Post on 22-Apr-2018
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CONTENTS
1. Aviation Sector ............................................................................................. 3
2. Airports
2.1 Bangalore International Airport Limited ............................................... 10
2.2 Cochin International Airport Limited .................................................... 10
2.3 Delhi International Airport Limited………………………………………………………10
2.4 GMR Hyderabad International Airport Limited…………………………………….11
2.5 Mumbai International Airport Limited…………………………………………………11
3. Airlines
3.1 Air India………………………………………………………………………………………………13
3.2 Kingfisher Airlines……………………………………………………………………………….14
3.3 SpiceJet………………………………………………………………………………………………14
3.4 Jet Airways……………………………………………………………………………………….…15
3.5 IndiGo…………………………………………………………………………………………….…..15
4. International News…………………………………………………………………………………..17
5. Cargo ……………..………………………………………………………………………………………..18
6. AERA Appellate Tribunal …………………….…………………………………………………..19
7. Traffic…….…………………………………………………………………………………………………22
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ABBREVIATIONS
AAI Airports Authority of India
ADF Airport Development Fee
AERA Airports Economic Regulatory Authority of India
AERAAT Airports Economic Regulatory Authority Appellate Tribunal
ATF Aviation Turbine Fuel
BCAS Bureau of Civil Aviation Security
BIAL Bangalore International Airport Limited
CAG Comptroller and Auditor General
CAGR Compounded Annual Growth Rate
CAPA Centre for Asia Pacific Aviation
CBEC Central Board of Excise and Customs
CCEA Cabinet Committee on Economic Affairs
CCI Competition Commission of India
CIAL Cochin International Airport Limited
CIDCO City and Industrial Development Corporation
CISF Central Industrial Security Force
COMPAT Competition Appellate Tribunal
CSIA Chhatrapati Shivaji International Airport, Mumbai
DGCA Directorate General of Civil Aviation
DGFT Directorate General of Foreign Trade
DIAL Delhi International Airport Limited
DIPP Department of Industrial Policy and Promotion
FAA Federal Aviation Administration
FDTL Flight Duty Time Limitations
FIA Federation of Indian Airlines
FIPB Foreign Investment Promotion Board
GHIAL GMR Hyderabad International Airport Limited
IATA International Air Transport Association
ICAO International Civil Aviation Organisation
ICPA Indian Commercial Pilots Association
IGIA Indira Gandhi International Airport, New Delhi
MIAL Mumbai International Airport Limited
MoCA Ministry of Civil Aviation
MRO Maintenance Repair Overhaul
PIL Public Interest Litigation
PLF Passenger Load Factor
PMO Prime Ministers’ Office
PNGRB Petroleum and Natural Gas Regulatory Board
PPP Public Private Partnership
RGIA Rajiv Gandhi International Airport, Hyderabad
RTI Right to Information
SEZ Special Economic Zone
UDF User Development Fee
VoA Visa on Arrival
VRS Voluntary Retirement Scheme
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1. AVIATION SECTOR1
1. MoCA has agreed to delegate the authority of giving height clearances for buildings around
airports to local government bodies, making it easier for individual owners and real estate
developers to get the mandatory approval. MoCA has also started creating zones around
airports, giving each zone a specific color code signifying the permissible height.
2. The South Delhi Municipal Corporation has passed a policy amendment by which the IGI
Airport will be taxed at 25% for commercial area, 15% for technical area and 6% for green
area. Currently, IGIA pays around Rs 1.5 crore per year towards property tax. The South
Delhi Municipal Corporation by this amendment is expecting a property tax of Rs 20-25
crore per year.
3. The Federation of Hotel and Restaurant Association of India met Minister of Civil Aviation
Shri Ajit Singh and sought his intervention in the undue delay in issuing completion
certificates and other clearances to hotels in Delhi’s IGIA ‘Aerocity’. MoCA had asked
hoteliers near Delhi Airport to seek security clearance from BCAS as the proximity of these
hotels to the airport has caused concern for security agencies. Security agencies feel that the
hotel rooms are tantalizingly close to the adjoining road that the Prime Minister and
President often take to travel to the international terminal.
4. AERA has approved the levy of Rs 166 as UDF on each passenger taking a domestic flight
and Rs 667 for boarding an international flight from Chennai International Airport from
March 1, 2013 till March 31, 2016. AERA has also approved hike in other airport charges,
including progressively increasing the fuel throughput charges.
5. AAI has got the green nod to extend the 4,000 ft long runway at Lakshadweep’s Agatti
Island by constructing a 1,500 feet long bridge on stilts over the sea and connecting it to the
airstrip. The bridge is expected to be built at a cost o Rs 300 crore which will allow ATRs to
fly to capacity. The current length allows only a 30-40% filled turboprop which no airline
finds viable to operate and recovering the cost of a trip from 30-40% passengers load means
sky-high fares. The Planning Commission has also asked AAI to consider an airport in the
distant Androth Island for enhanced air connectivity for Lakshadweep.
6. MoCA has suggested that Indian carriers charge less for spot fares (ticket bought at short
notice) in order to fill up aircraft, thus increasing their revenues. Indian carriers, on an
average, have load factors of 75-80%, which means at least 20-25% of the seats in an
aircraft are vacant each time they fly.
7. FlightSafety International, one of the world’s leading aviation training companies, has
established operations in India through a consultancy and licensing agreement with
Bangalore based Aviators India. FlightSafety International delivers over a million hours of
flight training each year to pilots, technicians, cabin attendants and aviation professionals
and is a supplier of flight simulators, visual systems and displays to commercial,
government and military organizations around the world.
8. The Karnataka Aerospace Policy 2013-23 aims at making the State a regional hub of the
aerospace industry and the State Government has envisioned a total investment of Rs 24,000
1 Newspaper Clippings
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crore in the sector in its Phase I (2013-18) and another Rs 36,000 crore in the Phase II
(2018-23). The two phases are said to increase the contribution of aerospace to the State
GDP by 28% to 30% in Phase I and up to 32% in Phase II. The scope of the sector will
include aerospace industry as well as developing infrastructure. The policy outlines
strategies such as boosting of exports, onus on micro, small and medium enterprises and a
focus on a cluster approach among others. According to the policy, the South cluster would
include Bangalore, Mysore and Mangalore, the Central cluster would include Davanagere
and Chitradurga and the North cluster would comprise Belgaum and Bidar. The government
also announced the setting up of an Rs 300-crore venture capital fund termed the Karnataka
Aerospace Venture Capital Fund for funding of MSME's and research and development
grants.
9. Hindustan Aeronautics Limited is exploring opportunities in the civilian sector after catering
to Defence sector for several years. Hindustan Aeronautics Limited is looking at civil
aviation’s engine construction, design and development business in addition to MRO
opportunities.
10. Hindustan Aeronautics Limited Ozar Airport, Nashik has received civil certification from
DGCA. Ozar Airport now is an “alternate” airport to Mumbai. Currently, Ahmedabad
Airport is the alternative landing and fuelling site for Mumbai-bound planes, both domestic
and international, which involves additional fuel consumption as it is 40 minutes away from
Mumbai, while Ozar Airport is 20 minutes away.
11. The Security establishments has proposed to extend the no-fly zone over sensitive central
Delhi locations like Rashtrapati Bhavan, PM House and Parliament – termed zone 89 – to
make these areas aerially impregnable. If the zone 89 is increase, it will mean shutting down
of Runway 27, leaving IGIA with two usable runways and severely restricting its traffic
handling potential.
12. According to FICCI-PwC report, a strong market growth, coupled with infrastructure
expansion, will help the Indian Civil Aviation Sector get back on its wings as the economy
recovers. The report added that Indian civil aviation sector has continued to experience high
passenger growth (domestic traffic CAGR is 17% from 2009 to 2011), and if the trend
continues, it could rank among the top three aviation markets in the world by 2020.
However, volatility in fuel process, combined with high tax on ATF and other national
policy-related issues, continued to challenge the sectors growth.
13. Assystem and Maini Precision Products have signed a Memorandum of Understanding to
offer a range of aerospace services to the Indian market. According to the MoU, both
companies are to offer their experience in setting up assembly and/or manufacturing
processes complemented by Maini Precision Products expertise in design, manufacturing,
delivery and testing services on parts and tools.
14. The government on 6th
February said it would focus on developing low-cost airports in
smaller cities as there was a need for more airports to keep pace with the rise in passenger
traffic. The Planning Commission has estimated that passenger traffic in Indian Airport will
increase to 370 million by 2017 from 230-240 million in 2012. The growth in cargo traffic
will also necessitate investments in specialized terminals and equipments. Independent
estimates suggest an additional requirement of 30 airports by 2017 and around 180 airports
in the next decade.
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15. Embraer, Brazilian plane maker, has estimated that the population of private jets in Asia will
increase three times in the next 10 years on the back of increasing affluence. India, with
corporate profitability in the last 5 years, will make up the bulk of orders in the region.
According to Embraer, in the coming decade, the centre of gravity in aviation will move
eastward, most notable to Asia, and to some extent southward, to Latin America because of
strong pace of economic growth and surge of the urban middle class. By 2031, Asia Pacific
and China will be the largest market for aviation, accounting for 34% of revenue passenger
kilometers. Asia Pacific is expected to account for between $32 billion to $48 billion worth
of business jets in the next decade, which corresponds to between 1,035 to 1,580 aircraft
overall.
16. Minister of Civil Aviation Shri Ajit Singh on 9th
February said in order to extend air
connectivity to people in remote areas, 15 new airports under the Greenfield Airports policy
would be constructed, majority of them under the PPP mode.
17. MoCA has decided to replace old Route Dispersal Guidelines mandating the carriers to fly
certain far-flung regions. The new policy was submitted to MoCA on February 15 which
lays down setting up of a Rs 350 - 400 crore Essential Air Service fund, financed partly
from Ministry budget and partly from cess on passengers flying between metros, to aid
airlines that choose to connect remote regions of the country for the first three years. The old
Route Dispersal Guidelines categorized the seven metro cities in Category I, the North-East,
Lakshadweep and Andamans in Category II and all other small cities in category III. It is
mandatory for airlines to deploy 50% of their Category I capacity to be used on Category III
routes and 10% on Category II routes. According to the new policy, commercially unviable
Category III routes will be offered in auction to airlines and the airline requiring the least
financial assistance would win it. There will be just one such slot on each route. If the traffic
grows on a route, after a lock-in period, the same route will be re-auctioned without a
subsidy.
18. According to Member (Operations) AAI, government could give the entire air cargo
operation to a private company in the proposed second phase of the Chennai airport
modernization plan.
19. Cidco has made a fresh offer of a compensation of Rs 3.50 crore per hectare or 22.5%
developed land to the project affected persons. Cidco is the nodal agency for the
development of Navi Mumbai International Airport.
20. MoCA is considering a proposal to cap the highest and the lowest ticket prices, which the
airlines would not be allowed to cross. The move, which is being formulated under section 5
of the Aircraft Act 1937, is aimed at ensuring that carriers do not bleed themselves out of
business by undercutting each other’s fare offerings. The limit, which could change every
month, will be decided on the basis of the airline’s monthly financial numbers and could
also vary according to airline.
21. According to research Company RNCOS’s report titled ‘Indian Aerospace Industry
Analysis’, India is the 9th
largest aviation market in the world. The civil aviation market is
expected to register more than 16% compound annual growth during 2010-13.
22. Travel Agents Association of India and Travel Agents Federation of India has decided to file
a review petition against the Supreme Court order barring them from levying a transaction
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fee on the air tickets sold by them. In the interim, the agents will seek restoration of status
quo as was prevalent prior to the 23 January apex court order, when travel agents was paid a
transaction fee of 6% by low-cost airlines and a commission fee of 1% by full service
carriers such as Air India and Jet Airways.
23. The Andhra Pradesh Government has proposed constituting a high-level board headed by
the Chief Minister to implement the new state Civil Aviation Policy.
24. AAI have sanctioned the construction of new Air traffic Control Tower at a total cost of Rs.
240 crores at Kolkata Airport. The height of this tower would be around 86- meters. The
new ATC tower has become more essential as some areas of Apron and taxiway of airports’
new Integrated Passenger Terminal building are out of tower’s visual coverage. This facility
would enable traffic controllers to have 360 degree view of the operational area both the city
and air side).
25. According to CAPA report titled ‘Decisive action on Air India’s future’, Air India may
report a small operating profit for the 2012-13, but the net result will remain significantly in
the red. The small operating profit will depend on the impact of the Boeing 787 grounding
and market conditions in the fourth quarter. CAPA in the report said that the government
should allow an overseas carrier to invest as much as the permitted 49% in Air India so that
it is not at a disadvantage compared with peers.
26. MoCA has decided that it will not allow foreign airlines to reach new destinations in India if
they cannot offer corresponding fresh airports for Indian carriers to land. This will protect
Indian carriers from the fast expanding competition of international carriers, especially from
single-destination countries like Etihad, Emirates, Oman, Qatar and Singapore.
27. MoCA on 13th
February agreed to conduct an aeronautical study that will help ease height
restrictions for buildings in the Bandra – Kurla Complex and Wadala in Mumbai as both the
area fall within 4km of the airport radius. Existing norms permit the height of the buildings
up to 58 m (19 floors), depending on their proximity to the runway. MoCA has imposed the
restriction to ensure that high-rises do not interfere with radar signals or the flight path. The
Mumbai Metropolitan Region Development Authority has sought increasing the permissible
height to 90 m (approx 30 floors) for Bandra – Kurla Complex and 210 m (approx 70 floors)
for Wadala. It claims that sophisticated radar and navigation systems exist to ensure the
airspace around aerodromes can be maintained free of obstacles, despite easing the height of
restrictions.
28. The rating Agency ICRA in its report has said that the domestic aviation industry is set to
grow at 11% in the medium term as some of the cyclical variables become less spiteful. The
report said that the higher cost of travel and the impact of the economic slowdown have
affected passenger traffic growth during the current year, which over the past 5 years has
grown at a CAGR of 9.2%. According to agency, after years of steady increase in capacities,
the capacity addition declined 3.2% during the current fiscal largely due to the grounding of
Kingfisher Airlines and route rationalization by other carriers.
29. AAI on 19th
February said that if Kingfisher Airlines clear around Rs 117 crore of the total
Rs 390 crore it owes to the Authority and provide firm commitment on clearing the
outstanding, than AAI may allow Kingfisher Airlines to fly.
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30. Delhi High Court on 19th
February rejected Pilots and Cabin Crew plea to stay MoCA’s
order extending the flight duty time limitation of Air India.
31. Minister for Civil Aviation Shri Ajit Singh on 20th Feb said that the Bill to replace DGCA
with Civil Aviation Authority with full operational and financial autonomy is likely to be
tabled in Parliament in the Budget session. The Civil Aviation Authority will be headed by a
Chairperson who will be supported by Director-General and seven to nine members.
Chairperson, DG and Members will be appointed by the Central Government on the
recommendation of a Selection Committee. In this backdrop, the Civil Aviation Authority
would take over the responsibilities of the DGCA in areas like air safety, airspace
regulation, setting aviation standards, licensing of airlines, pilots, air traffic controllers and
consumer protection. It would have financial and operational autonomy to take expeditious
decisions on matters relating to a range of activities. It will have power and authority to call
for information including financial information and conduct investigations, power to issue
directions, power of seizure, power to punish any person, operator, company or a
Government Department, if they fail to comply with its orders or directions and the
punishment will be in the form of fine as prescribed under the Rules.
32. Air Asia has proposed setting up an airline in India named ‘Air Asia India’ in a joint
venture with Tata Sons Ltd. and Telestra Tradeplace with an investment of $30 - $60 million
in the fourth quarter in 2013. Air Asia has applied to the FIPB to take a 49% stake in the
venture which will be taken up on March 6. If the proposal is approved, the airline operators
would then approach the DGCA for a permit to start operations. Tata Sons will hold 30% in
the joint venture but will not have any operating role in the airline, Air Asia will hold 49%
stake and Hindustan Aerospace, a group company of Telestra Tradeplace, will hold 21%.
The proposed airline would operate from Chennai with 3-4 A320s and would focus on
providing domestic connectivity to Tier- II and Tier-III cities.
33. The Special Court for Economic Offences, Bangalore on 20th
Feb issued summons to
Kingfisher Airlines Chairman Vijay Mallya in a criminal case filed by the Income Tax
Department for not remitting to the government tax deducted at source. Kingfisher Airlines
has not remitted Rs 74.94 crore deducted as TDS from salaries of employees in the financial
year 2009-10 and interest of Rs 23.70 crore for skipping the deadline.
34. MoCA has proposed a uniform import duty on private aircraft irrespective of whether it is
used for private or unscheduled commercial operations and has written to the finance
ministry seeking uniform levy. Currently, an aircraft imported for personal use attracts
import duties between 19% and 21%, while an aircraft imported for commercial operations
attracts duties of 2.5 - 3% only as it is not subject to countervailing duty and special
additional duty which are equivalent of taxes (like excise and VAT) on domestically
manufactured items.
35. Andhra Pradesh new Civil Aviation Policy has proposed setting up a State Civil Aviation
Board aimed at promoting development of non-hub airports across the state. The board will
be chaired by Chief Minister N. Kiran Kumar Reddy to oversee development of new airports
in tier II cities. The Board through a policy framework intends to promote regional
connectivity between tier II cities by developing airports via the PPP mode. To this end, 6
cities have been identified as potential sites for Greenfield Airports in Nizamabad, Nellore,
Kurnool, Ramagundam, Tadepalligudem and Kothagudem. The new policy proposes to give
fiscal incentives to airport developers a least for 5 years from the date of commissioning of
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the infrastructure project. The incentives could include exemption from property tax payable
to civic bodies, reduction in value added tax and state sales tax on TAF. For hassle free
clearances of airport development, it was proposed to have a single window clearance
through a nodal agency for all state government approvals. The state government could also
act as a facilitator to promote cross-development collaboration with tourism, commerce,
revenue and other departments.
36. 15 infrastructure companies such as Cochin International Airport, Gammon Infrastructure,
Reliance BSCPL, SREI Infrastructure Finance and GMR Infrastructure have submitted bids
for the Kushinagar International Airport in eastern UP. The Rs 354 crore airports is one of
the first Greenfield Airport project in the country for which the Centre has agreed to provide
a Viability Gap Funding of 40% (Rs 140 crore). The project will be built under the PPP
mode on a Design, Build, Finance, Operate, Transfer (DBFOT) basis.
37. Gujarat State Government is planning to pump in around Rs 141 crore to promote aviation
in the state in 2013-14. Around Rs 50 crore will be earmarked for developing an aircraft
hangar at Ahmedabad, developing airstrips and for capital support to new Special Purpose
Vehicles.
38. The Government is planning to issue directions that an aircraft de-registered by DGCA can
leave the country even if the company that has imported the aircraft has unpaid dues.
39. Minister of Civil Aviation Shri Ajit Singh on 25th
February decided to withdraw all
International Bilateral Traffic Rights allocated to Kingfisher Airlines between 2008 and
2011 on account of non-utilisation by the airline. Under the said rights, the Kingfisher
Airlines were allowed to fly the sky of 8 countries. The Civil Aviation Minister has decided
to make these International traffic rights available to other carriers for use. This would give
additional availability of approximately 25,000 seats per week for use by other Indian
carriers to these 8 countries, some of which are much in demand by these carriers. Similarly
it has also been decided to withdraw the domestic slots which were allocated to Kingfisher
Airlines at different airports for domestic flights. AAI has been directed to make these slots
available to other domestic carriers as per their demand.
40. Supreme Court on 25th
February issued a contempt of court notice to DGCA for failing to
comply with its orders for effective implementation of flight safety norms, especially those
concerning pilots flying hours. The apex court had directed DGCA in May 2011 to expedite
the process of bringing new Civil Aviation Regulations to minimize accidents caused by
pilot fatigue. DGCA had notified new regulations which came into effect from February
2012 but the airlines have accused DGCA of not ensuring their implementation. The new
rules mandated that an airline must take into account a pilot’s “duty time” as against just
“flight time” which means that a pilot’s duty hours would include flight time spent as a
passenger to report for duty.
41. According to forecast by Airbus, airliners from Asia Pacific region will lead the global
demand for larger and more fuel efficient planes in next 20 years. The companies are
expected to take delivery of around 9,870 new passenger and cargo aircraft including 3,840
wide-body aircraft, valued at $1.6 trillion. This would be 35% of all new aircraft deliveries
worldwide over the next two decades, ahead of Europe and North America. In terms of
value, Asia Pacific region would account for 40% of the global market for new airliners,
reflecting the higher proportion of wide-body aircraft required by Asia Pacific carriers.
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42. The Airport Traffic Management – Air Navigation System (ANS) – will now be designated
as an independent entity to pre-empt the possibility of mid-air collisions. This would leave
AAI to concentrate on development of airport infrastructure. The last five years have
witnessed at least 118 cases of air-prox – a term used to describe a situation in which two
aircraft come dangerously close to one another.
43. The Central Government has given in-principle clearance to set up Greenfield Airports in
Aranmula and Kannur in Kerala. KGS Group, a Chennai-based company, will set up the
KGS Aranmula International Airport which will be the first private international airport in
the Kerala region and is planned to be built on about 700 acres of land and the runway
length would be 3100m. The public limited company, Kannur International Airport Limited,
will build Kannur International Airport on a 3,000-acre site on PPP basis.
44. MoCA is planning to negotiate for additional seat entitlement with the governments of
Singapore and Sri Lanka, enabling Indian carriers to add more flights to these countries.
45. The Economic Survey 2012-13 tabled in Parliament on 27th
February stated that Air India is
likely to post an operating profit in 2012-13. The survey noted that AI has taken several
initiatives towards cost cutting and revenue enhancement during the year as per its
turnaround plan. This includes route rationalization, phasing out and grounding of old fleet,
freezing of employment in non-operational areas, leveraging assets of the company to
increase MRO revenue and revenue from the real estate properties. The Economic Survey
also called for rationalizing the tax regime for ATF.
46. The Union Budget 2013-14 has announced concessions for the MRO industry. The budget
proposed extending the period for consumption/installation of parts and testing equipment
for the MRO industry to one year from three months earlier. In addition, the exemption of
basic customs duty for parts and testing equipment for MRO of aircraft has been extended.
The budget has further proposed raising duty-free allowance on jewellery for an Indian male
passengers to Rs 50,000 from Rs 10,000 at preset and to Rs 1,00,000 from Rs 20,000 from a
women passenger. The Budget has also announced Rs 5,000 crore additional equity infusion
for Air India in the next fiscal as part of its turnaround plan.
ATF PRICES
1. Jet fuel prices were hiked on 28th
February by 3.8%. The price at Delhi airports was hiked
by Rs 2,519.83 per kl to Rs 70,080.87 per kl from midnight.
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2. AIRPORTS1
1. Minister of Civil Aviation Shri Ajit Singh on 9
th February inaugurated new passenger
terminal at Puducherry Airport. The airport is built at a cost of Rs 30 crore and spreads over
an area of 2,350 sq mt. The airport is capable of handling peak hour requirement of 75
arriving and 75 departing passengers with annual handling capacity of 1.2 lakh passengers
with the state-of-the-art facilities.
2.1 Bangalore International Airport Pvt. Ltd.2
1. Bengaluru International Airport Area Civil Defense Division No. 22 along with Directorate
General Defense, GoK and neighboring villages organized a rally on 7th
February to create
awareness about Civil Defense services and disaster preparedness amongst the public.
BIAL Civil Defense Unit no. 22 has emerged as the best unit in Karnataka consecutively for
the last two years, their initiatives and growth has been well recognized. This is the only
Civil Defense Unit in the country led by an airport, meant not only for airport but for the
community around it.
2. BIAL Corporate Communications team has bagged 4 awards at the Public Relations Council
of India (PRCI) annual conclave held in Hyderabad on February 23rd 2013. The corporate
communications team was recognized for the following: CSR documentary film – Joy of
Giving Week (Gold), Corporate event – BIAL 4th Anniversary celebrations (Gold),
Multimedia campaign – give blood give life (Silver) and PR media case study for taxi
launch event held at the airport (Bronze).
2.2 Cochin International Airport Pvt. Ltd.3
1. CIAL has registered a 5% increase in the volume of cargo handled during April - December
2012. The airport handled 34,305 tonnes of cargo against 32,950 tonnes in the same period
a year ago. Of this, international cargo accounted for 28,660 tonnes (exports 21,265 tonnes
and imports 7,395 tonnes) and domestic cargo 5,645 tonnes. General Cargo including
electronic goods, spices, rubber products and ayurvedic medicine accounted for 35 - 40 % of
the total volume. Setting up of a perishable Cargo Centre with a capacity to store 25,000
tonnes and establishment of plant quarantine station at the airport also enabled quick
turnaround of perishable cargo.
2.3 Delhi International Airport Pvt. Ltd.4
1. IGIA has become the first and only airport in India to win prestigious ‘International Safety
Award’ from British Safety Council. The award benchmarks health and safety performance
of an organization on an international level to recognize the leaders in this field.
2. IGIA has implemented biometric ID card system for 2,000 drivers at T3 from 1st March to
provide safe and secure journey to the passengers in general and the women passengers in
1 Newspaper Clippings
2 Information provided by BIAL
3 Newspaper Clippings
4 Newspaper Clippings
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particular. Now only those drivers of yellow-black taxis possessing biometric ID cards will
be allowed inside the airport. The biometric cards contain the driver’s name and other
details. When a passenger is picked up, a receipt will be given to cab driver and another
copy of the slip will remain with the traffic police for future as record. Apart from the safe
drive, the new system will also control refusal, over charging and misbehavior by the taxi
drivers. To fix the fare, the traffic police have divided the city into several zones and the fare
has been fixed only according to distance and destination as per STA rates. The system will
take thumb impressions of the drivers and would have to be swiped to get entry into the taxi
lane.
3. DIAL has issued a Public Notice inviting Expression of Interest from interested parties to
finance, design, develop and construct facilities at its proposed Cargo Village Project. DIAL
plans to have the cargo village in line with international practices, which will facilitate air
cargo trade and offer freight forwarders with on-airport warehousing and office facility. The
total area of the cargo village site will be 1,59,000 sq m which is in close proximity of the
existing Cargo Terminals. DIAL aims to develop the airport into a major hub for cargo
handling.
4. IGIA on 2nd
February created a new record by handling 75 flight movements per hour,
including both arrivals and departures between 11am and 12pm. The two runways 28/10 and
29/11 were used in mixed mode and the secondary runway 27/09 was used for departures.
5. DIAL has become the first airport in the world to receive ISO 22301:2012 certification from
British Standards Institution after the guidelines and assessment set by the International
Origination of Standardization. DIAL has earned the certification from British Standards
Institutions with its capability to handle emergency situations and ensure minimal disruption
in passenger service at the airport.
2.4 GMR Hyderabad International Airport Pvt. Ltd.1
1. Tiger Airways has collaborated with Via.com for corporate fare distribution agreement at
RGIA. The corporate fares are available from 26 Feb 2013 which allows greater
connectivity and more value for money to business travellers in India. The corporate
package include free check-in baggage of up to 25 kg, priority boarding, as well as change-
fee waivers for any flight changes up to four hours before departure, however fare
differences apply.
2.5 Mumbai International Airport Pvt. Ltd.2
1. MIAL has entered into a 10-year partnership with SITA, the world's leading specialist in air
transport communications and information technology. As a part of the agreement, SITA
will provide its world-class passenger handling technology to CSIA, the main gateway to
Mumbai and India’s second busiest airport. The portfolio of services that will be provided
primarily includes SITA AirportConnect Open, the common-use passenger system which
includes common-use check-in and boarding, along with self-service kiosks. SITA will also
provide its renowned baggage reconciliation system, which ensures the right bag is on the
right plane with the right passenger. SITA will fully integrate the passenger services with the
1 Information provided by GHIAL
2 Newspaper Clippings
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existing airport management system it supplies, delivering benefits to both airlines and
passengers. As part of the program, the new systems will be used at the existing domestic
terminals 1A and 1B and also in the state-of-the-art integrated terminal T2. SITA
AirportConnect Open will be in place at more than 600 counters and 90 common-use self-
service kiosks will be spread across the international and domestic departure areas at T2. For
the baggage system, more than 120 hand held terminals will keep track of passengers’ bags.
Through use of these new systems, MIAL will be able to better manage the huge increase in
passenger volume expected in the next few years.
2. MIAL has been given the go-ahead to landscape the area under the 700-metre Vile Parle
flyover, Mumbai and create two new U-turn points between the flyover’s columns.
3. MIAL has entered into a 10-year contract with Wipro Infotech for providing world-class IT
services for the new integrated terminal “T2”. Wipro will be responsible for providing
managed services across the entire IT landscape at MIAL and deliver high availability and
operational efficiency across all the critical airport processes.
4. MIAL has awarded the food and beverage concessions to both Lite Bite Food Pvt Ltd &
Devyani International Limited to operate at the “all new" Terminal 2 at CSIA.
5. MIAL on 8th
February bagged the prestigious ‘Golden Peacock National Quality Award
2012’. This award lauds MIAL’s efforts and contribution in raising standards in quality
service. In 2011, CSIA won a special commendation for Golden Peacock Occupational
Health & Safety Award.
Page 13 of 24
3. AIRLINES1
Statistics of Domestic Airline in India as of January 2013:
Market Share for January 2013
Fleet Size
Indian Cities Flying to
No. of Daily flights
No. of pilots
Air India 20.3% 106 51 450 1,700
Jet Airways 20.0% 99 50 500 1,400
Jet Lite JetLite merged with JetKonnect on March 25, 2012
Jet Konnect 6.2% 15 54 430
IndiGo 27.4% 61 33 391 900
GoAir 7.6% 13 21 100 80
SpiceJet 18.4% 43 45 330 550
Kingfisher Airlines 0.0% 13
(in Rs Crore)
2011-12 2012-13
Revenue Net Profit/Loss Revenue Net Profit/Loss
Air India 14,739
(provisional) -7,853
16,600 (Full year
estimates)
(-4270) (Full year
estimates)
Jet Airways 15,581 -1,236 4,251
(Quarter 3) 85
(Quarter 3)
Jet Lite 1,904 -184 NIL NIL
Jet Konnect 519
(Quarter 3) 8
(Quarter 3)
IndiGo 5,552 -88
GoAir 1,461 -134
SpiceJet 3,998 -605 1,602
(Quarter 3) 102
(Quarter 3)
Kingfisher Airlines 5715 -2328 200
(Quarter 2) (755)
(Quarter 2)
3.1 Air India (AI)
1. AI has paid Rs 75 crore to GHIAL and Rs 340 crore to DIAL as landing and parking
charges. AI still owes Rs 375 crore to GMR Group.
2. Alliance Air will start daily flights from Kangra to Delhi from March 31.
3. AI has signed a five year contract with Sutherland Global Services to provide call centre
operations for Air India from February 1.
4. AI Board on 14th
February approved the sale of 3 properties – one each at Kolkata, Chennai
and Coimbatore. The sale of another two properties, including 4 apartments on Peddar Road,
Mumbai, each valued at more than Rs 25 crore and a plot in Gurgaon, had earlier been
1 Newspaper Clippings
Page 14 of 24
cleared by the AI Board. AI is planning to raise more than Rs 5,000 crore by selling its
properties worldwide by 2016.
5. AI on 20th
February offered special fares and discounts of up to 40% on one-way regular
fares on domestic flights.
6. The Cabinet Committee on Economic Affairs on 15th
February cleared the proposal for
restructuring the pay scales of AI’s pilots, engineers and cabin crew which will now be fixed
as per the industry norms and is likely to save over Rs 320 crore annually.
7. AI has identified some more properties at Chennai, Coimbatore and Kolkata, residential plot
at DLF Phase –III Gurgaon, a residential apartment in Kolkata and 4 unoccupied flats in
Mumbai to monetise in order to raise Rs 5000 crore as part of its turnaround.
3.2 Kingfisher Airlines (KFA)
1. KFA employees on 4
th February decided to move court for winding up the company to
recover their salary dues. KFA Chairman Vijay Mallya met the employees and said that the
efforts to revive the airline were underway, but did not commit on any date for disbursal of
salary.
2. KFA has posted loss of Rs 755 crore in Quarter 3 ending December 31. In the quarterly
review report, it was mentioned that the accounting method used by the airline to calculate
costs incurred for aircraft maintenance and repairs was “not in accordance with generally
accepted accounting standards prevalent in India”. If the generally accepted accounting
standards were used, the loss for the quarter would have been Rs 1,090 crore.
3. KFA lenders on 12th
February have decided to start the recovery process for its Rs 7,500
crore loans given to the airline after the company failed to come up with a viable business
plan to keep afloat. The lenders hope to recover up to Rs 1,000 crore of their dues by
monetising the securities in the March quarter. KFA parent company United Breweries on
15th
February offered to KFA lenders to reduce their exposure by adjusting the outstanding
debts, albeit partially, against the proceeds earned from the stake sale in another subsidiary
United Spirits Limited to Diaego Plc.
4. KFA has been informed by IATA that its membership will be terminated if the airline fails
to fly again. KFA membership expires on 31st March 2013.
5. A week after KFA lenders announced plans to initiate recovery proceedings against KFA to
recover their dues, KFA paid salaries for the month of June 2012 to a section of its
employees and approached DGCA seeking licence renewal.
3.3 SpiceJet
1. SpiceJet has started air service from Gaggal Airport in Kangra district from February 15.
SpiceJet has added new flights connecting Mumbai to Nanded from February 14 and
Mumbai to Hubli from February 15. SpiceJet will start daily flights from Kangra to Delhi
from March 31.
Page 15 of 24
2. SpiceJet is connecting Sharjah with Varanasi from March 7 and Sharjah with Lucknow from
March 11 through direct flights. SpiceJet will also connect Lucknow with New Delhi.
3. SpiceJet on 4th
February said more than 9.7 million shares pledged by Kal Airways have
been released. Kal Airways held 156.5 million shares pr 32.32% stake in SpiceJet as of
December quarter.
4. SpiceJet has sought clearance from MoCA to import 3 Boeing 737 aircrafts.
3.4 Jet Airways
1. Jet Airways is planning to increase capacity by 10-12% by next year. It will add around 6
narrow-bodied aircraft in addition to 12 B-777 planes by the end of the next third or fourth
quarter. Jet Airways has also pulled out of loss making routes to increase profitability.
2. Jet Airways has signed a global maintenance agreement valued at $48 million with
European turboprop aircraft manufacturer, ATR.
3. The board of directors of Jet Airways has given its in-principal approval to 24% stake sale at
approx. $300 million to Etihad Airways. The company is also believed to have devised a
way to effect the transfer of shares by routing it via an Indian subsidiary of Jet form the
holding company Tailwinds Limited, having a shareholding of 79.99%, registered in the Isle
of Man.
4. JetLite will connect Gorakhpur with Delhi from February 11. The flights were suspended in
December 2012 due to inclement weather conditions.
5. Jet Airways on 19th
February slashed domestic airfares on 2 million seats by more than half
for travel through the year, seeking to attract passengers and raise an immediate cash buffer
of up to Rs 600 crore. Jet Airways has put 20 lakh seats on over 450 daily flights across 57
destinations on sale from February 19 till February 24.
6. Centrum Direct has entered into a tie-up with Jet Airways to offer forex solutions on the
Jetairways.com site. Every passenger booking an international ticket on Jetairways.com, can
get his foreign exchange needs efficiently handled by Centrum Direct. The passenger can
choose online from a variety of forex options including currency, travellers cheques or pre-
paid forex travel card. Centrum Direct will get in touch with the passengers and arrange to
deliver the forex to the passengers as per his convenience.
3.5 Indigo
1. IndiGo is planning to from a subsidiary for regional operations, with an initial fleet strength
of 18-20 ATR turboprops. IndiGo is also in discussion with ATR aircraft manufacturer for
acquiring small turboprop aircraft.
2. MoCA has approved the proposal of IndiGo to import 11 Airbus A-320 aircraft.
3. IndiGo is launching 8 new flights on its domestic network from March 1. It will operate its
fifth daily and direct flight between Delhi and Chennai, second daily and direct flight
Page 16 of 24
between Delhi and Kochi, fourth daily and direct flight between Mumbai and Chennai,
fourth daily and direct flight between Mumbai and Kolkata. On the international sector,
IndiGo launched its first daily and direct flights between Thiruvananthapuram and Dubai,
second daily and direct flight between Mumbai and Dubai and new daily and direct flight
between Chennai and Singapore.
Page 17 of 24
4. INTERNATIONAL NEWS1
1. Thai Smile is planning to launch four international routes connecting India and Malaysia
from March 31, 2013. This will include Bangkok - Ahmedabad (2 weekly), Phuket – Delhi
(2 weekly), Phuket – Kuala Lumpur (4 weekly), Phuket – Mumbai (2 weekly).
2. Air Asia has started daily flights connecting Kula Lumpur and Kolkata from 25th
February.
3. Changi International Group is building a fourth terminal ‘Terminal 4’ at the Changi
International Airport at a cost of $1.05 billion to cope with increasing tourism and air traffic.
Terminal 4, with a planned capacity of 16 million passenger movements a year, would raise
Changi Airports handling capacity to 82 million a year and the development of the proposed
Terminal 4 would be completed by 2017. Terminal 4 would primarily handle narrow body
aircraft and be designed to enable quick turnaround of flights.
4. All Nippon Airways is planning to become the gateway carrier for India, aiming for US-
bound passengers and take them to their destination via its transit hub in Tokyo. A gateway
carrier picks up traffic from other countries and routes it through their hubs.
5. Etihad Airways on 26th
February purchased three pairs of slots at Heathrow Airport from Jet
Airways for $70 million.
6. Virgin Atlantic has announced launching of its first-ever domestic flight service Little Red
connecting Mumbai and Delhi with Manchester, Edinburg and Aberdeen.
1 Newspaper Clippings
Page 18 of 24
5. CARGO1
1. Mangalore International Airport’s Air Cargo Complex on January 31 received the customs
notification from the Union Government. In its notification, the Finance Ministry stated that
it has allowed ‘unloading of imported goods and the loading of export goods or any class of
such goods’ at Mangalore Airport. The notification will help export agricultural,
horticultural and fisheries products from Mangalore and strengthen the economy.
1 Newspaper Clippings
Page 19 of 24
6. AERA APPELLATE TRIBUNAL1
1. Appeal No. 06/2012 (with IA No. 10/2012 for stay) of Federation of Indian Airlines (FIA)
Vs. AERA & Anr. (DIAL) came up for hearing on 15th February 2013. The FIA counsel
made an oral application to join AAI and MoCA as parties. The Appellate Tribunal accepted
the oral request and listed the matter for hearing on 4th
March 2013.
2. Appeal No. 11/2012 (with IA No. 11 & 21) of Lufthansa German Airlines & Ors. Vs.
AERA & Anr. (DIAL) came up for hearing on 8th
February 2013 where the matter was listed
for 15th February 2013. On 15th
February hearing, the matter was listed for 4th
March 2013.
3. Appeal No. 10/2012 (with IA No. 14 & 23) of Delhi International Airport Pvt. Ltd. (DIAL)
Vs. AERA came up for hearing 8th February 2013 where the matter was listed for 15th
February 2013. On 15th
February hearing, the matter was listed for 4th
March 2013.
4. Appeal No. 12/2012 of International Air Transport Association (India) Pvt. Ltd. Vs. AERA
& Anr. (DIAL) came up for hearing on 8th February 2013 where the matter was listed for
15th February 2013. On 15th
February hearing, the matter was listed for 4th
March 2013.
5. Appeal No. 03/2013 of Federation of Indian Airlines (FIA) Vs. AERA & Anr.
(DIAL/AAI/MCA) came up for hearing on 8th February 2013 where the matter was listed
for hearing on 14th February 2013. On 14th February hearing, the matter was listed for 21st
March 2013.
6. Appeal No. 01/2012 (with IA No. 07/2012 for stay) of Federation of Indian Airlines (FIA)
Vs. AERA & Anr. (DIAL) came up for hearing on 14th
February 2013 where the matter was
listed for 21st March 2013.
7. Appeal No. 03/2012 (with IA No. 09/2012 for stay) of Federation of Indian Airlines (FIA)
Vs. AERA & Anr. (MIAL) came up for hearing on 14th
February 2013 where the matter was
listed for 21st March 2013.
8. Appeal No. 07/2012 of Delhi International Airport Pvt. Ltd. (DIAL) Vs. AERA came up for
hearing on 14th February 2013. On 14th
February hearing, the matter was listed for 21st
March 2013.
9. Appeal No. 07/2011 of Bangalore International Airport Pvt. Ltd. (BIAL) Vs. Union of India
& Ors. came up for hearing on 15th February 2013. The Appellate Tribunal disposed off the
appeal with the direction to the AERA to complete the exercise of determination of tariff
and while doing so, the AERA would give opportunities to all the stakeholders to raise all
the plea and contentions and consider the same. The impugned orders herein would not
come in the way of that exercise. The Appellate Tribunal requested AERA to complete the
determination exercise as expeditiously as possible. The Appellate Tribunal have taken this
view as it is of the firm opinion that it would not be proper to entertain the appeals on
different stages of determination of tariff and to give the finality to the questions of final
determination of tariff.
1 AERA Appellate Tribunal – Cause List and Orders
Page 20 of 24
10. Appeal No. 12/2011 (with IAs No. 05 & 06/2013) of Bangalore International Airport Pvt.
Ltd. (BIAL) Vs. AERA & Anr. came up for hearing on 15th February 2013 where the matter
was listed for hearing on 14th
March 2013.
11. Appeal No. 08/2011 of GMR HIAL Vs. AERA & Anr. came up for hearing on 15th
February 2013. The Appellate Tribunal disposed off the appeal with the direction to the
AERA to complete the exercise of determination of tariff and while doing so, the AERA
would give opportunities to all the stakeholders to raise all the plea and contentions and
consider the same. The impugned orders herein would not come in the way of that exercise.
The Appellate Tribunal requested AERA to complete the determination exercise as
expeditiously as possible. The Appellate Tribunal have taken this view as it is of the firm
opinion that it would not be proper to entertain the appeals on different stages of
determination of tariff and to give the finality to the questions of final determination of
tariff.
12. Appeal No. 10/2011 of GMR HIAL Vs. AERA & Anr. came up for hearing on 15th
February 2013. The Appellate Tribunal disposed off the appeal with the direction to the
AERA to complete the exercise of determination of tariff and while doing so, the AERA
would give opportunities to all the stakeholders to raise all the plea and contentions and
consider the same. The impugned orders herein would not come in the way of that exercise.
The Appellate Tribunal requested AERA to complete the determination exercise as
expeditiously as possible. The Appellate Tribunal have taken this view as it is of the firm
opinion that it would not be proper to entertain the appeals on different stages of
determination of tariff and to give the finality to the questions of final determination of
tariff.
13. Appeal No. 09/2011 of Cochin International Airport Pvt. Ltd. (CIAL) Vs. AERA came up
for hearing on 15th February 2013. The Appellate Tribunal disposed off the appeal with the
direction to the AERA to complete the exercise of determination of tariff and while doing
so, the AERA would give opportunities to all the stakeholders to raise all the plea and
contentions and consider the same. The impugned orders herein would not come in the way
of that exercise. The Appellate Tribunal requested AERA to complete the determination
exercise as expeditiously as possible. The Appellate Tribunal have taken this view as it is of
the firm opinion that it would not be proper to entertain the appeals on different stages of
determination of tariff and to give the finality to the questions of final determination of
tariff.
14. Appeal No. 11/2011 of Cochin International Airport Pvt. Ltd. (CIAL) Vs. AERA came up
for hearing on 15th February 2013. The Appellate Tribunal disposed off the appeal with the
direction to the AERA to complete the exercise of determination of tariff and while doing
so, the AERA would give opportunities to all the stakeholders to raise all the plea and
contentions and consider the same. The impugned orders herein would not come in the way
of that exercise. The Appellate Tribunal requested AERA to complete the determination
exercise as expeditiously as possible. The Appellate Tribunal have taken this view as it is of
the firm opinion that it would not be proper to entertain the appeals on different stages of
determination of tariff and to give the finality to the questions of final determination of
tariff.
Page 21 of 24
15. Appeal No. 01/2013 of Business Aircrafts Operators Association (BAOA) Vs. MIAL &
Anr. (AERA) came up for hearing on 22nd February 2013. On hearing, the matter was listed
for 7th March 2013.
16. Appeal No. 02/2013 of Mumbai International Airport Pvt. Ltd. (MIAL) Vs. AERA came up
for hearing on 22nd February 2013. On hearing, the matter was listed for 21st March 2013.
Page 22 of 24
7. TRAFFIC1
1. According to data from DGCA, the Indian air passenger traffic continued to shrink,
dropping nearly 4% in January. India’s domestic airlines carried 5.13 million passengers in
January 2013 against 5.33 million in January 2012, a reduction of 3.77%.
2. The market share of scheduled domestic airlines for the month of January 2013 is:
3. According to IATA Air Freight Market Analysis January 2013, air freight markets stabilized
in January, after strong growth during the last months of 2012. The seasonally adjusted
levels of air freight show a moderation in the 2012 year-end growth spurt, with January
volumes contracting on the December expansion. Global FTKs were up 5.0% in January
compared to a year ago, after being down 0.9% in December.
4. According to ACI’s preliminary traffic figures for 2012, Global passenger traffic increased
by 3.9% in 2012. While the world's top international airports in North America and Europe
posted more modest gains in passenger traffic, air transport markets in emerging economies
continue to show buoyant activity. Double-digit growth rates in passenger traffic were
observed in Istanbul (20.2%), Jakarta (14.4%), Dubai (13.2%) and Bangkok (10.6%) in
2012. Moderate growth of 2.5% was observed in December of 2012 as domestic passenger
markets recoiled in Europe, Latin America, Africa and North America. Conversely, the
Middle East and Asia-Pacific persistently post strong gains in international passenger traffic
with growth of 12.3% and 9.0% respectively for the month of December.
An overall decline of 1.3% was registered in airfreight for the month of December. Europe,
Latin America & Caribbean, North America and Asia-Pacific experienced declines of -2.7%,
-2.6%, -1.5% and -1.2% respectively. While the world's top airfreight hubs, Hong Kong and
Memphis, achieved growth of 2.2% and 2.5% respectively, 57% of the top thirty airports in
terms of airfreight volume were in decline in 2012.
1 ACI, IATA, Press Information Bureau and Newspaper clippings
Jet Airways, 20.0%
Jet Konnect, 6.2%
Kingfisher, 0.0%
Spicejet, 18.4%
GoAir, 7.6%
IndiGo, 27.4%
Air India (Dom), 20.3%
Page 23 of 24
5. Foreign Tourist Arrivals during the Month of January 2013 was 6.99 lakh as compared to
6.81 lakh during the month of January 2012 and 6.23 lakh in January 2011. There has been a
growth of 2.6% in January 2013 over January 2012 as compared to a growth of
9.4% registered in January 2012 over January 2011.
6. Foreign Exchange Earnings during the month of January 2013 were Rs 10,398 crore as
compared to Rs 8,623 crore in January 2012 and Rs.5,777 crore in January 2011. The
growth rate in rupee terms in January 2013 over January 2012 was 20.6% as compared to
49.3% in January 2012 over January 2011.
7. The Visa on Arrival scheme of the government registered a growth of 24.4 % in January
2013 as compared to January 2012. A total number of 1,690 Visa on Arrivals were issued in
January 2013 as compared to 1,359 Visa on Arrivals issued in January 2012.
Page 24 of 24
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: snayar@apaoindia.com
Disclaimer: The information contained in this newsletter has been collected from news/articles
appeared in various newspapers and other publications and also collected from respective airport
operators. APAO makes no warranties as to the accuracy or authenticity or completeness of the
information.