ASSOCIATION OF PRIVATE AIRPORT OPERATORS

Transcription

1 ASSOCIATION OF PRIVATE AIRPORT OPERATORS Newsletter May, 2012

2 AVIATION SECTOR 1. Airport Authority of India (AAI) celebrated its 17 th Anniversary on April 28 th in New Delhi with an organised cultural event Indralok se Indraprastha A Runway Yatra at Sirifort Auditorium. 2. The new international terminal building of the NSC International Airport, Kolkata with 4 million passenger handling capacity along with helipads and renovated airstrips is likely to be commissioned by October before the Durga Pujas. 3. Ministry of Civil Aviation has sanctioned Rs. 2 lakh crore investments in the aviation sector in Bengal. Helipads will be constructed at Digha, Haldia, Darjeeling, Durgapur and Malda. 4. Airport Authority of India (AAI) is planning to levy a user development fee for Chennai, Kolkata and 10 other airports. The Authority is seeking a 50% hike for Chennai and 150% hike for Kolkata in airport charges. A formal proposal is being sent to Airports Economic Regulatory Authority (AERA). 5. Ministry of Tourism has taken up the issue of hike in airport charges and users fee at the New Delhi International Airports by airports regulator AERA with the Prime Minister s Office and the Civil Aviation Ministry arguing that the move has made travel costly and has hit budget tourists hard. 6. Nepal Tourism Board is expecting 35% growth in the Indian Tourist Arrivals in Nepal in There was a 28% growth in arrival of Indian tourists in Buddha Air, Nepal s private airline is likely to start operations between Kathmandu and Kolkata in the second half of Minster of Civil Aviation Shri Ajit Singh informed Rajya Sabha that Airlines have incurred operational losses of around Rs. 19,000 crore in the period , and and Rs. 10,000 Crore loss is anticipated in Inter Ministerial Working Group has been constituted, headed by the Civil Aviation Secretary, to identity the factors causing stress in the Civil Aviation Sector and to suggest solution. 9. Ministry of Civil Aviation has proposed formation of a Civil Aviation Aerospace Promotion Advisory Council (CAAPAC), which will have members from the regulatory agencies and the aerospace industry. The council will take necessary action to promote aerospace manufacturing activities, review the National Civil Aeronautics Policy, review regulatory framework and recommend medium and long-term measures for promotion of Civil Aeronautics Industry. The council will help in identifying areas for development of manufacturing technology and for indigenization of aircraft parts for Indian and global markets. Page 1 of 20

3 10. Civil Aviation Ministry is planning to auction air routes which are loss making routes and connects smaller cities with lower passenger loads to boast regional connectivity. Routes and airlines will be matched through competitive bidding. 11. The State Transport Department of West Bengal has sent a proposal to the Civil Aviation Ministry seeking permission to start a helicopter service for tourists from Kolkata to various tourist spots in the state such as Sunderbans, Jalpaiguri, Darjeeling, Cooch Behar and tourist spots of South Bengal. 12. Civil Aviation Ministry is working on a new policy, which would concentrate on making India an Aviation Hub by expanding both regional and international air connectivity. The policy would focus on flying more passengers from India to far off destinations in Europe and North America by improving connectivity of local carriers to these regions and bringing more traffic to the country from adjoining regions, making visa processing easier, bolstering regional connectivity to tap into a bigger traffic base and ensuring that Indian carriers use up all their bilateral flying rights into Gulf and south Asian countries before revising up seats between these countries. 13. A Parliamentary committee has made a strong pitch for grant of financial autonomy to Airport Authority of India (AAI) and allowing it to raise funds through tax-free bonds. 14. Civil Aviation Minister Shri Ajit Singh informed the Lok Sabha that Indian Civil Aviation Security System has been adjudged in 2011 as meeting the highest international standards under Universal Security Audit Programme by International Civil Aviation Organisation (ICAO). 15. Supreme Court has directed Centre to progressively phase out the subsidy for Haj pilgrims for air travel within the next 10 years. 16. The Minister of Civil Aviation Shri Ajit Singh informed Lok Sabha that the work for construction of new terminals has been undertaken at Biju Patnaik Airport and Khajuraho airport with scheduled date of completion as October, 2012 and December, 2012 respectively. Airports Authority of India (AAI) has taken up construction of a new Integrated Terminal Building at Raipur with a capacity to handle 500 domestic and 200 international passengers at a time, with schedule date of completion as August, Minister of Civil Aviation Shri Ajit Singh informed Rajya Sabha that the proposal to form a Civil Aviation Authority (CAA) in place of Directorate General of Civil Aviation (DGCA) is at formative stage. It is proposed that CAA will have adequate financial and administrative flexibility to meet functional requirements for an effective safety oversight system. In addition, it is also proposed to assign additional functions relating to certain economic regulations, consumer protection and environment regulation. CAA is proposed to be set up through a separate Act. However, the present legal framework such as Aircraft Act 1934 etc will continue to govern the aviation sector. The objective of the proposed CAA is to overcome the constraints presently faced by DGCA in terms of recruitment and retention of Page 2 of 20

4 technical manpower and inability to quickly address ongoing operational issues due to lack of adequate administrative and financial authority. 18. The parliamentary standing committee on rural development finalised the draft of the land acquisition bill on 14 th May. The committee proposed major changes, including the deletion of all exemptions to the Bill. Land acquired for public private partnership (PPP) or even land acquired privately for public purpose (publicly used assets) will also be covered under the Bill. The committee also recommended that a ceiling limit for purchase of land could be determined by state legislatures where projects require large acquisitions. Land acquired, if not used for 5 years is to be returned to its original owner according to the report of the committee. In case of acquisition in scheduled areas, the consent of the gram sabha would be required. 19. Director General of Civil Aviation has grounded the entire fleet of Madhya Pradesh civil aviation department. The state Government has 2 helicopters and 2 fixed wing aircraft in its fleet. 20. A recent survey by Amadeus, a technological solutions company for global travel has stated that Delhi-Mumbai is the 10 th busiest air route in the world. Seven of the worlds 10 busiest routes are in Asia and three are in Japan. The Jeju-Seoul route is the world s busiest. 21. The Director General of Civil Aviation (DGCA) has decided to appoint Flight Operations Inspectors (FOIs) from General Aviation also. Till recently FOIs were examiners senior and experienced pilots who were either Government employees or from private airlines. 22. GPS aided Geo Augmented Navigation System (GAGAN), a satellite based facility aimed at enhancing safety and efficiency of aircraft operations, would be installed in all airports in India by June US Plane maker Cessna has unveiled a business jet capable of non-stop flights from New York to Paris, priced at nearly $26 million and will enter service in State-owned oil companies on 15 th May has cut aviation turbine fuel (ATF) prices by a marginal Rs. 273 per kilolitre, the third straight reduction in rates since April. The ATF price in Delhi was reduced by Rs per kl or 0.4%. 25. Shri Ajit Singh, the Minister of Civil Aviation informed Lok Sabha that Government of India has granted in-principle approval for setting up of a domestic Greenfield airport at Andal in Barddhaman District in West Bengal in the year 2008 to M/s Bengal Aerotropolis Projects Ltd (BAPL). M/s BAPL has informed that the construction works have already been started with scheduled completion date of September, The Government of India has given in-principal approval to name the upcoming International Airport in Mohali, Chandigarh as Shaheed Bhagat Singh International Airport. Page 3 of 20

5 27. Samajwadi Party Government has sent a proposal to the centre for an International Airport at Mathura, which is 120 km from Delhi. The UP Government has shelved the proposal of an International Airport at Jewar near Greater Noida. 28. Brazilian aeroplane maker Embraer is in talks with some partners in India to supply commercial aircrafts as it looks to tap the market potential. 29. Shri Ajit Singh, the Minister of Civil Aviation informed that the Air Services Agreement between India and China, designated airlines of both countries are entitled to operate 42 services per week to each other s territory. At present, Air China is operating 10 services per week to/from India. 30. At present, the strength of Air Traffic Controllers (ATCOs) in India is 2191 against the sanctioned strength of 2417 with a shortfall of Director General of Civil Aviation (DGCA) has suspended the licence of Indamer, one of the oldest maintenance, repair and overhaul (MRO) firms in the country. The regulator has ordered a detailed investigation to probe charges of alleged irregularity in aircraft maintenance slapped on the firm by one of its major corporate client. 32. Ministry of Civil Aviation is planning to raise an elite Airport Security Force (ASF) of its own and has prepared a detailed report on this and the same is under consideration of Minster of Civil Aviation. The ASF is proposed to be formed on the lines of the Railways Protection Force (RPF) of the Indian Railways. Similar to RPF, the ASF will be exclusively looking after the security of all airports and other civil aviation installations in the country. 33. Aiming to operationalise 225 airports across the country by 2020, the Airports Authority of India (AAI) has asked all state governments to prepare plans and create inventory of airports, helipads or even used airstrips which they want to develop and upgrade. Government has already given in-principal approval to set up Greenfield Airports at Mopa (Goa), Navi Mumbai, Shirdi, Sindhudurg (Maharashtra), Durgapur (Bengal), Shimoga, Hassan, Gulbarga, Bijapur (Karnataka), Kannur (Kerala), Pakyong (Sikkim), Datia (Madhya Pradesh), Kushinagar (UP) and Karaikal (Puducherry). 34. Indian Railways Catering and Tourism Corporation (IRCTC) has launched booking of air tickets through its website from May 7 th.the tickets can be booked at air.irctc.co.in and rail-tourismindia.com. IRCTC has entered into an agreement with Air India, Jet Airways, Kingfisher, Spicejet, Indigo and Go Air. Initially customers will be able to book tickets of these airlines on domestic routes. International bookings will be opened soon. 35. The expert appraisal committee (EAC) of the Ministry of forest and environment on 10 th May has cleared important offsite infrastructure two roads and two intersections which would improve connectivity to the Navi Mumbai Airport. Page 4 of 20

6 36. In order to boost regional connectivity, Government is planning to make it mandatory for airlines to operate feeder flights into big cities from nearby places. Such a move would, in turn, make it mandatory for all scheduled carriers to have small turbo-prop aircraft in their fleet. These feeder flights would be in addition to the existing nor of flying to the north-east and Kashmir. Aviation Ministry has asked the Oil Ministry to put Aviation Turbine Fuel (ATF) in the list of petro products whose prices are determined by the Government and not oil companies. 37. Chennai Port Trust is planning to build an air freight station (AFS) near the airport under public-private-partnership mode. 38. Indian carriers will soon be able to operate unlimited flights from Gaya, Thiruvananthapuram, Kozhikode, Visakhapatnam, Port Blair and 13 other Indian cities to Myanmar. The agreement between the two governments also proposes allowing Indian carriers to fly onwards from Myanmar to Bankkok, Kuala Lumpur and Singapore. 39. At present, Indian Airlines have a share of 30% of international traffic to and from India. With the new routes and granting traffic rights to private airlines Jet Airways, Indigo and Spice Jet, the share of Indian Airlines in international traffic to reach 40% 40. Minster of Civil Aviation Shri Ajit Singh has ordered an inquiry and called for a detailed report on the AI call centre being run by InterGlobe Technologies (IGT). IGT s holding company is InterGlobe Enterprises that runs the low cost carrier Indigo 41. The Director General of Civil Aviation (DGCA) has suspended the licence of Global Vectra Helicorp Ltd. Global Vectra provides services to various oil exploration companies such as ONGC to ferry its personnel to and from offshore oil rigs and also provides services to the pilgrim town of Vaishno Devi. 42. Malaysia Airports Holdings Bhd (MAHB) Managing Director Tan Sri Bashir Ahmad has been unanimously re-elected for the second term as President of the Airports Council International (ACI) Asia-Pacific. 43. Airbus Industries is in the process of setting up an innovation cell in Bangalore. The cell will work on next generation aircraft for 2030, 2040, 2050 and so on. 44. Himalayan Heli Services Pvt. Ltd. has been awarded the contract to provide helicopter services to pilgrims intending to take the Amarnath yatra. 45. Gujarat s state government has invited bids for intra-state passenger and cargo aviation services. The Government has shortlisted 5 circuits and 11 airstrips across the state. The routes which are within nautical miles of each other are located at Ambaji, Palitana, Ankleshwar, Dwarka, Mandvi (Kutch), Morbi, Rajkot, Parsoli, Rajpipla, Dholavira and Dahej. Page 5 of 20

7 46. Pawan Hans will launch regular helicopter services to connect Delhi with the neighbouring cities such as Vrindavan, Mathura, Muzaffaranagar, Meerut and Agra. The service will not only provide seamless air connectivity to Delhi but also help in medical emergencies. 47. Punjab Chief Minister has urged Minister of Civil Aviation to immediately start international flights from Chandigarh International Airport. 48. State-owned oil companies have cut jet fuel prices by 2%. This is the fourth straight reduction in rates since April. The Jet fuel will cost Rs. 66, per kl from tomorrow against Rs. 68, per kl now in Mumbbai. Page 6 of 20

8 AIRPORT 1. Bhubaneswar Airport has registered an operational profit of Rs crore in fiscal ending March. 2. Incheon International Airport, South Korea has been awarded the World s Best Airport by World Airport Awards based on surveys of 12 million passengers from 100 countries. Singapore Changi and Hong Kong International came second and third respectively. 3. The Airport Authority of India (AAI) has proposed a User Development fee (UDF) of Rs. 160 and Rs. 500 on domestic and international passengers, respectively for Chennai International Airport. 4. Belfast-based geotechnical company Maccaferri has won an international award for its challenging work to construct reinforced soil walls and slopes at the new airport at Pakyong in Sikkim. 5. New integrated passenger terminal at Chaudhary Charan Singh Airport was inaugurated by Union Civil Aviation Minister Shri Ajit Singh on May 19 th. The terminal was delayed by almost 3 years. The operation of flights from the new terminal would start from June 2 nd. Shri Ajit Singh announced that the Lucknow s Chaudhary Charan Singh Airport and the Varanasi Airport, which are currently Customs Airport, would soon be declared International Airports. As the demand for air connectivity is growing at a stupendous rate in Uttar Pradesh, Ministry is also planning the expansion of some Air Force Airports in the state such as Kanpur, Allahabad and Gorakhpur, apart from giving clearance to the proposed Greenfield Airport at Kushinagar. 6. New airport terminal at Madhurapudi Airport was inaugurated on 16 th May after a delay of 5 months. The new control tower, terminal building and other buildings were constructed at a cost of Rs. 38 Crore. 7. According to the Ministry, Minster of Civil Aviation Shri Ajit Singh held a meeting with Shri Montek Singh Ahluwalia, Deputy Chairman, Planning Commission and Shri Gajendra Haldea, Advisor, Planning Commission to discuss the development of new airports under Public Private Partnership (PPP). Development of Navi Mumbai, Goa, Itanagar and Kannur airports under PPP mode was discussed by the Civil Aviation Minister with the Deputy Chairman, Planning Commission. Dr Nasim Zaidi, Secretary, Ministry of Civil Aviation was also present on the occasion. The Civil Aviation Minister also discussed with Shri Ahluwalia, the modalities for city side development, maintenance and running of recently constructed Chennai and Kolkata airports under PPP mode. It was decided to consider the development of new airports, city side development, and maintenance of Chennai & Kolkata airports, work out various modalities and seek approval by the Cabinet Committee of Infrastructure. As per the reports, Shri Ajit Singh also discussed the proposal for the development, operation and maintenance of state-owned Kolkata and Chennai Airports through a Page 7 of 20

9 public private partnership (PPP) model with the Planning Commission Deputy Chairman. APAO Members 8. The construction work at the Bangalore International Airport Terminal T1 is in steady pace. The work is being undertaken alongside a fully operational airport. The infrastructure will be available in phases starting early For the many VVIPs who transit via Bangalore Airport, a new VVIP building is constructed. 9. Bangalore International Airport Limited (BIAL) was awarded CNBC TV 18 Infrastructure excellence Award 2012 in the Best Airports Category and Excellence in Dedicated ICT Infrastructure at the 6 th National Telecom Awards 2012 held on May 8 th Bangalore International Airport launched a 10-day event on May 16 th called Play Port, an activity specifically designed for the young passengers who travel through the airport in larger numbers during the ongoing school holidays. The event will run till May 24 th. 11. On May 24 th Bangalore International Airport celebrated its 4 th anniversary. The airport announced a range of news services and offerings for its passengers. 12. Bangalore Airport is presented with the certificate in recognition of the achievements under the various levels of Airport Carbon Council International (ACI). The Airport has been awarded the certificate for carbon reduction. 13. Indira Gandhi International Airport, New Delhi (DIAL) has been named the most improved airfield at the annual World Airport Awards. 14. CAG draft report on the public-private partnership for the Indira Gandhi International Airport has reported that Delhi International Airport has a potential to earn Rs. 1,63,557 crore over a 60 year period from the land given to the DIAL on a lease rent of Rs. 100 per annum, hurting the interest of the Government. 15. Rajiv Gandhi International Airport, Hyderabad (GHIAL) will levy Rs. 20 for entering the Airport Village, the area outside the arrival hall, which has food and beverage stalls and seating. The fee is meant to deter crowd building at the airport. 16. On May 3 rd, Mumbai International Airport Pvt Ltd (MIAL) completed six years of taking over operations at Chhatrapati Shivaji International Airport (CSIA). MIAL celebrated Passengers Day, a one-of-its-kind pioneering initiative started by MIAL in 2009 to mark the 6 th anniversary. Passengers were treated to a number of special, memorable and surprising moments all through the day at CSIA. 17. Mumbai International Airport will be the first airport in the country to install advanced detectors of radioactive substances. Mumbai airport is one of the busiest in Page 8 of 20

10 South Asia, and it caters to around 30 million passengers and 6,70,235 tonne of cargo each year. 18. Rapid Exit Taxiway at Mumbai International Airport will be operational by June 28 th. 19. Mumbai International Airport Pvt. Ltd. has been presented with the certificate in recognition of the achievements under the various levels of Airport Carbon Council International (ACI). The Airport has been awarded the certificate for mapping carbon emissions. 20. Cochin International Airport Limited (CIAL) has inaugurated new 110 kv substation at the airport on 07th May Cochin International Airport Limited (CIAL) has adopted SAP AG s (NYSE: SAP) flagship SAP ERP ECC 6.0 solution. The solution will enable the different departments of CIAL to be connected over a unified network and will facilitate smoother information flow and access. 22. Cochin International Airport Limited (CIAL) celebrated its 13 th anniversary on 25 th May Cochin International Airport Limited (CIAL) prepared a detailed project of Kannur International Airport and submitted to Ministry. Page 9 of 20

11 AIRLINES Air India 1. Air India has signed a code-share agreement with South Korea s major airline Asiana Airways in a bid to provide direct connectivity with Seoul. 2. The US transportation department has fined Air India for $80,000 for failing to post customer service and tarmac delay contingency plans on its website and adequately inform passengers about its optional fees. 3. Air India plans to operate its new Boeing-787 Dreamliner on Domestic Routes in the beginning so as to enable pilots to get familiar with the aircraft and complete the required training to fly it. Two Boeing Dreamliner are expected to be delivered in three weeks and the third in June. 4. Air India is seeking to raise 41.1 million in short-term loans, including $600 million in external commercial borrowing (ECB) for Air India Ltd. and its subsidiary Air Indian Charters Ltd. 5. Indian Pilots Guild s (IPG) 400 pilots went on a strike from 8 th May onwards till date. Air India operations have been affected by the 24 day strike (as on 31 st May) and are operating a curtailed international schedule with nearly 120 executive /management pilots. The airline has sacked 101 of the 400 agitating pilots, who are demanding exclusive rights to fly Boeing 787 Dreamliner aircraft. The agitation has cost the airline more than Rs. 330 crore in revenues. 6. Air India board on 14 th May approved an asset monetisation plan worth Rs. 5,000 crore aiming to rake in an average of Rs. 500 crore per year for the period of 10 years. 7. The total service tax dues of Air India are Rs. 395 crore and taking into account the interest at 15% the total dues is Rs. 454 crore. Air India has promised to clear all its 9dues as soon as it gets capital infusion from the Government. 8. The delivery of first Boeing 787 Dreamliner to Air India which was scheduled for May end will be delayed till the compensation for the delay of close to 5 years in the delivery of the first of the 27 aircraft Air India had ordered is not decided. 9. Minster of Civil Aviation Shri Ajit Singh has sought a proposal to exclude senior pilots or commanders from the workmen category, as stipulated under the current labour laws. If cleared, this would prevent senior pilots from proceeding on strikes. 10. Air India is negotiating a deal with Air Canada to dry lease 5 of its Boeing (long range) aircraft. The deal is likely to be finalised as early as within 2-3 weeks. Page 10 of 20

12 11. Civil Aviation Minister, Shri Ajit Singh has set up a committee to examine route profitability of Air India and make its recommendations to rationalize the same keeping in view the overall objective of profitability. 12. Due to the ongoing agitation of Air India pilots, Air India has sought Rs. 2,000 crore immediately from the Government to pay oil and airport companies and tax dues. The airline also plans to pay about Rs crore as salary to the non-striking pilots through internal accruals by June 10 th, otherwise the Rs. 2,000 crore amount will be used to pay priority vendors. This fiscal AI was o get Rs. 10,600 crore of which Rs. 1,200 crore has been paid towards equity infusion and meeting working capital requirements. Kingfisher 1. As reported in the newspaper, Kingfisher Airlines owes due of about Rs. 280 crore to Airport Authority of India (AAI) in addition to huge outstanding against the private airports. The Airlines is reeling under more than Rs. 7,000 crore of debt. 2. Government has initiated legal action against Kingfisher Airlines towards dishonour of Cheques submitted by it. 3. Kingfisher Airlines has ceased to be United Breweries subsidiary as on Feb 18, 2012, consequent upon it allotting shares against optionally convertible debentures. As on Dec 31, 2011, UB Holdings' stake in Kingfisher stood at 40.1 percent, but it declined to percent on Feb 18, 2012 after an increase in the airline's equity base pursuant to issue of shares to some entities in lieu of certain convertible bonds. The airline's international operations had been suspended after the International Air Transport Association (IATA) barred the carrier from its inter-airline clearing house and billing and settlement plan accounts due to non-payment of dues. Kingfisher has a debt of Rs.7, crore. Its net loss widened to Rs crore for the quarter ended Dec 31, 2011 from Rs crore in the October-December quarter of the last fiscal. 4. Kingfisher Airlines owes Rs. 269 crore in income tax dues and the department has initiated penalty and prosecution proceedings against the airline. Income Tax department has frozen 2 bank accounts of Kingfisher Airlines for non payment of tax dues. 5. Kingfisher Airlines reported a Rs. 1,152 crore loss for the fourth quarter of fiscal 2012, more than thrice that of the same quarter last year. The airline has made a loss of Rs. 360 crore a year ago. For the full fiscal, the airline reported a loss of Rs. 2,328 crore, more than twice that of the previous year and net revenues fell 12% to Rs. 5,715 crore. During the fiscal, the airline returned 11 aircraft. SpiceJet 1. Spicejet has expanded its services to Chennai and Port Blair form 1 st May Page 11 of 20

13 2. SpiceJet has been granted permission from Ministry of Civil Aviation to operate on seven new international routes- Kabul, Guangzhou, Colombo, Bangkok, Male, Dubai, and Hong Kong (summer schedule). 3. An HSBC research report has stated that SpiceJet is poised to perform better than its peers, but a financial turnaround in the near term is ruled out. The report also noted that the airline is better placed to attract FDI than its rivals, as and when it is allowed. 4. SpiceJet is planning to deploy its fleet of new Bombardier Q400 planes to connect tourist destinations in North India and the possible states are Uttar Pradesh, Uttarakhand, Rajasthan, Punjab and Madhya Pradesh. 5. SpiceJet Ltd. has posted a loss of Rs. 249 crore for the quarter ended March 31, 2012 compared with a loss of Rs. 59 crore for the comparable previous period. The falling value of the rupee, high fuel prices and the significant tax burden were cited as major reasons for the higher losses. However, for the quarter, the company posted 46% growth in revenue from operations at Rs. 1,113 crore (Rs. 760 crore) and an 18% growth in passenger yields to Rs. 3,816 from Rs. 3,237 in the corresponding previous period. For the full year ended March , SpiceJet posted 36% growth in revenue from operations at Rs crore (Rs. 2,938 crore) and incurred a net loss of Rs. 605 crore compared with a net profit of Rs. 101 crore in the previous year. 6. The delivery of the first shipment of directly imported fuel to SpiceJet will be by early July. Jet Airways 1. Jet Airways has introduced a new concept of sky advertising and has named it the Flying Billboard. In January, Jet introduced the first-ever Flying Billboard in India by launching a campaign for Nokia Lumia range of mobile handsets. Jet Airways has now collaborated as the airline partner with Disney channel s Jet Set Go summer campaign. As part of the campaign, Jet Airways Boeing will sport Disney characters such as Mickey Mouse on its exterior and will fly 30 winners of this contest along with their families to Hong Kong for a two-day trip to Disneyland in July. 2. Jet Airways has been granted permission from Ministry of Civil Aviation to operate on new international routes- Chittagong, Dhaka, Kuwait, Male, Singapore, Dar-essalaam, Bangkok and Dubai (summer schedule), Munich, Frankfurt, Paris, Brussels/Chicago/San Francisco/Washington DC (winter schedule). 3. Jet Airways has decided to temporarily suspend its Mumbai-Johannesburg flight service from June as a part of its ongoing network evaluation with a clear focus on profitability. 4. Jet Airways adds fourth daily flight on the Mumbai-Dubai route from May 18 th. 5. Jet Airways has resumed sales of tickets on Makemytrip.com. Page 12 of 20

14 6. CAPA report has stated that Jet Airways is expected to order more than 100 narrowbody aircraft for up to $3.75 billion in and the airline is understood to be actively evaluating Airbus s narrow-body A320 aircraft and is likely to lease up to 10 A330s to support expansion of its European network. 7. Jet Airways has introduced a new flight from Chandigarh to Bhopal from May 16 th with a New Delhi stop over. 8. Jet Airways has reported losses soaring to Rs crore in the quarter ended March 31, For , the consolidated loss stood at Rs crore against a Rs. 85 crore loss in the year before. Rupee deprecation and fuel prices have impacted the quarterly results. 9. Jet Airways is targeting to raise $200 million through sale and lease-back of of its aircraft by the end of financial year. 10. Jet Airways is making move to ensure its place in Star Alliance, a global group of airlines. Joining the alliance will enable Jet Airways to add depth to its route network in the international sector by providing passengers last-mile connectivity in foreign countries thereby making considerable savings. Indigo 1. Indigo has been granted permission from Ministry of Civil Aviation to operate on five new international routes Kathmandu, Singapore, Bangkok, Dubai and Jeddah (summer schedule). 2. Indigo has resumed sales of tickets on Makemytrip.com. 3. IndiGo Airlines has tied up with New Zealand based training firm CTC Aviation for training its pilots. 4. IndiGo Airlines has tied up with PepsiCo for the Change the Game initiative. IndiGo surprised its passengers with Football kits along with their checked-in baggage at the Bangalore, Mumbai, Hyderabad, Kolkata, Goa and Bhubaneshwar. GoAir 1. Government has permitted GoAir to import fuel directly without sourcing it through public sector canalising agency Indian Oil. Go Air is the fourth airline to get an import licence from the DGFT after the government decided to allow import on ATF in February. International Airlines 1. The first Boeing 787 Dreamliner flew out of India on 1 st May 2012 with Japan Airlines replacing Boeing 777 on services between New Delhi and Tokyo. Page 13 of 20

15 2. Delta Airlines Inc. is buying a Pennsylvania oil refinery from ConocoPhillips for $180 million, to offset the risk of higher prices for jet fuel. The Airlines estimates that the accord would reduce its annual fuel expense by $300 million. 3. Air China has launched direct flights from Chengdu to Mumbai form 2 nd May The Airline will use Airbus A319 aircraft for the flights. 4. Air France-KLM had a net loss of 368 million ($ 483 million) in the Q1, 2012 due to high fuel costs and continued drop in cargo. 5. Gulf Air has increased more flights between Chennai and Bahrain from 9 to 12 flights per week in each direction. 6. Turkish Airlines is seeking approval from the Ministry of Civil Aviation (MoCA) to extend the bilateral limits to increase the number of flights between Turkey and India. 7. Etihad Airways has announced that they will start flying to Ahmedabad in November. Flights will operate daily between Abu Dhabi and Ahmedabad. 8. Virgin Atlantic will resume London-Mumbai service from October. 9. Iraqi Airways will launch flights from Mumbai and Delhi to Baghdad and Najaf. 10. Singapore Airlines is looking for potential partnerships in India and China. 11. Sukhoi Superjet 100, the first new Russian passenger plane in more than 2 decades, crashed during a demonstration flight in Indonesia killing all 50 people on board. 12. Malaysian Airline is looking to enhancing air connectivity to India, especially to tier two cities. The airlines would operate 5 additional services on the Mumbai-Kuala Lampur sector between May 13 and 31 to cater to the holiday passengers. The new services would be in addition to the 4 weekly scheduled flights. 13. Japan Airlines, which went bankrupt 2 years ago, logged on 14 th May annual net profit of $2.33 billion due to cost cutting efforts. 14. China Airlines has suspended its dedicated freighter service to Delhi. Instead the airline has added Chennai as the latest destination to connect with Taipei. 15. Kenya Airways is seeking compensation from Boeing for delay in delivery of the 787 Dreamliner aircraft. The first Boeing 787 aircraft was to be delivered by October 2010, but would now be delivered between January and March The airways launched Delhi to Nairobi on 16 th May. The airways are also looking to start flights from Ahmedabad and Bangalore to Nairobi in the future. The company already operates flights from Mumbai to Nairobi. Page 14 of 20

16 16. Turkish Airlines (THY) has signed a commercial cooperation agreement with Air Canada. The contract will enable domestic Canadian flights to directly connect to Turkish Airlines itineraries to or beyond Turkey and for THY originating passengers with Air Canada domestic flights. 17. Cathay Pacific is planning to either to cancel or trim flights to Delhi due to high cost. American Airlines and Air Asia has already pulled out, Air France has also opted to operate fewer flights. Cathay Pacific will be the fourth foreign airline to either cancel or trim flights in recent months. 18. Qantas Airlines has announced plans to separate its domestic airline business from its loss making international operations. 19. Dragonair will start flying to Kolkata Airport in October The airlines would operate 4 flights a week with Airbus A British Airways joint business with Japan Airlines has received clearance, allowing the pair to cooperate commercially on flights between Europe and Japan. The joint business would launch in March 2013 and the revenue-sharing agreement would strengthen its oneworld alliance. 21. Air Arabia will increase the frequency of flights from UAE to Nagpur to 4 times a week from June 15 th. 22. Emirates Airlines has garnered a 20% share of the total outbound traffic from India over the past year. The airline operates 185 flights per week. Page 15 of 20

17 CARGO 1. Air China Cargo, China s Leading Airline has commenced scheduled services from May 3 rd on the Mumbai-Chengdu-Shanghai route thrice weekly. In March, Air China Cargo commenced Shanghai-Chennai-Chongqing-Shanghai Services. 2. Etihad Airways has signed a MoU with Abu Dhabi s Lulu International Group to be the preferred supplier of air cargo services for Lulu s retail operations into and out of UAE. 3. Cathay Pacific Airways has expanded cargo presence in India with services to Hyderabad and Bangaluru. It will commence twice-weekly freighter service to Hyderabad and augment its Bengaluru service with a third weekly freighter flight from 17 th May. 4. Chennai International Airport has reported negative 8.14% change over previous year in cargo volume in to 3.57 lakh tonnes compared with 3.88 lakh tonnes. 5. China Airlines Ltd. (CAL) has launched a new cargo service on the Taipei-Kuala Lumpur-Chennai-Luxembourg route from May 16 th. The airline is the first and the only airline to offer direct scheduled cargo service from Chennai to Luxembourg. 6. Ozar Airport in Nasik handled its first direct uplift export cargo on May 21, Page 16 of 20

18 TRAFFIC 1. Shri Ajit Singh, the Minister of Civil Aviation informed Rajya Sabha that the passenger traffic has grown at the rate of 17%-18% in the last few years. 2. Bhubaneswar Airport registered a flow of 12,42,745 air travellers in the fiscal ending March. There was an increase of 1,83,794 passengers over the previous year. 3. Foreign Tourist Arrival (FTA) during the Month of April was 4.52 lakhs as compared with 4.38 lakh during the month of April, 2011 and 3.72 lakh in April, Foreign Exchange Earnings (FEE) during the month of April 2012 were Rs crore as compared to Rs crore in April 2011 and Rs 4518 crore in April The growth rate in FEE in rupee terms in April 2012 over April 2011 were 17.8% as compared to 26.7% in April 2011 over April Minister of Civil Aviation Shri Ajit Singh informed Rajya Sabha that during the period , and , Air India had carried 6.19 million, 7.19 million and 7.67 million passengers respectively on domestic network and 5.63 million, 6.67 million and 5.94 million passengers on the International network respectively. The Yield per Revenue Passenger Kilometre (Yield/RPK) in Air India achieved during the aforesaid period was Rs. 3.16, Rs and Rs respectively. 6. Passenger Traffic grew by 7.15% between January and April 2012 with all domestic airlines carrying around lakh passengers as against lakh during the corresponding period last year. 7. Domestic Market Share of Airlines in April Jet Airways-Jet Lite ranked no. 1 with 28.2%, followed by no-frills airlines Indigo with 23.8% and SpiceJet 17.7%. Air India s share was 17.6% followed by Go Air 7.3% and Kingfisher 5.4%. 8. Air India has registered the highest flight cancellations in the domestic sector at 5.2% and Kingfisher Airlines saw 3.3% flight cancellations. 9. Mangalore Airport has witnessed 19.87% passenger handling growth in the first four months of The airport handled 3.21 lakh passengers against 2.68 lakh passengers in the corresponding period in IATA has reported that total April passenger demand, which combines international and domestic air traffic, rose 6.1% versus the same month last year, while cargo volumes sagged 4.2% in the same period. Middle East airlines recorded the biggest growth of 16%, while European airlines recorded a passenger demand growth of 5.9%, below the 7.4% global average and significantly lower than the 8.7% growth recorded in March. With the exception of Africa, all markets saw capacity expansion at levels below the expansion in demand Page 17 of 20

19 AERA APPELLATE TRIBUNAL 1. Justice V.S. Sirpurkar, a retired Judge of the Supreme Court of India has assumed the charge as Chairman of the Competition Appellate Tribunal of India from 22 nd May after the retirement of Justice Arijit Pasayat `on 9 th May. 2. Mumbai International Airport Pvt. Ltd (MIAL) case against AERA on fuel through put charges came up for hearing on 2 nd May The tribunal on hearing the parties decided to dispose the case by directing AERA to finalise the tariff within 4 months. 3. Consumer Online Foundation has filed an appeal against the ad-hoc determination of Development Fee (DF) for Delhi International Airport Pvt. Ltd. The Hon ble tribunal has dismissed the appeal on the ground of limitation. 4. FIA has filed an appeal against AERA on the issue of ADF determination for MIAL. This appeal came up for hearing on 17 th May 2012 and the appellant pressed for interim ex-party stay. The Hon ble Tribunal disposed the IA without granting any stay and fixed the next hearing for 19 th July FIA has filed an appeal against AERA on the issue of DIAL tariff. This appeal came up for hearing on 17 th May 2012 and the appellant pressed for interim ex-party stay. The Hon ble Tribunal disposed the IA without granting any stay and fixed the next hearing for 11 th July FIA has filed a writ petition before the Hon ble High Court of Delhi seeking interim stay against the tariff order of DIAL. Hon ble court after hearing all the parties disposed the appeal on 25 th May, 2012 by directing the applicant to approach the Tribunal for further hearing on the matter. The Hon ble High Court also directed AERAAT to pre-pone the next hearing to 25 th June, Page 18 of 20

20 SOURCE 1. Press Information Bureau 2. Press Trust of India 3. News Articles 4. Press Releases of: a. Bangalore International Airport Limited b. Cochin International Airport Limited c. Delhi International Airport Limited d. Hyderabad International Airport Limited e. Mumbai International Airport Limited 5. Airport Economic Regulatory Authority Appellate Tribunal (AERAAT) Page 19 of 20

21 ASSOCIATION OF PRIVATE AIRPORT OPERATORS (APAO) 710, 7 th Floor, Surya Kiran Building, 19 Kasturba Gandhi Marg, New Delhi, India Ph: , Fax: Web: info@apaoindia.com The information in this newsletter has been collected through secondary research. Your views and comments are welcome. Page 20 of 20