The government is likely to consider infusion of Rs 800 crore (Rs 8 billion) as equity in the cash-strapped Air India on Wednesday, but wants the airline to take "extraordinary" measures to achieve a financial turnaround.
In 2017, 60 million passengers flew between India and the UAE, the largest overseas air travel market from India.
The Kalrock-Jalan consortium - new owners of Jet Airways - has got an assurance from around 30 airports that if the airline restarts operations, 170 pairs of slots can be made available. However, whether those slots will be according to the airline's demand will depend on the order of the insolvency court, which is slated to come next week. Sources said the new management feels it is extremely important that some of those slots are restored or else its business plan of operating Jet as a premium carrier will not be viable.
The charges for security component of passenger service fees will not increase much and a passenger may have to bear an extra of Rs 50
The airport operations are likely to be disrupted as the employees have threatened to start an indefinite 'non-cooperation movement' from march 12 after the government today rejected their demands for continuing operations of Bangalore and Hyderabad airports. The existing airports in both the metros are to be closed down once the new greenfield airports launch their operations.
Issues raised by the industry, like rationalisation of the eight per cent central excise on jet fuel, still remain to be addressed. As a result of the government abolishing five per cent customs duty on aviation turbine fuel from Tuesday, state-run oil firms have cut jet fuel prices by Rs 2,100 per kilo litre, on top of the 17 per cent price reduction announced late last week.
Proceeds may be used to partly pay off its Rs 46,570-cr debt
Deputy Prime Minister Lal Kishenchand Advani conveyed this to Bharatiya Janata Party general secretary Pramod Mahajan.
The civil aviation ministry granted the traffic rights to Deccan Aviation, in which Kingfisher Airlines merged in 2007, to operate services to London and other global destinations. The airline, which has already firmed up plans to launch its Bangalore-London (Heathrow) flight from the first week of September, would be starting its international services on the rights granted to Deccan Aviation on the India-UK sector.
Differences have cropped up between the civil aviation ministry and Delhi International Airport Ltd (DIAL) over the closure of the airport's main runway.
The directive from the civil aviation ministry came after the airlines together failed to utilise over 13 per cent of the slots allocated to them last year, official sources said. The domestic carriers have already filed their summer schedules which shows a marginal increase in the number of flights each week -- from 11,048 last year to 11,116 this year.
The civil aviation ministry has asked airlines not to charge excessive fares from passengers in the wake of agitation by pilots of Jet Airways.Media reports said that following strike by Jet pilots, other airlines were charging an average of Rs 9,000-10,000 for Mumbai-Delhi route, while some are even charging up to Rs 15,000 per seat.
The government is understood to have decided to infuse additional equity in Air India and give a soft loan to counter the financial crunch, as a high-level committee on Saturday asked the Civil Aviation Ministry to move a note on the issue for consideration of the Union Cabinet. There was no official confirmation of the quantum of equity infusion and the soft loan the government could give to the national carrier.
The civil aviation ministry and the directorate general of civil aviation plan to award the low-cost carriers some key morning and evening peak-time slots (a fixed time for departure or arrival of a particular flight) lying unused with the full-service carriers at metro airports like Delhi and Mumbai. DGCA officials and airline officials confirm that airlines like Jet and Kingfisher are not using around 10 per cent of their slots during the peak periods.
The demand for reduction in air fares echoed at a meeting of a Parliamentary Committee, with several MPs demanding that airlines should pass on the benefits of the drastic cut in oil prices to their customers.
The Civil Aviation Ministry has ordered a probe into the incident involving the ground security staff of Continental Airlines which subjected Kalam to security check before he was to board a Newark-bound flight on April 24.
Civil aviation minister Praful Patel, who held this portfolio in the first government of the United Progressive Alliance, too, has so far followed a liberal open-sky policy, sharply increasing the number of seats offered to West Asian airlines on flights connecting India. According to internal figures available with airlines, the total number of seats offered to West Asian carriers rose from 2.5 million in 2004 to 7.5 million last year.
Cabinet approval for greenfield airports within the 150 km radius of an existing airport is being done away with, according to the new greenfield airports policy, which has recently been sent for Cabinet consideration by the civil aviation ministry. This would have serious implications for airports in large metro cities including Bangalore, Kolkata, Hyderabad and Chennai, where a second airport will eventually be a reality.
The Board for Reconstruction of Public Sector Enterprises wants to examine the grave financial problems of Air India, but neither the Civil Aviation Ministry nor the national carrier has responded to the BRPSE offer.
The government on Wednesday asked promoters of the Mumbai International Airport Ltd (MIAL) to keep in mind local sensibilities during its modernisation amid claims of change of name of the airport.The Civil Aviation Ministry has strongly refuted allegations that the present name of the Chhatrapati Shivaji International Airport is being altered and the location of the statue of the warrior king is being replaced.
When Jet Airways shut operations, the slots which were allocated to it were temporarily distributed among various airlines. And, the airlines that were called upon to immediately create infrastructure so that the public at large does not face any hardship have invested huge amounts of money to created infrastructure to utilise such slots. "In view of this, though the allocation of slots to such airlines is temporary the same can't be withdrawn from them without any legitimate basis.", the affidavit said.
GMR Hyderabad International Airport Ltd, the consortium operating the new Hyderabad airport, has offered to halve ground-handling charges even as the civil aviation ministry allowed the domestic carriers to undertake their ground-handling till January 1, 2009. This will give the two sides enough time to resolve the contentious issue, which almost jeopardised the opening of the new airport and forced a postponement once.
The Mumbai airport has decided not to allow additional flights this summer, thanks to infrastructure bottlenecks. This is likely to spoil the expansion plans of all carriers, including private players like Kingfisher, Simplifly Deccan and Jet Airways. However, airlines have been allowed to re-apply for additional flights as & when they get delivery of new aircraft during the summer. Kingfisher had to shelve 11 additional flights out of Mumbai while Deccan has rescheduled too.
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.
This proposal is a part of the comprehensive aviation policy that the ministry has submitted to the Cabinet and which has now been referred to a Group of Ministers.
ccording to the MEA plan shared with the ministry of civil aviation that is set to begin from May 7, approximately 14,800 passengers will be evacuated from 13 different countries. F
These would include passenger engagement initiatives, consumer offers, and curated menus at food and beverage outlets.
Malaysian budget airline AirAsia moved a step closer to securing permission to launch operations in India, with Civil Aviation Minister Ajit Singh on Monday saying that all issues concerning the carrier's application have been resolved.
Ruia, a chartered accountant whose business ranged from sugar to textiles and heavy engineering to tyres, refused to comment on queries about his interest in Air India.
DIAL, the GMR-led consortium modernising Delhi airport, had projected it would get only a Rs 800 crore-Rs 1,000 crore deposit for the entire 45 acre land in the hospitality district, leaving a gap in funding for the modernisation plan. The aviation ministry allowed it make up the shortfall by levying an ADF on passengers. With DIAL managing to persuade bidders for the hospitality district to increase security deposits by close to 50 per cent, the ADF may now be reduced.
The international airport will initially focus on cargo exports as the passenger needs would be extensively served by the upcoming international airport near Panvel in Navi Mumbai, which is just 90 minutes' drive from Pune. The Maharashtra Industrial Development Corporation has issued a notice to begin the land acquisition procedure.
Ernst & Young LLP India has been appointed as transaction adviser for the strategic divestment process.
In fact, almost the entire increase in the allocation for the civil aviation ministry was cornered by the National Aviation Company of India Limited; it was earmarked Rs 8,165.64 crore as against the revised estimate of Rs 4,136.89 crore for 2008-09. The ministry received a total allocation of Rs 12,164.76 crore, compared with the revised 2008-09 estimate of Rs 7,490.06 crore, a hike of almost Rs 4,675 crore.
The Civil Aviation Ministry has moved a proposal to infuse Rs 2,000 crore of equity by December as the first phase of financial restructuring to bail out ailing Air India with some riders. Currently, A-I has an equity capital of only Rs 145 crore and debt of over Rs 16,000 crore. The plan is to stagger the infusion of Rs 5,000 crore of fresh equity in the next few years. The riders include a more aggressive plan for cost cutting.
A senior civil aviation ministry official said this was one of the key issues discussed during Civil Aviation Minister Praful Patel's meeting with Prime Minister Manmohan Singh on Wednesday to ask for a relief on ATF. Top airline executives like Jet Airways Chairman Naresh Goyal and Kingfisher Airlines Chairman Vijay Mallya also met the PM to highlight the issue.
NACIL will meet all of its proposed investment from the internal and extra budgetary resources, the Budget documents presented in the Parliament today showed. The company had invested Rs 4,136.89 crore in 2008-09. Of the total Plan outlay of Rs 12,164.76 crore for the ministry of civil aviation, the government announced budgetary support of Rs 190 crore for the sector.
The environment ministry has objected to the fact that around 115 hectares (or 7.3 per cent) of total land for the project is mangrove forest. It recently conveyed this to both Cidco and the civil aviation ministry. The matter is now with the prime minister's office. Cidco Vice-Chairman and Managing Director GS Gill said the corporation had sought an appointment with the environment ministry officials to make another presentation on the project in the next 10 days.
India is likely to introduce the performance-based navigation system in its air space by June-July this year, a top civil Aviation Ministry official said. The performance-based navigation will make the longitudinal distance shorter by about three nautical miles from the existing 5-7 nautical miles. The civil aviation regulatory body of the country, DGCA, was also working on reducing the lateral displacement in order to meet the challenge of the growing air traffic in India.
The government said it will appoint an independent regulator for the aviation sector by October this year. After clearance from the Parliament, it would take about three months to set up the regulator. The regulator would look into aspects like aeronautical charges, user development fee, passenger fee and others. Govt is also considering a Greenfield Airport Policy. It will also soon come out with a Vision Document 2020 that will contain plans for airport infrastructure, etc.
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