Slowdown-hit airlines stop paying commission.
After 11 years of hanging like a sword on PepsiCo India Holdings Ltd, the government's condition that the company must dilute its equity in fully-owned downstream ventures is close to being waived.
The Foreign Investment Promotion Board (FIPB) has rejected a proposal by Tata Investment Corporation (TIC) to issue zero coupon convertible bonds (ZCCBs) with detachable warrants to its shareholders.
The government and Reserve Bank of India are working on measures that include relaxing norms for Non-Performing Assets (sticky loans) and prudential lending to kick-start key infrastructure projects.
Airline companies under the Federation of Indian Airlines plan to make a presentation to the civil aviation ministry saying they will be forced to axe 8,000 employees if the government implements the new ground handling policy from January 1, 2009. About 29 per cent of the 28,000-odd employees working in the private carriers are involved in ground handling.
The airline has also finalised its plans to lease out five of its Boeing 777-300 ER aircraft to a Turkish carrier, sources add. The airline has been able to negotiate a premium for the deal in a market where lease premiums have dropped.Domestic carriers are facing turbulent times because of the high crude prices and variable taxation on the air turbine fuel. The problem is now compounded because of a slump in the economy now.
The government is discussing a number of policy measures to insulate India from the impact of the global financial crisis including further banking reform, industrial de-control, auctioning all loss-making public sector units, foreign investment in retail, amending labour laws and notifying important pending legislation like the Delhi Rent Control Act.
Maverick entrepreneur Tony Fernandes, who built low-cost carrier AirAsia to be a formidable player in South-East Asia, is prepared for a price battle in the Indian skies.
Though private airports did not spell out the exact sum owed by Kingfisher, in strict confidentiality one of the private airport operators confirmed that the airline was the biggest defaulter with them. Airport charges include landing, parking, terminal and route navigation levy. Though AAI has enforceable bank guarantees, private airport operators do not have this facility.
The country's leading private airlines have sought a Rs 4,700-crore (Rs 47 billion) bailout package from the government to counter slowing passenger traffic, rising costs and an industry-wide liquidity crunch.
The airline also has plans to renegotiate its flying rights with the Indian government as it mulls deployment of the Airbus A380 - a double-deck, wide-body, four-engine plane - in the Indian skies. Air France might look at a 2010 entry date for India for the superjumbo. It has placed an order for 12 of these aircraft with first deliveries planned next year.
Singur divided between those who want Tata back and those who just want their land.
This is the first time an airline has made such a request to the ministry after the Tata-Singapore Airlines deal fell through in 2001 (Singapore Airlines was to have a 49 per cent share in the joint venture). The Indian government does not allow direct or indirect investments in domestic airlines, a move that was meant to protect domestic carriers. Mallya's request marks a sharp change from domestic players' stand.
The regulator has suggested that all spectrum will be auctioned as opposed to the current policy of bundling it with a 2G licence. A beginning has been made with the auctioning of spectrum for 3G services, which is due later this year. Trai has also suggested that licences for any telecom service should be auctioned as opposed to the current policy, where it is given on a first-come-first-served basis. The new policy is expected to be ready by the end of December this year.
In a move to soften the blow of Lehman Brothers' bankruptcy in the Indian stock and asset markets, four banks are set to take over its structured products businesses in India.
Barely a fortnight after it launched international operations and integrated low-cost carrier Simplify Deccan with it, Vijay Mallya-promoted Kingfisher Airlines plans to lay off at least 300 employees, official orders for which are to be conveyed on Monday.
At least three major broadcasting companies have held discussions on forming a combine, the first of its kind, to counter the might of media buying houses in dictating commercial air-time rates.
Barclays and BNP Paribas are considering the acquisition of Lehman Brothers' investment banking and brokerage businesses in India.
According to travel management companies, travel budgets of financial sector majors have seen a fall of 40 per cent this year compared with the decline in other segments, like manufacturing, which has shrunk by 20 per cent and IT, which has seen a drop of 10-15 per cent. Global travel conglomerates like Radius, which have a formidable presence across the globe because of the travel agents' network, said times are tough as a majority of businesses are shrinking.
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