monthly newsletter july, 2012aircraft at delhi’s indira gandhi international airport by august so...
TRANSCRIPT
ASSOCIATION OF PRIVATE AIRPORT
OPERATORS
Monthly Newsletter July, 2012
APAO Members:
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CONTENTS
1. Aviation Sector ............................................................................................. 2
2. Airport- AAI Managed Airports…………………………………………………………………12
2.1 Bangalore International Airport Limited……………………………………………..12
2.2 Cochin International Airport Limited ................................................... 13
2.3 Delhi International Airport Limited……………………………………………………..14
2.4 GMR Hyderabad International Airport Limited……………………………………15
2.5 Mumbai International Airport Limited………………………………………………..16
3. Airlines………………………………………………………………………………………………………18
3.1 Air India………………………………………………………………………………………………18
3.2 Kingfisher Airlines……………………………………………………………………………….20
3.3 SpiceJet………………………………………………………………………………………………20
3.4 Jet Airways…………………………………………………………………………………………21
3.5 IndiGo………………………………………………………………………………………………..22
3.6 GoAir………………………………………………………………………………………………….22
3.7 International Airlines………………………………………………………………………….22
4. Cargo ……………..………………………………………………………………………………………..24
5. Traffic…….…………………………………………………………………………………………………25
6. Source………………………………………………………………………………………………………27
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1. AVIATION SECTOR
1. Ministry of Civil Aviation has hit back at the Comptroller and Auditor-General (CAG)
saying that the report holding that the government would suffer a loss of Rs 1.63 lakh
crore by leasing out land to Delhi International Airport Limited (DIAL) at concessional
rates is “grossly misleading”.
2. Appointments Committee of the Cabinet on 3rd July had approved the extension of
additional charge of the post of Director General at Directorate General of Civil Aviation
to Shri E.K. Bharat Bhushan who at that time was Additional Secretary and Financial
Adviser in the Ministry of Civil Aviation till the year end. However on 10th July, Shri
E.K. Bharat Bhushan was removed as head of the Directorate General of Civil Aviation
and the charge was then handed over temporarily to Prashant Narain Sukul, joint
secretary in the Ministry of Civil Aviation. Shri E.K. Bharat Bhushan has been moved to
the Steel Ministry as additional secretary and financial advisor while his counterpart at
the Steel Ministry, S Machendranathan, will take up the responsibilities at the Ministry of
Civil Aviation.
3. Mr. Arun Mishra has been appointed as Director General of Civil Aviation,
succeeding E.K. Bharat Bhushan. Mr. Mishra took the charge as on 26th
July 2012 and
said that his main priority was to improve safety culture in airlines and airports and to
make the pilot licensing system more stringent and to check fraudulent practices.
4. Mr. K N Srivastava, Karnataka cadre IAS officer has been appointed as Secretary
in the Ministry of Civil Aviation from 1st August 2012.
5. Union Government on 3rd July informed Delhi High Court that the recommendation for
constituting an appellate body of the Airport Economic Regulatory Authority (AERAAT)
was with the Chief Justice of India (CJI) and that a decision was likely to be taken very
soon.
6. Federation of Indian Airlines (FIA) comprising of various airlines on 3
rd July approached
the Delhi high court seeking a stay on the Airport Economic Regulatory Authority of
India’s permission to DIAL for a three-fold hike in aeronautical tariff for IGI Airport.
7. On 3
rd July, the then Karnataka Chief Minister Mr. D.V. Sadananda Gowda had appealed
to Defence Minister Mr. A.K. Anthony to reconsider the decision of moving Asia’s
prestigious air show, Aero India, out of Bengaluru saying that the issue of air space
management can be sorted out through proper coordination planning. Bangalore
International Airport had taken up the issue of airspace management and the Ministry of
Civil Aviation had approached Ministry of Defence to consider moving the show to a
location where there is greater free space available. On 4th
July, Defence Minister A.K.
Anthony assured the Chief Minister that Aero India-2013 will not be shifted out of
Bangalore.
8. Boeing 2012 Current Market Outlook predicts a $4.5 trillion market for 34,000 new
airplanes over the next 20 years as the current world fleet doubles in size. The market for
new airplanes is set to become more geographically balanced in the two decades. Asia-
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Pacific region will be the biggest market for new planes, with a potential for 12,030 new
planes there through 2031.The next biggest market is Europe with 7,760 and North
America with 7,290.
9. Rolls Royce in its market outlook 2012 has reported that India and China would be
among countries which would constitute the largest market for aircraft engines and their
after sales services totaling $1,700 billion over the next two decades. Delivery of
1,49,000 engines have been forecasted over the next 20 years to power 68,000 new
aircraft and business jets. Engine themselves would be worth $ 975 billion and $700
billion for after-market services. The Study also said that India and China domestic
aviation market would grow at 9.8% and 7.9% per annum respectively. Europe and North
America would grow by 2.5% per annum.
10. Bird Strike Research Group of India is using airports at Mysore, Hubli and Mangalore for
its study so as to discover methods to prevent bird strikes under a variety of situations.
11. Airports Authority of India (AAI) and private operators have approached Ministry of
Civil Aviation to open escrow accounts where the airport user charges paid by passengers
under various names are deposited straightway at the time of ticket booking itself. As the
airlines collect the charges from the passengers at the time of booking tickets on behalf of
airports and are allegedly not paid to the airports.
12. Government has proposed to replace the existing Aircraft Act of 1934 which does not
cover the critical issues such as viability and security, and has been severely criticized in
safety audits conducted by global aviation bodies, with a new Civil Aviation Act of 2012.
13. Travel agents have decided to levy service fee on full-service carriers like Air India and
Jet Airways from July 16th after the carriers reduced their commission form 3% to 1%.
The domestic fee has been proposed at Rs 225 and Rs 325 for an economy and business
class ticked respectively. The international routes have been divided into the neighboring
area that range from Dubai to Singapore with the fee between Rs 775 and Rs 3,250 per
ticket. The fee for distant places like Europe, America and Australia will be between Rs
1,625 and Rs 6,500.
14. IATA Agent’s Association of India is seeking withdrawal of a transaction fees scheme
announced by Air India and restoration of the current 3% commission. Travel Agents
contribute more than 75% of Air India’s passenger load, both in the domestic and
international sectors.
15. Airport Authority of India will upgrade the system of pre-departure clearances given to
aircraft at Delhi’s Indira Gandhi International Airport by August so as to make flights at
the Delhi airport take off in a much smoother and faster manner.
16. Labour Ministry is rethinking classification of ‘workmen’ to exclude high paying jobs
like airline pilots.
17. Airports Authority of India had identified 101 obstructions on either side of the runway at
Patna Airport which makes the airport unfit for the operation of bigger aircraft like
Airbus 320 and Boeing 737 and had given the deadline of June 30 to Bihar Government
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to remove the obstacles or face closure of the airport. Directorate General of Civil
Aviation has termed Patna Airport ‘unsafe’ and has asked Airports Authority of India to
reduce the available runway length and mark it accordingly by July 11th
. This means that
Airbus A320 and Boeing 737 aircraft which currently fly would no longer be able to
operate to Patna Airport and only smaller turboprops like ATR’s would be able to land
and takeoff from the airport – that too with severe load penalty or partially filled.
Airports Authority of India (AAI) has given its nod to set up the new airport in Nalanda
instead of Patna after the existing Jayaprakash Narayan International Airport was
declared ‘dangerous’.
18. An International Airport is set to come up between Agra and Mathura with a view to
catering needs of tourists. The airport is planned on a public private partnership and is
likely to be completed by 2017.
19. Ghaziabad Development Authority (GDA) and Pawan Hans official are vetting possible
sites in NCR for heli-link services for commercial flights to Lucknow and Agra as well as
for pilgrims en route Varanasi and Vrindavan.
20. Airports Authority of India is conferred with the prestigious Golden Peacock Eco-
Innovation Award on 7th
July 2012 for promoting environment conservation practices.
The Authority uses eco-friendly recycled paper within the organization and has its own
paper recycling unit. The Golden Peacock Eco-Innovation Award is given every year to
the most innovative product developed as determined by satisfaction of customer’s long-
term needs and aspirations in a most effective manner.
21. Ministry of Civil Aviation has moved a proposal to reconstitute the Civil Aviation Safety
Advisory Council. The extended term of the 28-member council ended on May 27th
2012.
The council is mandated to strengthen aviation safety environment.
22. Union Cabinet is likely to pass a resolution endorsing the fact that Indian airliners would
not share their specific carbon emission data with European Union (EU) authorities.
23. A survey conducted by Airports Council International (ACI) has adjudged Jaipur Airport
as number one among the 126 airports run by the Airports Authority of India (AAI)
including Delhi Airport, Mumbai Airport, Kolkata Airport and Chennai Airport. The
survey was based on 33 parameters including airport safety and security, immigration and
customs, cleanliness, runways, facility of parking and catering etc.
24. Appointments Committee of the Cabinet has strongly objected to the Ministry of Civil
Aviation giving additional charge of Chairman and Managing Director (CMD) of Pawan
Hans Helicopters Limited (PHHL) to Joint DG in DGCA Anil Srivastava, arguing that a
regulator cannot be an operator in the same sector.
25. Director General of Civil Aviation held a meeting with CEOs and representatives of the
Airlines on July 13th
to discuss various issues faced by the industry. The Director General
asked the airlines to prominently display and include in its tariff sheets the charges for
providing conveniences such as online bookings or printing of tickets, if levied by them,
this came in the wake of complaints that some airlines were charging Rs 50 for a ticket
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printout at the airport counter. The Director General also asked the airline to strictly
adhere to the prescribed safety standards and keep a close watch on security issues.
26. Online travel agency Yatra Online plans to go for a franchise model and have 100 offline
stores by March 2013. At present the travel agency have 40 company owned and
operated stores.
27. The Federation of Indian Chambers of Commerce and Industry – Tamil Nadu State
Council (FICCI-TNSC) has urged the State government to come out with suitable policy
to expedite the creation of aerospace cluster that was announced in March 2012. FICCI-
TNSC has suggested four places – Chennai, Sriperumbudur, Hosur and Tiruchi – for
creation of aero clusters due to its unique inherent eco-system built over the years.
28. The government has given more time to 33 special economic zone developers including
GMR Hyderabad International Airport Ltd. to execute their projects.
29. DGCA has done a study of airfares and has concluded that the airfare offered by various
domestic airlines on different sectors remained within the fare bands available on their
respective websites.
30. A study done by CAPA has stated that over the next 10 years, all six metros including
Bangalore, Chennai, Delhi, Hyderabad, Kolkata and Mumbai are expected to have
provisioned for a second airport and Mumbai will need to start preparing for a third,
based on current growth estimates. The airport sector is expected to see a further
investment of $30 billion which will consist of upgrade of existing airports, provisioning
for second airports at each of the metros and Greenfield airport construction.
31. InterGlobe Enterprises is planning to set up a retail chain across airports, metro and train
stations in India in collaboration with Dufry International AG. The chain will be branded
‘Hudson News Cafe’ through their joint venture InterGlobe Retail (P) Ltd.
32. A Parliamentary Committee meeting was held on 17th July and was attended by
Members of Parliamentary Consultative Committee of Ministry of Civil Aviation and
senior officers of Civil Aviation Ministry and DGCA. The parliamentary committee has
discussed the following issues:
a) A bill to create a Civil Aviation Authority to replace the Directorate General of Civil
Aviation (DGCA) would likely be introduced in the winter session of parliament. The
new authority is being proposed to strengthen the regulator by giving it adequate
financial and administrative authority and address current constraints in recruitment
and retention of technical manpower.
b) A new policy in the form of Route Dispersal Guidelines is under consideration of the
Central Government in line with its plan to provide air connectivity to the country’s
remote and interior areas.
c) A proposal to restructure the Bureau of Civil Aviation Security (BCAS) and to
constitute a dedicated security force.
d) Ministry of Civil Aviation is also in the process of enhancing the present operations
of helicopters and construction of heliports at various places to improve the
connectivity of smaller places, including places of religious and tourist importance
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with bigger cities. The Ministry would also soon modify guidelines for acquisition of
aircrafts so that Indian carriers become bound to acquire smaller aircrafts needed for
providing connectivity to these smaller cities.
e) Ministry of Civil Aviation has initiated action to develop India as an international hub
for the passengers, which includes revisiting the policy regarding bilateral air service
agreements with different countries and also rationalization of all bilaterals and traffic
entitlements on international routes to Indian carriers and rationalization of traffic on
domestic routes.
f) Ministry of Civil Aviation also proposed to set up a National Aviation University, as
a measure of skill augmentation and to produce the next generation of aviation
professional. The National Aviation University is aimed at creation of aviation
training hub in the country to meet the requirements of other countries in the region.
33. Airports Authority of India (AAI) and Indian Space Research Organisation (ISRO) have
jointly taken up the Rs 774 crore project GAGAN (GPS Aided Geo Augmented
Navigation) has commenced the process of Final System Acceptance Test (FSAT). The
objective of FSAT is to evaluate the system performance and its critical parameters in the
integrated live environment using the satellite signals and ground based systems on
integrity, accuracy, continuity and availability for aviation use. GAGAN is expected to be
ready for operation and certification by June 2013.
34. The cabinet is likely to clear by July end a compensation package agreed by Air India
and Boeing over delayed deliveries of Dreamliners.
35. Minster of Civil Aviation informed that the government is looking at allowing foreign
airlines to invest in domestic carriers but there would be no change in FDI cap of 49%.
36. Corporate Affairs Ministry has asked the Competition Commission of India (CCI) to
probe the recent rise in air fares for possible cartelization by airlines. Ministry has noted
the sudden hike in air ticket rates in the last 4-8 weeks and has transferred the case to
Competition Commission of India (CCI).
37. Minister of Civil Aviation Shri Ajit Singh has ruled out the bailout of Kingfisher
Airlines.
38. Tata Consultancy Services has signed a multi-year agreement with Scandinavian Airlines
(SAS) for providing its finance and accounting F&A platform to the air carrier.
39. Uttar Pradesh Government will soon undertake construction of an international airport at
the Buddhist pilgrimage town of Kushinagar. The project is proposed to be built on the
public-private partnership model at an estimates cost of Rs 350 crore. The existing air
strip in Kushinagar would be upgraded to an international airport. Around 615 acre has
been acquired from the Civil Aviation Department and the project consultant has sought
expression of interest from developers.
40. Gujarat Government has selected Ventura Aviation and Deccan Charters for providing
onshore services and Meher Air Service for providing offshore service. The government
has identified 5 circuits and 11 airstrips and will now decide on allotment of routes to
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these companies. Gujarat registers air cargo traffic growth of 19% in fiscal 2011-12
compared to the growth of 10% in shipping and 9% in railways.
41. Prime Minister Office (PMO) has called for a high level meeting to discuss aviation
turbine fuel. The meeting will also assess the role of state-run oil companies which
currently have a monopoly on supplying ATF to all airports barring Delhi, Hyderabad
and Bangalore.
42. The proposed Aranmula Airport, Kerala would be presented at the forthcoming
‘Emerging Kerala’ global investor meet in September. The KGS Aranmula International
Airport project has an outlay of Rs 2,000 crore with a 1:1 debt-equity ratio. The first
phase of the project is expected to cost Rs 750 crore. The project has Malaysia Airports
as its technical and strategic partner.
43. Indian Government is contemplating the proposal to allow airlines form the Association
of South East Asian Nations (Asean) to initially operate unlimited flights between their
capitals and New Delhi. The exemption eventually could be extended to flights to cities
including Mumbai, Chennai and Kolkata. The acceptance of this proposal will update the
2003 India-Asean open sky agreement that allows carriers to operate daily flights to
various metros.
44. In order to reduce the Haj Subsidy, Union Cabinet has cleared a proposal of Ministry of
Civil Aviation for the increase in fare to be paid by each Haj pilgrim from the current Rs
16,000 to Rs 20,000 from 2012 onwards.
45. Minister of Civil Aviation on 21st July said that the newly constructed Chennai Airport
would be partly privatised and that a similar move will be effected for Kolkata Airport as
well. Airports Authority of India (AAI) is not in favour of handling over the modernised
Chennai and Kolkata airports to private players from the public sector because these are
the two largest revenue earning airports.
46. Centre of Asia Pacific Aviation (CAPA) has said that India could face the possibility of
downgrading its aviation safety by the US if it did not take urgent steps to strengthen
institutions like the DGCA to meet challenges of fast-growing air traffic.
47. Minister of Civil Aviation on 21st July said that the talks are on with the Planning
Commission for an allocation of Rs 65-75,000 crore for aviation which will be used for
the second and third tier cities. Smaller airports would not only contribute significantly to
the GDP but also increase development in towns.
48. Aircraft manufacturers are now working on a system that will be installed in the aircraft
to scare off the avians. Airlines in India have lost about Rs 18 crore in 2011 due to bird-
hits and incidents of runway incursions by stray animals.
49. Ministry of Civil Aviation has sent a proposal to the DGCA to look into the possibility of
importing aircrafts older than 15 years. If allowed, it would help the airlines to buy
comparatively cheaper planes or even tie-up with international airlines and get planes at
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reduced costs. The fear is that the older planes will be less fuel efficient which will add to
the cost of running the airline and will increase the burden on the DGCA to approve and
certify every aircraft.
50. State-owned Pawan Hans Helicopters Ltd has resumed its services form 26th
July in the
mountainous Meghalaya after a gap of 15 months.
51. Supreme Court on 23rd
July reduced the government’s discretionary quota seats for Haj
pilgrims to 300 from 5,050 seats proposed. A bench of Chief Justice has limited the
number of seats to be allocated under the discretionary quota by the president to 100,
vice-president to 75, External Affairs Minister to 50 and Haj Committee of India to 200
seats. Supreme court was informed that 11,000 seats have been reserved under
government quota to be allocated for Haj 2012 but 5,050 were to be kept in
“discretionary” category.
52. Kerala Government has requested the Centre to relax norms to enable the state to launch
its own airline ‘Air Kerala’ in order to provide qualitative travel facilities to Keralites in
Gulf countries. The airline will follow the same model which was adopted in forming
Cochin International Airport, the first airport in the country that was constructed with the
private participation outside the ambit of Airports Authority of India.
53. Central Government has informed Delhi High Court on 24th
July that it has already
started the process to revive the defunct Airports Economic Regulatory Authority
Appellate Tribunal (AERAAT).
54. International Air Transport Association President Tony Tyler in his keynote address to
the Confederation of Indian Industry (CII) on 25th July mentioned that the “India’s
aviation is in a multifaceted crisis,” severely impacted by high costs, exorbitant taxes and
insufficient infrastructure and asked India for action on reducing tax, ensuring capacity
and keeping costs in check for the aviation industry.
He mentioned that the under-pricing of tickets by Air India was adversely impacting the
market and that the government’s long-term financial aid has not rehabilitated the
business at AI and was rather having destructive impact on the other airlines.
High Costs: The high cost of doing aviation business in India is squeezing the lifeblood
out of the airline sector. He mentioned that the Infrastructure costs and taxes need urgent
attention.
Airport Costs: He said that the India’s Airports are becoming increasingly expensive.
Airports Economic Regulatory Authority (AERA) has recently approved a 346% increase
in charges at Delhi Airport effective from May 2012 which will add over $400 million in
operating costs for airlines providing connectivity to India through Delhi. An increase of
this magnitude will impact travel demand by 5-7%. He further added that to operate
Delhi Airport, DIAL pays 46% of top line revenue to the Airports Authority of India
(AAI) as a concession fee, much of which is used to subsidize other public sector
Airports which is in contravention of international standards, distorts competition and
compromises Delhi’s cost competitiveness. He urged the government to initiate
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deliberations on utilizing the 46% concession fee to offset the increase in aeronautical
charges and the cost for passengers as this could be the basis for a way forward that
protects the interests of DIAL, its airline customers, the fare-paying public, and the
economy and could be a workable solution to avoid Mumbai, with a similar concession
structure, falling into the same dire situation.
Taxation: Ministry of Finance imposes a service tax on air tickets, landing and
navigation charges which contravenes International Civil Aviation Organization (ICAO)
policies. India’s airlines are also taxed on domestic fuel that can add an additional 30% to
the fuel bill. On top of that is an excise duty of 8.2%. As a result, fuel is about 45% of
total operating costs for Indian carriers, compared to a global average of 33%. He said
that taxes may provide short-term gain for finance ministries at various levels of
government but they are compromising the initiatives and strategic priorities of other
ministries. India’s Commerce Ministry wants to increase India’s exports to $500 billion
by 2013-14—double the 2010-11 level. The Tourism Ministry is targeting 10 million
tourists by 2017 nearly double the 5.7 million arrivals expected this year. “Reducing the
tax burden on connectivity will be a critical element of success for both these efforts with
more competitive business travel, more cost-efficient shipping and a more inviting
welcome for 90% of international tourists who arrive by air.
55. Government is planning to set up a facility to be separate from the current (tariff analysis
unit) division of the Directorate General of Civil Aviation (DGCA) to monitor domestic
air fares. The proposal is aimed at ensuring greater transparency in the pricing of
domestic air tickets.
56. According to a survey by Skyscanner, more than two-thirds or 66% of Indian travellers
have listed airports as the most stressful factor for them while planning a trip, with their
queues and security checks as the number one stress factor. The third most stressful
aspect was the search for cheap flights. The least stressful factors are the finances,
finding accommodation and arranging travel documents.
57. The International Civil Aviation Organization (ICAO) is going to do a safety audit of the
Directorate General of Civil Aviation (DGCA) in December 2012 and examine if it is
effective enough to ensure safe flying in and over India. The ICAO report is then made
public to all countries which then decide whether the examined place is safe to fly to or
not.
58. Reliance Industries Ltd (RIL) is expected to invest close to $1 billion over the next few
years and hire around 1,500 people in its new aerospace division.
59. Haryana Chief Minister Bhupinder Singh Hooda met Union Minister Ajit Singh on 27th
July and urged him to take forward the proposal for building a Greenfield cargo airport
for international operations at Meham in Rohtak district. Mr Hooda informed thate the
proposal has been sent by the State through Haryana State Industrial and Infrastructure
Development Corporation and that an area of about 2,770 acres has already been
identified for the project which will be purchased from private parties.
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60. Airport Authority of India (AAI) will award Rs 314 crore work on the integrated terminal
to be built as part of the new Chandigarh International Airport to Larsen and Toubro
(L&T). The new terminal would come up within two and a half years, paving the way for
handling 25 lakh passengers annually and would come up on an area of 40,000 sq.
metres. The new terminal would be modelled on the Delhi airports T3 terminal. The
terminal would have the facilities to handle 1,100 domestic and 500 international
passengers at a point of time. The terminal would be equipped with 3 aerobridges in the
first stage.
61. Prime Minister Manmohan Singh has approved a detailed roadmap for 7 major
infrastructure projects to revive demand for goods and services as well as to boost
economic growth. In aviation, new airports being built at Navi Mumbai, Mopa in Goa
and Kannur in Kerala are being directly monitored by Prime Minister.
Navi Mumbai Airport – Ministry of Civil Aviation in consultation with Maharashtra
Government will finalise the timelines for bidding by August 15th
. After that the nodal
aviation ministry will seek investment clearances from cabinet committee on investment
headed by prime minister. As per deadlines set by PMO, all airport-related contracts will
have to be awarded by end of 2012.
Mopa airport, Goa – A steering committee led by state chief minister is acquiring land.
The PMO has set March 31, 2013 as the cut off time for awarding the commercial
contracts.
Kannur International Airport, Kerala – A state government agency is implementing
the project.
62. Minister of Civil Aviation Shri Ajit Singh has given his assurance to Chief Minister
Prithviraj Chavan that the Centre will take all necessary steps to expedite the construction
of the Navi Mumbai International Airport It was informed that the cabinet committee on
infrastructure will soon meet the state-appointed high-powered committee and they will
discuss the legal aspects including the bid document, contractual liabilities,
infrastructural and environmental issues.
63. Airports Authority of India (AAI) will construct a new Greenfield airport at Holongi,
Itanagar at a cost of Rs 650 crore. The Ministry of Civil Aviation will soon move a note
to the Union Cabinet for approval of the strategic project which will link the border state
with the rest of the country directly.
64. Airports Authority of India (AAI) and RITES Ltd. has signed a MOU for collaboration
for aviation projects both domestic and international.
65. MakeMyTrip has entered into a pact with online payment facilitator PayPal to offer its
overseas customers an additional option to pay for their international flight bookings to
India. This offers customers a trusted and safe payment option.
66. Airports Authority of India (AAI) is keen to commence international cargo handling at
Pune and Bangalore. The Authority has secured land near Lohegaon airport in Pune to
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enable it to develop a dedicated air cargo facility and will also commission the air cargo
complex at Mangalore Airport by August for the handling of international and domestic
cargo.
67. Airports Authority of India (AAI) will open a direct route between Delhi and Mumbai to
improve fuel efficiency and reduce carbon footprint with the new satellite-based
navigation system, RNAV5. Instead of taking a roundabout route through Ahmedabad,
Jaipur and Udaipur, a flight can now fly directly from Mumbai to Delhi saving time and
fuel. Ahmedabad-Delhi, Baroda-Delhi, Udaipur-Delhi are some other sectors which will
have a straight route.
68. CAPA’s report ‘Long-term vision and an enabling policy environment critical for Indian
Aviations’ has stated that the aviation sector needs to be in good health if the country has
to achieve double-digit GDP growth. It believes that about three years will be needed for
the government to set the ground for the changes to kick-in. CAPA suggest a two-stage
plan. Stage 1, till 2015/16, will make a period when the government removes distortions
in the sector to create a level-playing field by establishing new regulatory, legal and fiscal
frameworks and strengthening institutional capacity. Stage 2, or post 2015/16, will be
characterised by a liberal aviation sector which is professionally regulated and where
competitive dynamics will determine market outcomes.
ATF FUEL PRICES
1. IOC, HPCL and BPCL have hiked jet fuel or aviation turbine fuel (ATF) by 17% in line
with firming global rates on 16th
July. ATF prices in Delhi are hiked by Rs 1,039 per
kilolitre to Rs 62,208 per kilolitre while in Mumbai prices are raised by Rs 1,069 to Rs
63,003 per kilolitre.
2. A survey has showed Indian carriers pay anywhere between 47% and 65% more for
fuelling up their aircraft for domestic flights than other airlines globally. Fuelling for
international flights in India is 13% to 27% more than their peers globally.
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2. AIRPORT – AAI MANAGED AIRPORTS
1. Netaji Subhas Chandra Bose International Airport has proposed to hike rentals for
ticket counters and other space (provided to airlines) inside the new terminal building
which is expected to be operational in October.
2. Kolkata Airport has lined up a trial run of the arrival lounge of its new integrated
terminal on July 15th
. Trial runs for departure facilities and international flight
operations including customs and immigration set-up are likely to be taken up soon.
3. Bhopal Airport building has been adjudged first in the National Structural Steel
Design and Construction competition conducted by the Institute for Steel
Development Growth.
4. Indore Airport was ranked second in the National Structural Steel Design and
Construction competition conducted by the Institute for Steel Development Growth.
5. Air Cargo Complex at Mangalore Airport is likely to be commissioned by August.
The cargo terminal will be handling international and domestic cargo.
6. The trial run at the new international terminal at Chennai Airport was carried out on
24th
July. The new domestic terminal at the Airport is ready for the inauguration
anytime after August 1 and will be operational from Independence day i.e. August
15th
. The Rs 2,700 crore project was initially slated to be completed in mid 2011 but
was postponed due to delays in execution. Passenger handling capacity will increase
from 9 million to 23 million.
7. Madurai Airport has registered a positive growth of over 30% in number of domestic
passengers in 2011-12. A study has revealed that the passenger traffic form Madurai
could grow to 9.17 lakh including 2.36 lakh international passengers by 2016.
APAO MEMBER AIRPORTS
2.1 Bangalore International Airport Pvt. Ltd.
1. Bangalore International Airport Limited has been honored with the Golden Peacock
Management awards 2012 making Bengaluru International Airport the first ever
airport to receive this recognition. The World Environment Foundation, with the aim
of improving sustainable and effective Environment Management Systems within
organizations, has conferred this prestigious award to BIAL.
2. Bangalore International Airport Limited was visited by Shri Vijai Prakash Agrawal,
Chairman, Airports Authority of India (AAI) on 16th
July to inspect the developments
on the T1 expansion work. The inspection areas included the additional terminal
space on both sides of the existing terminal – the roof elements, added infrastructure
for check in counter, baggage make up areas, lounge areas, added passenger
amenities and the new VVIP building.
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2.2 Cochin International Airport Pvt. Ltd.
1. The radar facility at Cochin International Airport is expected to be fully operational by
December this year. The construction of the NAV-AID building which will house the
radar equipment is in the final stages. The equipment is being procured and will be
installed by the Airports Authority of India, which is responsible for air traffic
management at Cochin International Airport. AAI has designated Cochin International
Airport as a lower area control centre as part of restructuring of the Indian airspace. At
present, air traffic management at Kochi is controlled with the help of radar inputs from
Thiruvananthapuram (area control centre) and Mangalore in coordination with the flight
information centre in Chennai. Once the radar becomes fully operational, the aircraft
landing and take-off will be totally under the control of the radar controller, eliminating
the need for any judgment by the pilot during these procedures, even under conditions of
very limited visibility. This will enhance the safety of operations, besides minimising the
holding time of aircraft for landing, thereby saving aviation fuel.
2. Cochin International Airport Ltd. has recorded a profit after tax of Rs 102 crore in 2011-
12 as against Rs 90 crore in the preceding year. Surge in duty-free sales and non-
aeronautic revenues has contributed substantially to the revenue growth of during FY-12.
The pretax profit also showed a marked improvement from Rs 116 crore during 2010-11
to Rs 134 crore during the current year. CIAL has been consistently generating profits
from 2003-04, barely 3 years after its commissioning in 1999.
3. Cochin International Airport Limited has invited Expression of Interest from Solar
System Technology Holders to design, install and commission a Solar Photo Voltaic
Power System for the terminal building of the airport. This is a pilot
project acting as a prelude to the main project which will be taken up later. The plan is to
set up the rooftop system to be connected to the existing power grid, so as to reduce the
electricity consumption at the airport. The project will be studied prior to the initiation of
a higher capacity solar energy generation project proposed to be installed at the car park
area and available roof top area of the buildings. The agency will be asked to conduct
solar mapping for the airport premises. It will have to prepare a detailed project report
and also suggest an appropriate model for implementation of the project.
4. Cochin International Airport has introduced four new self-service check-in kiosks, which
allow passengers to check-in, select their seat and print their boarding pass. Passengers
flying with Air India and Jet Airways can make use of the facility, while the airport is
hoping to encourage more airlines to use the kiosks in the future. The installation of the
kiosks is part of Cochin International Airport Limited’s (CIAL) ongoing five-year
strategic partnership with SITA, which was signed in 2010. SITA’s passenger bag
reconciliation and message distribution solutions have also been installed at the airport to
improve baggage handling efficiency and reduce operational costs.
5. Cochin International Airport Limited is set to diversify its activities to the Power Sector.
The company has floated a new wholly owned subsidiary company “CIAL infrastructures
Limited”. The company is keenly interested in the sunrise sector of
“Renewable Energy” which includes solar energy, wind energy and
mini-hydel projects.
Page 14 of 27
2.3 Delhi International Airport Pvt. Ltd.
1. Indira Gandhi International (IGI) Airport on 17th July became the fifth airport in the
Asia-Pacific region to receive accreditation for its efforts at reducing carbon
emissions. Airports Council International (ACI) accredited the IGI Airport at level 2 -
'Reduction' of carbon emissions under the Airport Carbon Accreditation (ACA)
programme. The IGI Airport is the second airport in India after Bangalore
International Airport to be accredited at this level.
2. Bird hit cases at the Indira Gandhi International Airport have halved in the last four
years. In 2008 and 2009, there were 67 incidents, in 2010 there were 36, in 2011 it
was 34 and only 9 cases so far for the present year. To prevent the menace caused by
the bird activity, Delhi International Airport Limited has a dedicated team of Bird
Aircraft Strike Hazard (BASHM) inspectors along with a team of 80 bird chasers on
both sides of the operational runways and 12 sharp shooters armed with acoustic guns
that guard’s three operational runways from dawn to dusk.
Furthermore, Sarvatra wildlife team is engaged to facilitate the capturing of stray
animals in the airside. Controlled use of fire crackers of low, medium and high
decibel and vehicles fitted with radiotelephony and scare crow devices with distress
calls to scare birds are also adopted. Maintenance of grass not below 6 inches, to
prevent insect visibility as well as covering of drains within the airport boundary with
wire meshing is being proposed. Methods such as distribution of ‘Do’s and
Don’ts’(leaflets), and the importance of not feeding the birds and stray animals as
well as awareness campaigns within the airport by means of posters, making the
workers aware on consequences that could lead to bird strike are used to spread
information and educate the common people.
3. Indira Gandhi International Airport had a ‘soft launch’ of the Phase I of the brand
new cargo terminal which would double the airports cargo handling capacity to 2
million metric tonne after terminal is fully operational. The area of the new terminal
is 70,000 sq. mts. In Phase I the terminal has a capacity of 6 lakh MT annually. The
new terminal will be operated by Delhi Cargo Service Center (DSDC).
4. Several major international airlines such as Lufthansa Group Airlines (including
Australian and Swiss International), Virgin, KLM, Air France and United has filed a
petition in the Delhi High Court challenging the steep increase in airport charges and
is seeking the April order passed by the airport economic regulator quashed. The
airlines have termed DIAL’s 334% increase in airport tariff illegal. The airlines,
between them, carry about 30% of the outbound traffic from India.
5. Supreme Court on 20th
July, has issued notices to the centre, the Airports Authority of
India (AAI) and the Airport Economic Regulatory Authority Appellate Tribunal
(AERAAT) on a petition challenging the levy of the Airport Development Fee (ADF)
of Rs 200 for domestic and Rs 1300 for international passengers by the Delhi
International Airport Limited (DIAL) at the Indira Gandhi International Airport, New
Delhi on an appeal filed by Consumer Online Foundation against the order passed by
the AERAAT. The Supreme Court said that the Airport Development Fee (ADF)
Page 15 of 27
collected from passengers was ‘a little unreasonable’ and suggested that VIPs be
charged like in abroad for use of special lounges instead of burdening common
travelers.
6. Delhi International Airport Limited has an extensive arrangement of power back-up
and multiple redundancies. The complete IGI airport is broadly divided into 3
areas for the backup power requirement.
a) Terminal 3—42 MW (14 No. of 3 MW). The 14 engines attached to generators
develop more than 56000 horsepower. That is equivalent to the power output
of 1522 Maruti 800 cars
b) Terminal 1, Terminal 2--2 nos. of 1 MW and 1 nos of 0.50 MW.
c) Airside- 6 substations, each having 2 sets of 1.25 MW. This offers complete,
multiple redundancy ensuring that critical lighting on runways, taxiways and
elsewhere on the airside is never compromised.
The total installed DG capacity at IGIA is 59.5 MW. The capacity is well in excess
of actual loads.
7. Delhi International Airport Limited has initiated GMR-IGI Airport Awards with the
aim of recognizing the key performers in the aviation industry who work relentlessly
to keep the airport operations running. The first edition of the awards was presented
on 26th July in 28 diversified categories with one special recognition award at a gala
function in Gurgaon. The event saw the participation of almost 500 guests from all
major stakeholders including AAI, CISF, Customs, Immigrations, Passenger and
Cargo Airlines, Cargo Operators, ground handlers, JV partners, Retail partners, F&B
and several other concessionaires. The entire award evaluation process was carried
out and validated by renowned auditors, KPMG.
2.4 GMR Hyderabad International Airport Pvt. Ltd.
1. GMR Hyderabad International Airport Limited (GHIAL) has started a series of
familiarization and orientation programme for Radio Cab Drivers of Meru and Sky Cabs
on airport operations, services and facilities at RGIA with an objective to bring attitudinal
change in the Radio Cab drivers and make them as Rajiv Gandhi International Airport’s
(RGIA) unofficial brand ambassadors and also inculcate a sense of belongingness in
them towards the airport.
Every Tuesday two batches of around 30 Radio Cab drivers from Meru and Sky Cabs are
being taken for a tour of domestic and international terminal by airport officials and
being briefed on various facilities, services and useful information for passengers such as
ATMs, self-check in counters, retail stores, food outlets, Duty Free shops, smoking
lounges and drinking water fountains etc. At the end of the tour, drivers are educated on
airport functions, security concerns, do's and don’ts at the airport, how to start a positive
interaction with passengers, enhancing passenger experience, cab management on ramps
etc. This programme is designed for nearly 800 cab drivers from Meru & Sky Cab and
since its inception, oriented 120 drivers so far.
Page 16 of 27
2. GMR Hyderabad International Airport Limited (GHIAL) has recently opened an
‘Experience Zone’ in the passenger terminal building, presenting the next level of retail
experience for passengers. With inclusion of the zone, Hyderabad Airport can boast of all
reputed and diverse retail brands which passengers can explore at leisure, also enjoying
the world class ambiance around it. This great effort, which is part of the Phase-1
Terminal Modification project, has been greatly appreciated by passengers, stakeholders
and media.
3. GMR Hyderabad International Airport Limited (GHIAL) celebrated Parent’s Day on 4th
Sunday of July at the airport with great enthusiasm.
4. GMR Hyderabad International Airport Limited (GHIAL) organized a “Free BP and
Diabetic Testing Camp” for passengers at the airport recently which commendably
attracted close to 650 passengers and has given the terminal operations team an impetus
to explore such other facilities for passengers in the near future as well, with the support
of Apollo Hospital.
5. GMR Hyderabad International Airport Limited (GHIAL) arranged for kindergarten
students of Sri Vidyanjali High School along with their teachers to the airport to convey
ECO friendly messages to the airport community and departing passengers. The children
carried with them placards with environmental slogans and interacted with all. The
GHIAL acknowledged the children’s endeavour and energy by presenting them with
souvenirs.
6. GMR Hyderabad International Airport Limited (GHIAL) is working towards making the
airport a ‘silent airport’ to make transit for passengers even more comfortable. The
airport authority drafted a public announcement policy which was discussed with the
airlines and ground handling agencies for a consensus in its implementation. This now
limits the number of announcements considerably against the previous numbers. Certain
steps are being taken to ensure success of the concept:
o Audits carried out regularly
o Replacement of all microphones at the boarding gates with Shure microphones,
thus reducing the decibel levels
o Reduced speaker outlook levels at critical areas
o Airline and ground handling staff regularly being sensitized
o Rewards given to the staff making best announcements as per decided norms
2.5 Mumbai International Airport Pvt. Ltd.
1. Chhatrapati Shivaji International Airport has commissioned a new Rapid Exit Taxiway
(RET) N5 for Runway 09 on July 4. The new taxiway RET N5 is located on the northern
side of primary runway 09-27 and will reduce the arrival runway occupancy time (ROT)
by 9- 10 secs. The location of this taxiway has been aptly designed (located at a distance
of 2145 m from the threshold) to facilitate all wide-body aircraft to vacate runway 09
after landing with ease. RET N5 is capable of handling Code-F aircraft (such as A- 380
and others alike) has a length of 415 mtrs. The first flight to utilize the new RET N5 was
a Boeing 737 aircraft which was welcomed with a “Water Cannon” salute.
Page 17 of 27
7. Mumbai International Airport Limited has opened up its commercial opportunities for
business. It has released Requests for Quotations (RFQ’s) for Food & Beverages
Concessions & Sale of Spaces for Advertising which will be followed by Duty Free and
Specialty Retail, with Request for Proposals (RFP’s) to follow.
This is the first of several things to follow which will go on to make the experience at
Terminal 2, truly world class.
8. Mumbai International Airport Limited has started levying penalties on private jets for
over staying at Chhatrapati Shivaji International Airport form July 15th
and the penalty
charges are to range from Rs 1,000 and Rs 15,000 per hour. The fine is to discourage
unauthorized parking at the airport.
9. Mumbai International Airport Limited has moved a criminal court over bounced cheques
by Kingfisher Airlines.
10. Mumbai International Airport Limited has issued a tender for the construction of the
structure on which PIDS will be installed. The Perimeter Intrusion Detective System
(PIDS) is a combination n of three kinds of surveillance system, wherein Closed-Circuit
Television (CCTV) cameras, infrared and radio frequencies are backed by a control
room. Any kind of intrusion sends an instant alert to the security agencies. It also gives
the exact point of entry of intruders which helps security forces reach the spot quickly.
Page 18 of 27
3. AIRLINES
Religare Group has launched a Scheduled Regional Airline ‘Air Mantra’ which started
passenger services from July 23rd
with daily flights between Amritsar and Chandigarh. Air
Mantra plans to expand its network to connect various smaller cities including Jammu and
Dharamshala. At present, the airline currently has two exclusive 17-seater Beechcraft 1900D
aircrafts that have been personalized to make every seat a window-cum-aisle seat.
3.1 Air India
1. Air India is planning to hire junior pilots from overseas markets, a move that may trigger
policy change as the current regulations do not allow recruitment of expats for the
position.
2. Air India has stopped the practice of using caged rats to test the fumigation effectiveness
in its aircraft after protests by groups campaigning for prevention of cruelty against
animals. The airline is now relying on gas concentration meters.
3. The 58-day old strike by over 400 Air India union pilots who fly international routes
ended late on 3rd
July after the Indian Pilot’s Guild decided to call off their agitation. The
decision came after the pilots assured the Delhi HC that they would call off their stir
within the next 48 hours. AI Management has constituted a three-member committee
which include high-level officials to look into the reinstatement of 101 sacked pilots on a
case-to-case basis. As on 24th
July, Air India has reinstated 9 of 101 pilots and cases of
the remaining pilots would be considered within 4-6 weeks.
4. AI board on 3rd
July discussed the feasibility of offering voluntary retirement scheme
(VRS) to some of its 29,000 employees, funding requirements and selling old aircraft
among other issues was discussed. The VRS is part of both the Dharmadhikari
Committee report in human resource policies and the turnaround plan the management
had submitted to the government for the Rs 30,000 crore cash infusion by the centre.
5. Air India plans to normalise international operations by mid August, Air India may stand
to lose another Rs 250-300 crore as the 340 pilots who were on strike may get to fly only
in early August as the pilots will have to get their fitness checked by Doctors and
undergo refresher training and a mandatory route flying check. Due to the strike Air India
suffered a loss of around Rs 550 crore.
6. Air India management would begin the process of stationing pilots as per AI’s
operational requirements so as to avoid wastage of time and money in ferrying pilots to
operate flights from Mumbai to the capital. 75% of the flights operate form Delhi while
75% of the pilots are based in Mumbai so the pilots fly in as passengers from Mumbai to
operate flights from Delhi and return the same way. Also when the pilots fly as
passengers for operating flights that flying time also goes towards their flying duty time
limitation and limits operational time.
Page 19 of 27
7. Air India is planning to seek an additional financial support of over Rs 1,000 crore from
the government to offer voluntary retirement scheme (VRS) to over 5,000 employees.
This is in addition to the Rs 4,000 crore that the government has already allocated as
budgetary support.
8. Air India earned Rs 2,900 crore for the quarter April-June 2012 which is 20.8% rise or Rs
500 crore more than the corresponding period last year. The increase in revenue was the
result of the various marketing initiatives and offers made to attract customers and the
Kingfisher issues.
9. The Government has appointed Syed Nasir Ali as joint managing director of Air India.
10. Air India has introduced a new Madurai-Kochi service.
11. Air India has invited merchant bankers to manage its proposed Rs 7,400 crore issue of 19
year bonds to be priced at 9.50%. The bonds will be paid half-yearly, yielding 9.85% on
an annualised basis.
12. Air India is planning to sell is collection of art works which include hundreds of
paintings, sculptures, antique pieces, toy planes and other artefacts and are expected to
fetch at least Rs 300 crores.
13. The board of Air India has approved an Rs 800 crore package to facilitate voluntary
retirement of its employees.
14. Air India revenue rose 17.8% in April-June quarter. In June, the airline posted a 1.2%
growth in passenger revenue.
15. Group of Ministers (GoM) on 25th
July cleared an undisclosed amount of compensation
that Boeing has offered to AI for more than 4 year delay in delivering the Boeing 787
Dreamliner. The decision of the GoM will now be placed for Cabinet Committee on
Economic Affairs (CCEA) approval.
16. Air India is launching e-gift coupons on Rakhi which can be redeemed for tickets to
domestic destinations.
17. Air India Express has launched new flight operations schedule from Mangalore to
Mumbai and Middle East. The Mangalore-Kuwait-Mangalore flight will operate on three
days in a week.
18. Delhi High Court on 31st July issued notice to the Indian Commercial Pilots Association
on an appeal by Air India against an order by a Single Bench which had stayed training
co-pilots to directly become commanders on advanced wide-bodied Boeing-777, Boeing-
787 and Boeing-747.
Page 20 of 27
3.2 Kingfisher Airlines
1. Promoter holding in Kingfisher Airlines has decreased to 35.86% on conversion of
debentures into equity by corporate entities. Promoter holding was 43% as on April 24th
and was over 50% last fiscal.
2. ICICI Bank has sold its entire Rs 430 crore debt exposure in the airline to a debt fund
managed by Srei Venture Capital Limited (SVCL).
3. On 12th
July LKP Merchant sold one crore shares of Kingfisher Airlines for more than Rs
10 crore or Rs 10.41 apiece through an open market transaction. On 11th
July, LKP
Merchant Financing sold 65 lakh shares of Kingfisher Airlines for Rs 6.85 crore or Rs
10.54 apiece through an open market transaction. On 3rd
July, LKP Finance sold 81 lakh
shares of debt-ridden Kingfisher Airlines through a bulk deal on NSE which was
executed at Rs 12.01 apiece valuing the transaction at Rs 9.72 crore.
4. Kingfisher Airlines lenders may soon sell its two properties in Mumbai and Goa to
recover some part of the loan worth over Rs 7,500 crore. HDFC Securities has been
appointed to do a valuation of the two properties. Consortium of 17 Banks held meeting
with airlines officials on 5th
July and asked the airline to submit a report on the steps
taken to improve its operations and the challenges faced by the company in the next two
weeks.
5. Directorate General of Civil Aviation is going to evaluate the overall condition of
Kingfisher Airlines. The Airlines flying license could be suspended if it fails to maintain
the schedule it is operating for some time.
6. Shares of Kingfisher Airlines has dropped below its paid-up value of Rs 10 as it ended at
Rs 9.94 on the Bombay Stock Exchange and Rs 9.95 on the National Stock Exchange
under relentless sell-off by investors on 16th
July 2012.
7. Government would soon issue a notice to Kingfisher Airlines asking it to clear all service
tax dues along with penalty for the default. Kingfisher Airlines owes about Rs 70 crore in
service tax.
3.3 SpiceJet
1. SpiceJet has announced that it will make New Delhi its third regional base after
Hyderabad and Chennai for its 70-seater Bombardier Q400 aircraft.
2. SpiceJet is waiting for Airports Authority of India’s permission to introduce flights
between Bangalore and Hubli starting August.
3. SpiceJet will start flights to six countries which is Kabul (Afghanistan), Riyadh (Saudi
Arabia), China, Hong Kong, Bangkok and Male (Maldives). From August 14th
, SpiceJet
will start a three times a week service to Kabul from Delhi, this will be the 4th
Page 21 of 27
international destination of SpiceJet after Kathmandu, Dubai and Colombo. SpiceJet will
also launch a daily flight connecting Dubai to Delhi.
4. SpiceJet has started operation of direct flight between Amritsar and Srinagar from 12th
July.
5. SpiceJet has launched new flight services connecting the cities of Amritsar, Chandigarh
and Srinagar to Delhi from 13th July. The Airline offers two direct flights on the Delhi-
Chandigarh-Delhi route and one Delhi-Chandigarh-Srinagar-Delhi connecting flight.
6. In the Southern region, SpiceJet has introduced four new flights from Gannavaram
airport (Andhra Pradesh) to Chennai and Bangalore form July 19. The airline also
launched two daily direct flights from Delhi to Dehradun which would be operated by
new Bombardier Q400 NextGen turboprop aircraft form July 19.
7. SpiceJet has officially sought the permission of the AAI to operate the services to
Bangalore and Chennai with Kingfisher discontinuing its flights between Vijayawada and
Bangalore and the jet Airways (Jet Konnect) operating s single flight to and from
Bangalore via Hyderabad based on demand.
8. SpiceJet is planning to raise money from Private Equity’s to fly more roués by
purchasing more planes.
9. SpiceJet reported a profit after tax of Rs 56.15 crore for the quarter ended June 30 while
for the same quarter last year, SpiceJet reported a loss of Rs 71.96 crore. The revenue
increased by 51% to Rs 1,407 crore compared with Rs 931 crore previously.
10. SpiceJet is leasing out two of its Boeing aircraft to a Saudi Arabia-headquartered budget
airline Nas Air.
3.4 Jet Airways
1. Jet Airways has signed a 10-year maintenance agreement valued at $150 million with GE
Aviation, which will cover engine maintenance, repair and overhaul of engines that will
power the airline’s Airbus A330 fleet. The agreement will help Jet provide flexibility to
decide when to overhaul its engines as the planes are customised and developed jointly.
2. Jet Airways has introduced JetEscapes packages for corporate travellers and guests
seeking a holiday break. The package range from overnight stays for individuals and
corporate groups to monsoon packages and luxurious getaways.
3. Jet Airways has been permitted to launch seven weekly flights to Dhaka, Chittagong and
Dar-es-Salaam.
4. Jet Airways had sought permission to join the world’s largest airline grouping, Star
Alliance Services GmbH. But the Government wants the alliance, comprising of 27
Page 22 of 27
airlines across the globe, to decide on Air India’s membership before considering other
applications.
3.5 Indigo
1. InterGlobe Aviation Ltd. and Pratt and Whiney Inc. has signed an agreement for the
purchase of 300 PurePower PW1100G-JM engines for 150 Airbus A320neo family
planes. The agreement includes additional options for buying more engines and a long-
term maintenance agreement. Deliveries are scheduled to begin in 2015.
2. IndiGo has received an award for the Best Low Cost Airline in Central Asia and India
and also for the Best Airline Staff Service in Central Asia and India at the annual Skytrax
World Airline Awards.
3. Indigo has been allowed to operate 63 weekly flights, including a daily service to
Kathmandu and Jeddah.
4. IndiGo will launch a second daily service from Delhi to Bangkok and a daily flight to
Dubai form Delhi in August.
5. IndiGo is pushing the government to offer incentives such as discounts on fuel and lower
charges to the airlines that performs well.
3.6 GoAir
1. GoAir has introduced New Delhi-Ranchi-Patna-Delhi flights.
2. GoAir is planning to raise $200 million (Rs 1,100 crore) in equity to pare debt.
3. GoAir is planning to raise money from Private Equity’s to fly more roués by purchasing
more planes.
4. GoAir has asked for permission from the Ministry of Civil Aviation to be allowed to fly
international with its present fleet size of 12 aircraft. The criteria for the schedule
operator to go international are that the airline should have been in operation for last 5
years and it should have 20 aircraft.
3.7 International Airlines
1. All Nippon Airways (ANA) is raising up to $2.6 billion in a share sale to buy new planes
and to bolster its finances as it faces a resurgent rival in Japan Airlines and increased
competition from budget airlines.ANA is raising the funds before Japan Airlines launches
its initial public offering slated for September 2012 and estimated at around $8 billion.
2. All Nippon Airways (ANA) is launching flights from Delhi from 29th
October, the
booking for which would from August. ANA has been operating daily flights between
Mumbai and Tokyo since 2007 and Delhi would be its second destination in India.
Page 23 of 27
Through these flights, the airline plans to connect major destinations on the American
west coast such as Seattle, Los Angeles and San Francisco.
3. Tiger Airways is expanding its operations to Hyderabad’s Rajiv Gandhi International
Airport (RGIA) from September 28th. The airline would operate between Singapore and
Hyderabad five times a week. This new addition marks the sixth Indian destination for
Tiger Airways after Bangalore, Chennai, Kochi, Thiruvananthapuram and
Tiruchirappalli.
4. Tajik Air, national carrier of Tajikistan, has appointed Air India SATS Airport Services
(AISATS) as its official ground handler at Delhi International Airport and has launched a
passenger flight every Friday using a Boeing 737 aircraft. AISATS has started providing
ground handling services to Tajik Air’s flights to India from Dushanbe.
5. Pegasus Airlines is waiting for Airports Authority of India’s permission to introduce
flights between Bangalore and Hubli.
6. Armavia, Armenian Airline would be operating flight twice a week on the Yerevan –
Amritsar route from July 25th
2012.
7. Qatar Airways has been ranked as the World’s best airlines at the Skytrax World Airline
Awards, for the second year in a row.
8. Emirates Airlines is offering a 15% discount from Chennai to over 50 destinations for
Economy and Business Class between July 16th
and 23rd
.
9. British Airways (BA) is exploring opportunities for extending its direct flight services to
tier-II cities in India and is likely to explore regional tie-ups with airlines like Jet
Airways, IndiGo, GoAir, SpiceJet etc.
10. Lufthansa has chosen India as second market worldwide for the all-new ’Queen of the
Skies’ Boeing B747-8 debut on August 6th
2012 from Delhi to Frankfurt. The B747-8 is
configured with 8 first-class, 92 business class and 262 economy class seats.
11. From September 2nd
2012, Lufthansa’s first class passengers on the Munich-Mumbai
sector can travel in better comfort as the airline will be served by refurbished A330-300
aircraft fitted with the new Business Class seat which will have 6.5 ft long bed.
12. British Midland International has decided to withdraw it’s thrice a week flight between
London and Amritsar from October 27 which will hurt the export of perishable goods
from Punjab and Himachal Pradesh to Europe.
13. South African Airways will start daily services between Mumbai and Johannesburg from
the current five flights a week from 3rd
October 2012 subject to government approvals.
Page 24 of 27
4. CARGO
1. Air India SATS Airport Services (AISATS), a joint venture between Air India Limited
and SATS Limited has been awarded the TAPA (Transported Asset Protection
Association) certification for its Bengaluru Cargo Terminal, making it the first Indian
airport services provider to be certified for the highest security requirement i.e. TAPA
Freight Security Requirements Class A.
2. CBEC has developed an “Interactive Customs Tariff” application as part of its ongoing
trade facilitative measures. The interactive website will enhance public access to
information on duty payment and other regulatory requirements for clearance of goods,
when imported into India. Approved exporters, importers and freight forwarders to be
given preferential treatment in terms of faster clearance and less physical inspections
along with other benefits.
Page 25 of 27
5. TRAFFIC
1. According to Directorate General of Civil Aviation, domestic air traffic fell 3.84% in
June 2012 over the same month last year, after falling 0.9% in May 2012. Air Traffic has
grown just 3.7% in Jan-June, 2012 over the same period last year. The volume of
domestic passengers declined in June to 5.11 million from 5.31 million over the same
month last year.
2. DGCA has said that passengers flown by domestic airlines had declined to 5.44 million
in May 2012 against 5.49 million in May 2011 which is a fall of 1%. Domestic passenger
traffic seems to have fallen about 5% year-on-year because of increased fares, which are
30% higher than last year.
3. Passengers carried by domestic airlines during Jan-June 2012 were 309.16 lakhs as
against 298.10 lakhs during the corresponding period of previous year thereby registering
a growth of +3.71%
4. Market Share of Scheduled Domestic Airlines
298.1
53.12
309.16
51.08
0
50
100
150
200
250
300
350
YoY MoM
Pas
sen
ger
Car
rie
d (
in la
khs)
2011 2012
Growth YoY - (+3.71%) MoM - (-3.84%)
Jet Airways,
20.7%
Jet Lite, 6.7%
Kingfisher, 4.2%
Spicejet, 18.6%
GoAir, 6.9%
IndiGo, 26.0%
Air India (Dom), 16.8%
Page 26 of 27
5. Passenger Load Factor of Scheduled Domestic Airlines
6. Foreign Tourist Arrivals (FTAs) during the Month of June 2012 was 4.32 lakh as
compared to FTAs of 4.12 lakh during the month of June 2011 and 3.85 lakh in June
2010. There has been a growth of 4.8% in June 2012 over June 2011 as compared to a
growth of 4.6% registered in May 2012 over May 2011. FTAs during the period January-
June 2012 were 32.37 lakh with a growth of 7.4%, as compared to the FTAs of 30.15
lakh with a growth of 10.8 % during January-June 2011 over the corresponding period of
2010.
7. Foreign Exchange Earnings (FEE) during the month of June 2012 were Rs. 6485 crore as
compared to Rs. 5440 crore in June 2011 and Rs 4751 crore in June 2010. The growth
rate in FEE in ` terms in June 2012 over June 2011 were 19.2% as compared to 14.5% in
June 2011 over June 2010. FEE from tourism in ` terms during January-June 2012 were
Rs.43760 crore with a growth of 24.4%, as compared to the FEE of Rs. 35163 crore with
a growth of 12.1% during January-June 2011 over the corresponding period of 2010.
8. According to the data released by Airports Authority of India (AAI) for the period of
April-May, 2012, International passenger traffic saw an increase of 4.8%. Mumbai stood
third from the bottom of the rating chart in terms of passenger growth of 5.1%. Tier II
cities like Guwahati saw an increase of 19.8%, Coimbatore 13.9%, Cochin 13.5%,
Coimbatore 13.5%and Lucknow 11.3% lead the growth.
9. According to the International Air Travel Association, demand in the domestic air travel
market in India shrank 0.7% in June 2012. Demand has slowed all over the world since
the beginning of 2012.
70.6 77.1
80.5
73.3
82 78.1
86.3 71.3 74.2 79.8
62.2
80.4 76.6
86.5
0
10
20
30
40
50
60
70
80
90
100
Air India Jet Airways Jet Lite Kingfisher SpiceJet GoAir IndiGo
Seat
Fac
tor
(%)
May-12 Jun-12
Page 27 of 27
6. SOURCE
1. Airport Economic Regulatory Authority Appellate Tribunal (AERAAT)
http://compat.nic.in/aera.html
2. Ministry of Civil Aviation http://www.civilaviation.gov.in/
3. Press Information Bureau http://pib.nic.in/newsite/mainpage.aspx
4. News Articles published in various newspapers.
5. Bangalore International Airport Limited
6. Cochin International Airport Limited
7. Delhi International Airport Limited
8. GMR Hyderabad International Airport Limited
9. Mumbai International Airport Limited
Association of Private Airport Operators (APAO), 710, 7th Floor, Surya Kiran Building, 19 Kasturba Gandhi Marg, New Delhi, India.
Ph: +91-11-41510916, Fax: +91-11-23329153
Web: www.apaoindia.com, e-mail: [email protected]