri Lankan Tamils trying to take such flights from Indian airports.
In a latest case at the Indira Gandhi International (IGI) airport on November 16, Rajan Kumar was stopped from boarding an Air India flight to New York, after the US visa on his passport drew suspicion. The regional passport office in Hyderabad had purportedly issued the passport.
But close scrutiny showed the passport was fake. It would have gone down as another case of illegal immigration had Rajan not told investigators he was a Sri Lankan Tamil who had illegally crossed over to India.
His original name was Sivapalan and apart for his Indian passport, he was also carrying documents to prove his Sri Lankan identity. Sivapalan explained he planned to show his original Sri Lankan documents on reaching America. "He would have claimed to be an LTTE sympathizer and a victim of persecution by Sri Lankan forces," said a source who interrogated Sivapalan. But authorities are undecided on whether Sivapalan was really an LTTE recruit or just trying to get a toe-hold in the US.
30/11/09 Daily News & Analysis/Daily Mirror, Sri Lanka
Sukhoi-30 MKI crashes near Pokhran
New Delhi: Less than a week after president Pratibha Patil took to the skies in one of them, a Sukhoi-30 MKI, India's most advanced fighter aircraft, crashed near Pokhran on Monday evening. Both pilots, however, ejected safely.
The aircraft reportedly developed a technical snag while on a routine sortie and crashed in an open field near Kallaron Ki Dhani, about 5 km from the army's Chandan firing range in Jaisalmer district.
"The plane crashed in an open field, but no one was hurt. An Indian Air Force (IAF) team is examining the crash site," Jaisalmer superintendent of police Vishnukant said.
"One SU-30 MKI aircraft of the IAF crashed south-west of Pokhran" at around 5.30 pm, the air force said in a statement. "The aircraft had taken off from the Jodhpur air base on a routine training sortie [around 4.55 pm]. The pilot and the navigator ejected safely," it said.
The air force said there was "no reported damage to civil life or property". It has ordered a court of inquiry.
This is the second time that the advanced multi-role fighter, which was inducted into the air force in 2002, has crashed. The first crash at Rajmathai village, around 170 km from Jaisalmer, in April was because of the position of the various critical switches of the aircraft. The switches were behind the pilots and they would have to turn them on and off without looking back.
01/12/09 Daily News & Analysis





