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ASSOCIATION OF PRIVATE AIRPORT
OPERATORS
Monthly Newsletter October, 2012
Members:
Page 1 of 27
CONTENTS
1. Aviation Sector ............................................................................................. 3
2. Airports
AAI Managed Airports ………..……………………………………………………………………13
APAO Member Airports
2.1 Bangalore International Airport Limited ............................................... 13
2.2 Cochin International Airport Limited .................................................... 13
2.3 Delhi International Airport Limited……………………………………………………..13
2.4 GMR Hyderabad International Airport Limited……………………………………14
2.5 Mumbai International Airport Limited………………………………………………..14
3. Airlines
3.1 Air India………………………………………………………………………………………………16
3.2 Kingfisher Airlines……………………………………………………………………………….17
3.3 SpiceJet………………………………………………………………………………………………18
3.4 Jet Airways…………………………………………………………………………………………18
3.5 IndiGo………………………………………………………………………………………………..18
3.6 GoAir………………………………………………………………………………………………….18
3.7 International Airlines………………………………………………………………………….18
4. Cargo ……………..………………………………………………………………………………………..20
5. AERA Appellate Tribunal …………………….…………………………………………………..23
6. Traffic…….…………………………………………………………………………………………………25
7. Source……………………………………………………………………………………………………….27
Page 2 of 27
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
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
FEE Foreign Exchange Earning
FIA Federation of Indian Airlines
FTAs Foreign Tourist Arrivals
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
IPG Indian Pilots Guild
MIAL Mumbai International Airport Limited
MoCA Ministry of Civil Aviation
MRO Maintenance Repair Overhaul
OTP On Time Performance
PIL Public Interest Litigation
PLF Passenger Load Factor
PMO Prime Ministers’ Office
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
Page 3 of 27
1. AVIATION SECTOR
1. MoCA is pushing for a more aggressive stance towards private airlines that buy a large
number of aircraft and deploy them on a few routes creating overcapacity. MoCA want
the private airlines to tailor those purchases and increase flights to non-metro cities and
small towns as part of the government’s drive to extend connectivity.
2. IATA on 1st October said that crisis-hit global airline industry may stem its growing
losses and even record modest profits in 2013, with air carriers in Asia-Pacific estimated
to post profits in 2012. A major reason for this upward revision by IATA was better
performance by the airlines through better matching of capacity to demand and various
cost-cutting measures. IATA estimated that Asia-Pacific airlines were set to post a $2.3
billion profit for 2012, which was $0.3 billion better than previous forecast. Airlines are
expected to earn $4.1 billion in 2012 up $1.1 billion from the $3 billion forecast and in
2013 industry profits will be to the tune of $7.5 billion.
3. ASSOCHAM in a note to the government has said that the government should consider
creating an airport infrastructure development fund and essential airlines service fund,
provide infrastructure status to the industry and consider rationalisation of taxes not only
on ATF and maintenance but also repair and overhaul facilities. With regard to low-cost
airports, ASSOCHAM said there was need for airports that would complement the no-
frills model offered by low-cost airlines. The cost of setting up these airports can be
covered by measures such as doing away with baggage conveyer belts, aerobridges and
buses for passengers without comprising on safety and security standards.
4. MoCA is deciding on 3 projects in next few weeks - a Greenfield airport in Patna, fast-
tracking airport development in Sriperumbudur (near Chennai) and Chakan (in Pune) and
request for proposals for the Navi Mumabi Airports in early November. These moves are
in line with Prime Minister Manmohan Singh’s decision in June to give impetus to the
development of infrastructure.
5. MoCA has decided to revamp BCAS which currently has strength of 126 officials. The
restructured BCAS aims to recruit 2,120 personnel. BCAS wants to have its own team
present at all functional airports, thereby giving them an edge to manage the security on
their own. These officers will be called Civil Aviation Security Liaison Officers.
6. Minister of Civil Aviation Shri Ajit Singh met Federal Minister for Transport, Innovation
and Technology of Austria Mrs. Doris Bures on 3rd October 2012. The two sides
discussed possibilities of enhancing bilateral cooperation in Civil Aviation sector.
7. DGCA on 3rd
October submitted an interim report on serious crisis facing Kingfisher
Airlines to MoCA, touching upon issues ranging from operational safety to financial
crunch.
8. The interim report of the Deepak Parekh led committee on infrastructure financing was
submitted to Prime Minister Manmohan Singh on 3rd
October. The report recommended
slew of measures to encourage investments in the infrastructure sector, including hike in
electricity, gas prices and rail fares besides deregulation of port tariffs. The
rationalization behind the suggestion is to make the respective businesses remunerative.
The committee also pitched for other measures such as hiking the FDI limit in the
Page 4 of 27
telecom sector from 74% to 100%, removal of regulatory uncertainties and easier M&A
rules to ease flow of funds into the sector. The panel focused on award of projects under
a PPP model in all infrastructure sectors stating that private sector investment in the
infrastructure sector would rise to 47% in the 12th
plan from 37.5% in the previous plan.
The report mooted expediting award of Greenfield airports, encouraging PPPs in
operation and maintenance of metro airports at Chennai and Kolkata and in 50 non-metro
airports.
9. On 4th
October, Public Accounts Committee of Parliament questioned senior AAI and
MoCA officials over CAG’s report on IGIA. The officials were questioned by the panel
members about Delhi airport’s operator using development fee levied from passengers
being used to bridge its financial gap. The CAG’s reports had criticized the levy of
development fee (DF) on passengers. MoCA has termed as “erroneous” the CAG’s
observations that “undue benefits” were given to the operator of IGIA and in a written
submission gave a point-to-point response of the auditor’s observations on DIAL and
informed PAC that the process of selection of joint venture was completed as per laid-
down procedure by observing all relevant guidelines and in accordance with the decision
of the Cabinet and the Empowered Group of Ministers. The process also underwent
judicial scrutiny and was validated by the Supreme Court.
10. Delhi Police has sent a report with set of safety concerns to MoCA, Ministry of Home
Affairs and BCAS in which they have maintained that they are against the development
of luxury hotels like Ibis and Lemon Tree Premier next to the IGI Airport, claiming that
this could make the runway vulnerable to terror attacks. The 200m proximity of the site
to the runway makes the runway susceptible to attacks. In response to this a 10 member
high level committee was formed to look into the safety parameters related to the
Aerocity project and submitted a report on the same. The final decision on the upcoming
projects would be taken after the thorough review of the report.
11. Government is planning to introduce a surcharge of Rs 5 per flight ticket to fund the Civil
Aviation Authority, the proposed aviation regulator that will replace DGCA. This
proposal is a part of the CAA Bill that has been sent for various ministries for inter-
ministerial consultations and the government plans to table it in the next session of
Parliament.
12. Indian Commercial Pilots Association on 6th
October sought Minister of Civil Aviation
Shri Ajit Singh’s intervention in resolving their grievances related to the dues of salaries
and allowances. In a letter addressed to Shri Ajit Singh, ICPA mentioned that their
salaries and flying allowances are pending for months and the uncertainty regarding the
schedule of payments has become unbearable. Shri Ajit Singh refuted claims saying that
their salaries may be a few months late, but for many months the pilots are getting paid
regularly. He further said he has not received any letter on the issue form the ICPA. Shri
Ajit Singh at the Economic Editors Conference informed that Air India pilots, who were
demanding immediate payment of their salary arrears, had drawn hotel bills worth Rs 141
crore in the last fiscal.
13. At the 49th
Conference of Director-Generals of Civil Aviation (DGCAs) of the Asia
Pacific Region held on 8th October Minister of Civil Aviation Shri Ajit Singh said that
India is strongly opposed to any kind of sustainable measures that would restrict growth
of India’s aviation industry, including the carbon taxation proposed by European Union
Page 5 of 27
states. On the growth of civil aviation, Shri Ajit Singh said the government is
planning to build 10-15 Greenfield airports and modernizing another 50 in the non-
metro cities over the next few years.
14. DGCA on 9th
October presented its first ever carbon footprint report for the Indian
aviation industry (for 2011), covering major airlines and airports. The report titled
‘Carbon Footprint of Indian Aviation 2011’ was prepared by DGCA in consultation with
the European Union–India Civil Aviation Cooperation Project. DGCA report said CO2
(carbon dioxide) emissions from Indian scheduled airline operations as well as from
foreign airlines to international destinations represent less than 1% of the country’s total
CO2 emissions. This number is significantly lower than the global average contribution of
airlines, which represent approximately 2% of global anthropogenic (man-made)
emissions. The carbon footprint of Indian scheduled airlines for domestic and
international operations was 12,704,000 tonnes of CO2, a 6% increase from 2010. The
carbon footprint of foreign airlines serving international destinations from Indian airports,
based on fuel uplift from India, reached 3,623,000 tonnes of CO2. CO2 emissions from
Indian scheduled airline operations as well as from foreign airlines to international
destinations represent less than 1% of the country’s total CO2 emissions. This number is
significantly lower than the global average contribution of airlines, which represent
approximately 2% of global anthropogenic emissions.
15. According to Kerala Chief Minister Oommen Chandy, Air Kerala, would be launched
from April 2014 to coincide with Vishu, New Year’s Day on the Malayalam calendar. In
November, Air Kerala will apply to the DGCA with the preliminary capital of Rs 100
crore.
16. Government is considering the following proposals:
a. To allow airlines to operate the A380 on regular flights to India.
b. Airlines buying new aircraft will have to submit three-year business and operational
plans along with techno-economic viability estimates to MoCA.
17. At the Economic Editors conference, Minister of Civil Aviation Shri Ajit Singh said that
the government has granted in-principal approval for setting up of 15 new Greenfield
airports to promote regional connectivity which will in turn make the country an
international hub. The work on 3 airports at Mopa (Goa), Navi Mumbai and Kannur is
likely to begin by the end of this fiscal. To promote connectivity to Tier-II and Tier-III
cities, changes were being made in the Route Dispersal Guidelines, which makes it
mandatory for all Indian airlines to operate to socially important but financially unviable
routes in the Northeast, Jammu and Kashmir and A&N Islands. Shri Ajit Singh further
informed that the Aircraft Acquisition Policy was also being amended to “nudge” the
Indian carriers to buy smaller planes to operate to smaller cities.
18. Supreme Court on 9th
October asked MoCA, DGCA and the airlines to decide amicably
as to who should render ground handling services at 6 of the country’s major airports and
gave time till November 6 to the stakeholders to sort out the differences. FIA pleaded
before the Supreme Court that ground handling at airports was part of aviation business
and the government cannot take it away from them. FIA said their efficiency and time-
bound services would be adversely affected if handling duties is taken over by the
government. FIA also refuted the Centre’s contention that this was done for security.
Page 6 of 27
19. Minister of Civil Aviation Shri Ajit Singh on 9th October said that the government will
soon open talks with Lufthansa to adhere to its plan to mentor Air India in joining Star
alliance. The government gave lots of facilities to Lufthansa for mentoring Air India to
join Star Alliance. Lufthansa was allowed to operate lots of flights from various parts of
the country almost making an open sky for them.
20. Delhi High Court on 10th
October issued notice to the Union Government, AAI and
DIAL on a petition filed by an NGO alleging allotment of a huge chunk of land for non-
aeronautical purpose to DIAL. The petition alleged that the private airport operator DIAL
leased out the land measuring 190 acres surrounding the airport to private companies for
commercial purposes in order to make money. On 31st October, Delhi High Court asked
the Union Government to submit documents related to the allotment of land in two weeks
time. The court posted the matter for November 21.
21. MoCA is considering a proposal:
i. To set up a separate unit to monitor and analyse the financial position of airlines.
This would take the function of monitoring airlines financial health out of the
purview of DGCA. The DGCA will concentrate only on technical and safety
aspects. Apart from financial analysis, the unit will analyse fares and yield
management practices followed by airlines. The unit will put in the public domain
details like how many tickets were sold in the various buckets of fares.
ii. To change the guidelines for non-scheduled operators (NSOPs), to ensure
individuals or companies buying aircraft for private purposes cannot do so under
the NSOP category at lower import duty and then divert it for personal use.
22. Issue of carbon tax between the European Union (EU) and India could see a resolution,
with a compromise formula likely to evolve at the UN's International Civil Aviation
Organization (ICAO)'s meeting to be held in end-October. Under the proposed formula,
an international market-based mechanism would be developed for taxing international
flights but it would apply to flights between developing countries at a later date, covering
only the developed nations to begin with. Revenues from developing countries' airlines
would be reverted back to the respective nations to deploy in reducing greenhouse gas
emissions from the aviation sector. The tax collected from rich countries' carriers would
be shared with developing nations.
23. Supreme Court on 12th
October refused to stay levy and collection of ADF, currently
being collected by DIAL, and remanded the contentious issue regarding the validity of
the fee to AERA Appellate Tribunal. The Bench said “Even if we assume that the
recovery would be difficult because of problems in identifying the passengers, this
money can always be used for some public good. Let the matter be finally disposed off”.
24. Minister of Civil Aviation Shri Ajit Singh on 12th
October asked AAI to drop its plan of
charging Rs 300 and Rs 1,000 as ADF from each domestic and international outbound
passenger at Chennai and Kolkata airports. Minister’s directive on ADF is in line with the
stated objective of the government to make air travel affordable and to ensure that
passengers are not subjected to any extra burden. Minister of Civil Aviation Shri Ajit
Singh has decided that these two airports will have a single UDF for flyers that to be
decided by AERA.
Page 7 of 27
25. AERA is in the process of determining ADF and Aeronautical Tariff for CSIA, Mumbai
for the regulatory period 1.4.2009 to 31.12.2014. AERA has recommended that Mumbai
Airport increase its fee by 151.56% rather than the 660% hike that the airport was
seeking. AERA asked AAI the extent to which it would be able to inject additional equity
into the project. In response to this, Minister of Civil Aviation also directed AAI to infuse
more equity in MIAL and DIAL with the objective of abolishing ADF at Mumbai and
Delhi Airports and accordingly submit its proposals to AERA. The expected financing
gap in case of MIAL is approximately Rs. 4200 Crore while in case of DIAL it is
approximately Rs. 1175 Crore if the ADF is abolished with effect from 1st January 2013.
Board of AAI has approved the proposal to pump in an additional equity of Rs 293 crore
in Mumbai airport and Rs 115 crore in Delhi airport and has written to AERA informing
it would infuse more equity to bridge the funding gap.
According to experts, abolition of ADF will not lead to a drop in fares since the money
received through this route will have to be raised through some other way, may be debt or
equity. Since the private players will have to take one of these routes, the extra charges
paid for furnishing the money will come down as some kind of fee or tax for the
passengers. Another possibility may be raising the UDF since the ADF is scrapped.
26. AAI has decided that KFA will not be allowed to resume flights till it clears its Rs 293
crore dues and will write to the DGCA not to revoke the suspension of KFA’s permit
until the airline provides a time frame for clearing dues. AAI is also planning to initiate
the process of seizing the KFA’s promoter i.e. Vijay Mallya’s personal aircraft if it lands
in Delhi. AAI has also issued a letter to KFA asking it to vacate two hangars the airline
occupies at Kolkata and Chennai airports.
27. Delhi Airport has asked KFA to vacate its international lounge at T3 since KFA has
stopped international operations from March 2012.
28. Minister of Civil Aviation Shri Ajit Singh has started a review of all vigilance cases
pending with its departments after finding that AAI was sitting on a vigilance report
alleging its officials of major irregularities in awarding ground handling projects in
Chennai and Kolkata airports. Normally, a vigilance report is sent to the respective
department and its chief vigilance officer.
29. Following the strong directive given by the Civil Aviation Minister Shri Ajit Singh to the
AAI to recover the outstanding amount from the advertising agency TDI International
India Ltd, the agency has paid an amount of Rs. 61.85 Crore to the AAI towards
settlement of dues against an estimated outstanding due of Rs. 77.05 Crore. Certain
amounts due to the agency in respect of Amritsar, Jammu, Pune and Kolkata airports are
under the process of reconciliation. TDI International India Ltd had been given
advertising rights in respect of number of airports including Chennai, Kolkata,
Ahmedabad, Amritsar, Pune, Trivandrum, Calicut, Tirupati, Goa and Jammu.
30. Government is looking to drastically cut the amount of time required to give clearance
for scheduled airline and private aircraft categories of operators to fly. The revised
proposal is to take just one day instead of three for giving clearance for a scheduled
airline and three days instead of a week to give the nod for a private aircraft operator to
take flight.
Page 8 of 27
31. The Committee on public Undertakings CoPU has started deliberations on the CAG’s
report on implementation of public-private partnership project by AAI at IGIA, Delhi.
The CoPU will look at the implementation of operation, management and development
agreement signed by the AAI and DIAL and will particularly look into paragraph 2.3 of
the CAG report, which discussed the concession period provided to the developer,
allegedly violating a Cabinet note in 2003. The panel at a meeting held on 18th
October
asked MoCA to provide all documents on the bidding process and land acquisition for
building the airports. It has also sought details of the compensation package given to
farmers whose land was acquired for the project and whether any five star hotels are
coming up in the land acquisition acquired for the airport.
32. BCAS has made it mandatory for airport operators to put in place explosives trace
detectors at all points for screening. The detectors can locate explosives form the vapours
emanating from the containers.
33. Keen on floating Air Kerala, the congress led UDF government has asked the Centre to
waive certain regulatorys norms to start its proposed low cost airline, Air Kerala, mainly
to operate services to Gulf countries.
34. India and New Zealand on 17th October signed the “Arrangement for Cooperation on
Civil Aviation”. Under the Arrangement the two countries will promote and support the
development of training and technical cooperation in the field of Civil Aviation. The type
of cooperative activities will include civil aviation programmes; sending and receiving
experts or instructors for training purposes; acceptance of licenses; acceptance of
aeronautical products including but not limited to aircraft, engines, propellers and parts,
and aviation services; organization of seminars; exchanging information on activities,
policies, practices and laws and regulations concerning civil aviation, including but not
limited to safety and environmental matters; and visits and exchanges of technical
personnel or other experts. A Joint committee of the two countries will be formed to
determine and oversee mutually acceptable cooperation activities. The committee will
also develop a Programme of Cooperation. The designated airlines of both sides are
entitled to seven services per week in each direction. However, neither side is operating
at present.
35. DGCA has approved the Winter Schedule 2012 of all scheduled domestic airlines except
Kingfisher Airline and a regional airline Air Mantra effective from 28th Oct 2012 will
continue till 26th
March 2013. Winter schedule is based on the number of flights that each
commercial airline wants to operate. In all, 10,935 departures per week have been
approved, which translate into 1562 daily departures to and from 73 airports. The total
number of departures in 2011 was 13,541. The total number of flights in 2012’s winter
schedule is 19% less than 2011 due to lower demand for slots by the full service carriers.
36. Government has decided to permit private firms to use oil PSU-owned jet fuel facilities
like refueling terminal and storages at Chennai and Kolkata airports from March 2013.
Currently open access to ATF facilities exists at Delhi, Hyderabad and Bangalore
airports.
37. AAI has sought legal opinion on cancelling the ground handling contract awarded to
Bhadra International at seven of its airports in the country.
Page 9 of 27
38. GMR Group has accused Air India of “unauthorized appropriation” of fees levied via
ticketing on passengers taking flights from Delhi and Hyderabad Airports. GMR
complained to MoCA that this was affecting its “cash flows” and “finances” at both
airports. GMR also wants an “escrow account” set up so that such funds are promptly
paid to the airport operator. For DIAL, AI owes Rs 566 crore and for GHIAL it owes Rs
100 crore.
39. The territorial administration of Puducherry has started negotiations with private airlines
to start services from Puducherry.
40. Punjab Government is constructing a heliport at Mann village. The heliport, to come up
at over 20-25 acres, will facilitate easy landing and flying of helicopters of Chief Minister
Prakash Singh Badal and Deputy Chief Minister Sukhbir Badal. The Defence Ministry
and Air Force authorities have also given no objection certificates (NOCs) for the
proposed heliport with some conditions which are only visual flight rules shall be
undertaken, vertical extent shall not exceed 650 m above the sea level, all flights will
operate in coordination with the Bhisiana Air Force station, no separate airspace shall be
earmarked for the heliport.
41. MoCA is considering an audit of the functioning of DIAL. The so-called “probity audit”
will be conducted by an auditor appointed by MoCA and will review the functioning of
the 11 joint venture companies created by DIAL. The 11 JVs were created by DIAL to
manage all of its non-aeronautical revenue streams, including cargo, food and beverages,
duty free and ground handling. A probity audit is one that focuses more on transparency,
equity and fairness in the selection process of a private service provider in any public-
private partnership project.
42. The Serious Fraud Investigation Office (SFIO) has submitted an internal report to the
corporate affairs ministry criticizing the business model of Kingfisher Airlines. The
report blames Kingfisher Airlines for misusing the funds sourced from its parent
company. These funds were essentially given towards the airline’s branding, but were
used for day to day variable expenditure. The report also mentioned that the purchase of
Air Deccan was flawed and added to the woes of the troubled airline. The report says that
the cost of operating the airline was inordinately high and therefore unsustainable.
43. According to CAPA, domestic airlines have posted combined losses of $470 – 550
million in the second quarter of the current fiscal. CAPA in its latest estimates on airline
profitability said Indian carriers had returned to making losses in the second quarter
because of significant structural challenges. CAPA said that IndiGo is estimated to either
break-even or post losses of around $5.7 million. According to CAPA, private airlines
could turn profitable in the December quarter on strong yields and better load factors.
The private carriers collectively could post a profit of $120-140 million for the quarter
although Air India will keep the sector in red. CAPA said AI will post a loss of $189-226
million for December quarter. Other carriers are expected to post a profit in the
December quarter. GoAir is estimated to post a profit of $7.5 to 9.4 million, IndiGo $47
to 57 million, Jet Airways $38-47 million and SpiceJet $25-28 million.
44. CAPA has said that Kingfisher Airlines would require closer to about $700 million to
“actively re-launch the airline” but admitted that “this was looking less likely.”
Page 10 of 27
45. According to CAPA, SpiceJet is in discussion to order 30-40 Boeing 737 MAX aircraft.
The Latest CAPA report ‘Analysis of Indian Carriers Q2FY13 Performance’ states that
the order comes in the backdrop of the airline taking a long-term perspective with respect
to its fleet requirements.
46. Minister of Civil Aviation Shri Ajit Singh on 25th October met the representatives of
airlines, airport operators and senior Government officials to address their apprehensions
about the new policy of the Government on ground handling of flights at Indian airports.
The new policy will be implemented from December 31. The airline representatives
initially raised their apprehensions regarding problems they will face after
implementation of the proposed policy in terms of increase in the cost of ground handling
and adjustment of their employees engaged in ground handling operations. They
emphasized that the airlines be allowed self-handling at six metro airports also on the
pattern of non-metro airports. Shri Singh said that the new policy has been framed after
approval of Cabinet Committee on security (CCS) with the prime objective to minimize
safety and security risks. This also aims at bringing economies of scale, ensure optimal
utilization of personnel and equipment and bring standardization. Allaying the fears of
the airlines regarding monopoly of few ground handlers Shri Singh clarified that there
can be as many ground handlers as can fulfill the conditions stipulated in this regard
except airlines themselves. The Minister said that even airlines can create their
subsidiaries for the purpose of ground handling and these subsidiaries can participate in
the process to become designated ground handler. However, he clarified that outsourcing
of employees is not permitted due to security reasons. He also called upon the airlines to
motivate low cost ground handlers from across the world to come to India and participate
in the Indian operations to bring competitiveness and cost effectiveness. He also
informed that the MoCA and AAI are looking into rationalization of royalty to be paid by
ground handlers to airport operators including AAI so that the cost of ground handling
remains reasonable.
47. MoCA’s plan to boost regional air connectivity has got support from 3 states – West
Bengal, Gujarat and Madhya Pradesh. These 3 states have agreed to provide financial aid
to regional flight operators if the passenger falls below a certain level. This means that if
a regional airline is not able to get a load factor of a certain percentage, the state
government might either partially or fully pay for it. The amount of such compensation
would be finalized only after the new route dispersal guidelines are formulated.
48. MoCA is also proposing to set up a regional connectivity fund to help flight operators
avoid major financial losses. The proposal has been approved by the Planning
Commission. MoCA is now in the process of appointing a consultant to examine the
feasibility of creation of such a fund, its sources, management and how would the fund be
utilized.
49. MoCA has turned down DIAL’s plea to deduct its dues from Air India from the revenue
it shares with the AAI. AI’s dues have mounted to Rs 700 crore.
50. Odisha Government has approached ICAO to extend support in assessing the state’s
potential in the civil aviation sector soon and help build a roadmap for developing
Greenfield airports and other infrastructure. The state government is keen on improving
air connectivity, intra-state, inter-state and international, to meet the growth challenges in
future. Odisha currently has 17 airstrips and 16 helipads. The state government is
Page 11 of 27
planning to develop at last 5 Greenfield airports including at upcoming industrial centres
like Paradip, Dharma, Angul, Kalinganagar and Rayagada.
51. MoCA has restructured the Aircraft Acquisition Committee (AAC) by introducing an
independent expert in the committee. The new addition in the 6-member committee is a
former DGCA member Shri HS Khola. Till now, the committee had members only from
the government which include financial advisor and a joint secretary in the ministry,
DGCA, head of BCAS and Chairman, AAI. The committee clears aircraft acquisition
plans of all the airlines.
52. Kargil District is likely to be connected through regular air service as the Civil Aviation
Department is set to take trial flight soon for the mountainous region.
53. Shri K.C. Venugopal has taken over as the minister of state (MoS) for civil aviation on
October 28th
. Shri Venugopal will assist Shri Ajit Singh, Minster of Civil Aviation in
handling the Ministry.
54. AAI will inaugurate Calcutta Airports’ integrated terminal by the end of January 2013.
55. Minister of Civil Aviation Shri Ajit Singh has written to UP Chief Minister Akhilesh
Yadav to expedite transfer of land and take other measures at Agra, Jhansi and Meerut.
Minister has sought acquisition and transfer of 55.29 acres adjacent to the Agra’s IAF
airport boundary for building a new civil enclave. Minister also sought immediate
transfer of the airstrip at Meerut to the AAI along with 427 acres for developing an
airport there. For Jhansi, Minister said the Jhansi Airport was with the erstwhile National
Airports Authority of India in 1986 and was handed over to the Army in 1990 “without
the concurrence/co-ordination with AAI”. Minister has asked the State Government to
take expeditious steps to transfer it back to the AAI and hand over 20 acres to carry out
development work there.
56. The revenue department is likely to move the Supreme Court against tax dues amounting
to Rs 329 crore owed by KFA after the carrier got a stay last month against the tax
authorities in the Karnataka High Court. The Karnataka High Court on September 26th
restrained tax authorities from attaching the airlines bank accounts. KFA’s tax dues with
the income tax (IT) and service tax department are Rs 269 crore and Rs 60 crore
respectively.
57. The Madhya Pradesh government is planning to set up an air cargo hub either at Bhopal
or Indore for which 500 hectares of land would be acquired near existing airports.
58. The Oil Ministry has rejected the demand of MoCA to include ATF under the regulatory
regime of Petroleum and Natural Gas Regulatory Board. In its response, the oil ministry
said that there is no necessity to notify ATF as a notified petroleum product, as there is
no requirement of any regulatory body for maintaining or increasing ATF supplies or for
securing its equitable distribution or ensuring adequate availability. As per data with the
oil ministry, total production of ATF stood at 9.9 million metric tonnes (MMT) during
the year 2011-12, while the consumption was just 5.5 MMT. As per PRGRB act,
notification of a petroleum product is only required for maintaining or increasing their
supplies or for easy distribution for proper availability.
Page 12 of 27
59. AAI would soon approach the Finance Ministry with the proposal to raise funds through
an Rs 3,000 crore infrastructure bonds to finance modernization of non-metro airports.
60. Fraport on 31st October said it will exit the Delhi airport by selling its entire 10% interest
by June 2013 and is in discussions with JV partner GMR Group in this regard. Fraport
representative said that the company “is open to further investments in India but would
like policy clarity before that”. Fraport is also keen on looking at the proposed Navi
Munbai airport.
61. Essel Infra, the infrastructure arm of diversified Essel Group, will bid for the Navi
Mumbai and Goa Airport projects with Houston based consortium partner ADC & HAS
Airports Worldwide.
ATF FUEL PRICES
1. On 15
th October 2012, Jet fuel prices were cut by 3% on the back of rising rupee.
Page 13 of 27
2. AIRPORTS
AAI MANAGED AIRPORTS
1. Union cabinet on 4th
October declared the airports at Lucknow, Varanasi, Tiruchirapalli,
Mangalore and Coimbatore as International Airports.
2. Trivandrum International Airport has been adjudged the best maintained international
airport of the 10 airports governed by AAI, with a rating of 4.48 on a 5 point scale on the
airport service quality (ASQ) survey by ACI for the April-June 2012 period. Calicut
International Airport came second with a rating of 4.19 and Guwahati International
Airport came third with score of 4.18.
APAO MEMBER AIRPORTS
2.1 Bangalore International Airport Pvt. Ltd.
1. Microsoft Windows 8 operating system was launched at BIAL. With this, BIAL has
become the first airport in the country to integrate the Microsoft Windows 8 operating
system.
2. BIAL celebrated ‘Joy of Giving’ week. BIAL employees assisted and mentored 21
children from their partner NGOs, throughout the day talking about shaping up their
future. As a part of the Joy of Giving week celebrations, a special airport tour and
luncheon for the driver community at BIAL and a cash donation drive for passengers was
also organized.
2.2 Cochin International Airport Pvt. Ltd.
1. CIAL has registered a net profit of Rs 102 crores and a total revenue if Rs 276 crore for
2011-12. CIAL’s net profit stood at Rs 90 crore ands total revenue was at Rs 245 crore
during 2010-11.
2.3 Delhi International Airport Pvt. Ltd.
1. DIAL has launched “GMR Delhi Airport”, an application on Windows 8 in collaboration
with Microsoft, which will provide information on flights, weather and all passengers’
facilities such as transfer and parking at the airport. The other information the application
will prove includes shopping offers – books, food, confectionaries, electronics, Café bars,
fashion, beauty, wellness and upcoming events and a diverse range of products.
2. DIAL has got ISO 20000 certification for its technological ability to eliminate and
control information technology (IT) related threats on its IT service management system.
With this, DIAL has become the sixth airport in the world after Dubai, Munich, Abu
Dhabi, Incheon and Hyderabad to get the certification. The ISO 20000-1:2011 is a
service management system (SMS) standard that specifies requirements for an IT service
provider to plan, establish, implement, operate, monitor, review, maintain and improve an
SMS.
Page 14 of 27
3. DIAL on 9th October has formulated and submitted its “airport carbon emission
inventory framework” to MoCA.
4. GMR Group which runs DIAL is willing to pick up the 10% equity stakes each of its
joint venture partners –Fraport and Eraman Malaysia – which want to pull out of DIAL.
2.4 GMR Hyderabad International Airport Pvt. Ltd.
1. GHIAL partnered Ushalakshmi Breast Cancer Foundation (UBF) to extend the PINK
RIBBON CAMPAIGN 2012. UBF conducted a 3-day awareness campaign for Breast
Cancer, which is an integral part of the ‘Pink Ribbon’ campaign from 16th to 18th Oct
between 8 AM to 8 PM at domestic departures, post SHA at GHIAL’s Rajiv Gandhi
International Airport terminal.
2. GHIAL on 17th October withdrew a cheque bounce case against Kingfisher Airlines in a
court after the airline agreed to pay the outstanding amount due to it. On October 12, the
court had issued non-bailable warrants against Kingfisher Airlines, Vijay Mallya and four
top executives of the airlines who failed to appear before it in connection with the case
related to dishonouring of cheques worth Rs 10.5 crore.
3. To commence Holy Hajj operations successfully and hassle free like every year, GHIAL
provided excellent facilities at the Haj Terminal for the convenience of the pilgrims. The
facilities at the Haj terminal included Separate area for passengers and visitors, Separate
toilets for males and females passengers at the passengers and visitors area, Departure
Lounge, Security Hold Area has Tea/Coffee & snacks joints, telephone booth with
local/STD/ISD, Forex Counters & Duty Free, First Aid facility, Paid Parking for the
vehicles of passengers and greeters etc. A Prayer Hall is also provided for Male and
Female Passengers with facilities for Vazu (ablutions).
2.5 Mumbai International Airport Pvt. Ltd.
1. As per the newspaper article, Mumbai Airport is the most cost efficient airport with the
cost per passenger to be Rs 88. In 2011-12, Mumbai airport handled 29.07 million
passengers and the total project cost presently stands at Rs 12,380 crore.
2. MIAL on 9th October released its first comprehensive corporate sustainability report,
titled “The Sustainability Report 2012” that complies with the rigorous international
standards of the Global Reporting Initiative (GRI). With this, CSIA becomes the first
airport in India to report on sustainability. This comprehensive report that follows GRI
G3.1 Airport Operator Sector Supplement guidelines, is a first for Indian Aviation Sector,
and only the second in Asia, to achieve the coveted ‘A’ Level by GRI for its
completeness, transparency and stakeholder inclusiveness.
The report contains detailed disclosure aimed at providing all stakeholders with relevant
information on the performance of MIAL based on the key sustainability parameters,
namely, Economic, Environment and Social performance. The report is a part of a larger
initiative to develop and implement Airport Sustainability Management Framework to
further enhance MIAL’s all round performance.
Page 15 of 27
3. MIAL has made elaborate arrangements for Haj pilgrims at CSIA in an effort to make
their travel hassle free. These include amongst others, a huge pandal fitted with tube-
lights, fans, chairs as well as separate rest rooms for men and women covering an area of
9,000 sq. meters at the arrival plaza 2C at CSIA. A separate gate was also assigned at the
arrival 2C for Haj pilgrims to be used for departure where they can complete their
immigration formalities and security checks in dedicated counters and then move on to
the mezzanine floor to board their flights. The arrangements were made in close
coordination with other agencies such as customs, immigration, police and various
airlines. The first batch of pilgrims left from CSIA on October 6, 2012 and departures
will continue until October 22, 2012. Meanwhile the arrivals are slated to take place
between November 1, 2012 till November 28, 2012. It is expected that around 7000 Haj
pilgrims will fly out from Mumbai this year.
Page 16 of 27
3. AIRLINES
1. Spirits Airlines, a private airline, will connect Purnea (Bihar) with Patna and Kolkata
from 6th
November. Spirits Airlines will operate a nine-seater plane on the two routes.
3.1 Air India (AI)
1. AI has received its 3
rd Boeing 787 Dreamliner on 9
th October. From October 15, AI
deployed one of its Boeing 787 Dreamliner for long-haul international operations with a
flight to Frankfurt from New Delhi.
2. AI Express from October 28 increased 27 flights a week to Gulf destinations from Kerala
and Mangalore. The airline in its winter schedule beginning October 28th
will increase its
services from three international airports in Kerala and Mangalore in Karnataka to Gulf
destinations from 92 services a week to 119 services – an increase of 27 flights a week.
3. Air India will reintroduce its direct flight between Thiruvananthapuram and Riyadh in
Saudi Arabia from December 5 and deploy Boeing 747 Jumbo Jets.
4. MoF on 9th
October approved the “unconditional sovereign guarantee” of AI’s Rs 7400
crore non-convertible debentures. The NCD will have a tenure of 19 years and the
interest payable will not exceed 9.2% - 70 basis points above the 10 year benchmark GoI
security.
5. The new Crew Management System at AI has the facility for AI pilots to decide whether
or not they wish to fly with a particular crew member.
6. AI is planning to start a website under the Air India Holidays brand to sell vacation
packages.
7. AI is planning to monetise the properties its assets. AI has properties worth Rs 8500 crore
and has hired a real-estate consultant to draw up a plan.
8. AI is selling 5 Boeing 777 planes and has invited bids from 19th
October. The Bid closes
on November 19. AI has also started the process to lease out around 1,59,000 sq ft space
at Nariman Point in Mumbai and on 19th
October invited bids for leasing out total 12 of
its 23 floors with 3rd
November being the last date for submission of interest. Each
applicant will have to pay earnest money deposit of minimum Rs 50 lakh per floor
subject to maximum of Rs 1 crore. AI is also moving its headquarters to New Delhi form
Mumbai.
9. AI’s subsidiaries Air India Transport Services Ltd – Ground handling unit and Air India
Engineering Services Ltd – Engineering Unit will start operations from November 2012.
10. AI has withdrawn its decision to not fly live animals meant for scientific experiments. AI
admitted that the earlier decision had been taken after AI was “approached by PETA”
and that it had agreed to not carry animals “in order to avoid adverse publicity which
could prove detrimental to the image of Air India”.
Page 17 of 27
11. The Indian Commercial Pilot’s Association (ICPA) on 31st October appealed to Delhi
High Court that the Minister of Civil Aviation has no locus to pass an order asking AI
pilots and cabin crew to put in more flying hours by changing the flight duty time
limitations. The counsel for the ICPA said the Minister of Civil Aviation cannot be the
‘minister of Air India’ and sought the setting aside of the minister’s order. The counsel
further assess that the dispute was “governed’ by the industrial Disputes Act.
3.2 Kingfisher Airlines (KFA)
1. KFA engineers and pilots were on an indefinite strike from 1
st October to 25
th October
protesting delay on payment of salaries and since KFA was ordered by DGCA to get each
one of its flights certified by an aircraft maintenance engineer before take-off which led
to a partial lockout and suspended flight operations. The 26-day deadlock ended after the
management agreed to pay 4 months’ salary dues to its employees by December and the
striking workers decided to resume work with immediate effect. KFA CEO met DGCA
on 26th
October and informed that KFA would seek funding from the group company to
settle salaries and other dues and accordingly submit a revival plan in the next few days.
However DGCA informed that it would take decision on revoking the suspension of
flying license only after consultations with all stakeholders involved with the airline
including the airport developers and oil companies. KFA has paid 2 months’ salary to its
employees as on 31st October.
2. On 2nd
October DGCA summoned KFA CEO and asked the Airline to show their
operational preparedness and to start paying salary arrears for around 7 months to its
employees before DGCA could allow recommencement of its operations.
3. KFA on 4th
October got temporary relief as its bankers agreed to release Rs 60 crore
locked in an escrow account to pay employees salaries. The lenders have given KFA 1
month i.e. till October end to submit its revival plan. In case KFA fails to submit its
revival plan, the bankers may take drastic steps including auctioning the mortgaged assets
or selling pledged shares.
4. DGCA on 5th
October issued a show cause notice to KFA, to be replied by 19th
October,
that why its permit should not be cancelled or suspended under the provisions of Section
15(2)(b) of Schedule XI of the Aircraft Rules 1937 as the Airline has failed to establish a
safe, efficient and reliable service. On 19th
October, KFA sought more time to send its
reply to a show cause notice. DGCA suspended the Scheduled Operator’s Permit of KFA
with effect from 20th October, 2012 till such time the KFA submits a concrete and
reliable revival plan ensuring safe, reliable, efficient and sustainable Scheduled Air
Transport Services to the satisfaction of DGCA. The DGCA decided to suspend the
Airline’s permit after examining the Airline’s reply received on 19th
October to the Show
Cause Notice. DGCA observed that KFA have not addressed any of the issues raised by
the DGCA during the meeting held on 2nd
October and the points raised in the show
cause notice. They were asked to submit their operational preparedness plan for
resumption of flight operations. Instead, they have sought more time to file a reply to the
show cause notice not indicating any time frame for submitting the detailed response;
therefore, the request could not be acceded to by the DGCA.
Page 18 of 27
5. Bankers from the 17-member consortium that lent around Rs 7,500 crore to KFA said
that they will decide on how to proceed with the KFA account after a lenders meeting
and an SBI Capital report which are due by October end. They also said that they will go
in for recovery measures only as a last resort and expressed hope that KFA promoters
will be able to find an investor and resume operations. Lenders will be able to recover
just 10-15% of overall exposure if they monetise the pledged properties.
6. Hindustan Petroleum Corporation Ltd has encashed the bank guarantee provided by KFA
which was worth about Rs 434 crore. Till September, KFA owed Rs 341 crore in fuel
dues.
3.3 SpiceJet
1. SpiceJet has floated a holiday packaging division called SpiceJet Holidays to woo
passengers by selling holidays with tickets.
2. SpiceJet is planning to expand its domestic and international footprints by acquiring
aircraft and increasing the number of flights to overseas destinations. SpiceJet is planning
15-20% capacity addition on the international network in the next 2-3 years from the
current 6% of the total capacity.
3.4 Jet Airways
1. Jet Airways has tied up with IBM to calculate, track and report aircraft emissions. IBM’s
Integrated Emission Management gives Jet Airways a process to analyse and calculate
individual aircraft emissions, which is a complex process involving comparison of flight
records and fuel usage data contained in multiple systems ranging from internal aircraft
systems to regional navigation data and flight records. The solution ensures that all flight
emissions are properly calculated and reporting is accurate and timely.
2. Jet Airways has announced special fares along with hotel rooms that it calls JetEscapes to
woo passengers.
3.5 Indigo
1. IndiGo has floated a holiday packaging division called Get Packing to offer affordable
holiday packages to business, leisure and religious travellers.
3.6 GoAir
1. GoAir has started a holiday packaging division called GoTravel to woo passengers by
selling holidays with tickets.
3.7 International Airlines
1. Virgin Atlantic airline has resumed its London-Mumbai flights from 29th
October after a
gap of three years.
Page 19 of 27
2. British Midland International has discontinued its Amritsar-Almaty-London flight form
27th
October.
3. All Nippon Airways (ANA) has launched non-stop daily flights between Delhi and
Tokyo from 28th
October.
4. SilkAir has launched its direct flight between Singapore and Vishakhapatnam from
October 28th
and has become the first airline to provide non-stop international air
connectivity form Vishakhapatnam.
Page 20 of 27
4. CARGO
1. Air Cargo Forum India (ACFI) was launched on 10
th October 2012 to support and
promote the entire air cargo logistics industry. Various stakeholders of the air cargo
industry - airlines, cargo terminal operators, freight forwarders – have got together to
form ACFI. ACFI will work as a catalyst to facilitate air cargo growth and work toward
bringing economic efficiencies in the system. It will also collaborate with the government
for user-friendly policy and regulation.
2. IATA Cargo Operations Advisory Group (COAG) has been established to bring together
members from airlines and ground handling agents to develop best-practice processes and
procedures in order to address all aspects of cargo acceptance and handling. The COAG
will be working on the review, improvement and development of cargo operations
processes and procedures for incorporation into the IATA Airport Handling Manual
(AHM) and IATA Ground Operations Manual (IGOM). The objective is to develop
operations processes that can be adopted by airlines and ground handling agents and will
ultimately lead to a greater degree of standardisation and harmonisation for cargo
acceptance and handling
3. As per the provision of the Drug & Cosmetics Act, 1940 a No-objection Certificate from
Assistant Drug Controller (ADC) is required for the import of drugs and other specified
items capable of dual use. Due to this requirement, many items get referred to ADC for
NOC resulting in delay in clearances. With a view to streamline the process the following
procedures is now being prescribed by Mumbai customs:
a. No requirement for ‘NOC’ from ADC, if the importer/CHA presents a copy of past
Bill of entry containing the remark of on-requirement of NOC from ADC (remark in
original) for the item under assessment (for the same importer).
b. In RMS facilitated Bills of Entry, notwithstanding the CCR instructions, the Shed
Offices shall not insist for ADC/NOC is the importer/CHA presents a copy of the past
Bill of Entry containing the remark of non-requirement of NOC from ADC (remark
in original) for the item under clearance (for the same importer).
The procedure is being prescribed till February 28, 2013 after which it will be
reviewed to consider its continuation.
4. Delhi Customs has launched an e-helpline for the trade and industry in Delhi Customs
Zone comprising of the Commissionerate of import and General, Air Cargo Export and
ICD, Tughlakabad. The e-helpline is being launched at the zonal level for clarifying the
doubts of trade and industry in an administrative friendly manner without the assesses
having to come to offices of the department.
5. Bengaluru International Airport has received the No Objection Certificate (NOC) from
the Drugs Controller General (India) for the import of drugs by air into India.
Accordingly, the office of Asst. Drugs Controller India, CDSCO, Air Cargo Complex,
Bengaluru International Airport will be accepting the import Bills of all bulk drugs,
formulations, reagents and diagnostics kits, cosmetics, medical devices, Ayurvedic and
Page 21 of 27
Homoeopathic Drugs which are imported at Bengaluru airport by both cargo and courier
mode from October 1, 2012.
6. The Bangalore Commissioner of Customs has notified the trade regarding a change in
transhipment procedure of courier shipments from Bengaluru Airport. As per Public
Notice No 41/2012 CUS, goods imported by authorised Couriers shall be allowed for
transhipment by the Assistant/Deputy Commissioner of Customs (Courier), Bangalore
subject to provisions of section 54 and 55 of the Customs Act, 1962 and Goods Imported
(conditions of transhipment) Regulations 1995 and Courier Import and Exports
(Clearance) Regulations, 1998 (Courier Regulations 1998).
7. According to Boeing’s newly published Boeing World Air Cargo Forecast 2012-13, the
air cargo market will grow at 5.2% per year over the next 20 years. Since 2001, world air
cargo traffic has only grown 3.7% per year. The global economic downturn, rising fuel
prices and improving surface transport mode options have dampened air cargo growth.
Boeing cites secular trends such as “international trade growth, the continuing
globalization of industry, increasing adoption of inventory-reduction strategies and
ongoing renewal of the world freighter fleet with more efficient capacity” as the basis for
continued optimism.
8. IATA has developed a new set of air transport regulations that become effective 1st
January 2013 to provide safe transport of the lithium batteries. Lithium batteries can be
found in everything from consumer applications (watches, mobile phones, computers
etc.) through industrial applications (communications, automobiles etc.).
9. Air Cargo Complex at Mangalore airport has sought approval of CBEC. The new
complex will help in expediting perishable cargo moving out of Mangalore which
currently was routed through other neighbouring airports resulting in delays and losses to
the trade.
10. Bonded Trucking Cargo Service has commenced at Trichy Airport from 19th
October.
Due to the shorter runway, big bodied aircraft cannot land at the airport, importers can
now receive their cargo by road from the nearest bigger airport such as Chennai which
can accommodate wide-bodies 747 aircraft required for long haul routes. Though
currently only available for inbound cargo, the service is available for export shipments
as well as per requirements.
11. GMR Infrastructure and Container Corporation of India (Concor) has launched a
dedicated air freight service for an Inland Container Depot (ICD). This means that
airlines will now be accepting cargos at the ICD itself and all prior custom clearances and
claim of duty drawback will also happen at the container depot. It will cut down the cost
and time involved in shipping and will also reduce the multiple handling of the air cargo
thus ensuring better protection and minimal transit risk of the cargo items. The “first of
its kind initiative” was launched at ICD, Kanpur on 18th
October. Bonded Trucking
Service will be used for transiting goods between ICD Kanpur and Delhi Airport.
12. According to IATA, International air cargo volume fell in August year-over-year for the
second consecutive month, with industry wide traffic down 1.3%. Volume declined 0.8%
from July. The year-over-year drop came on a slight 0.7% increase in capacity. The
Page 22 of 27
capacity increase marked a return to year-over-year growth; in July, available freight
metric ton kilometers fell 0.2% year-over-year. The Middle East saw strong growth in
August versus 2011, with international air cargo freight metric ton kilometers up 11.4%
on a 10.5% increase in capacity, continuing a pattern seen all year. Africa also saw
double-digit percentage growth in volume up 11.1% on a 7.9% increase in capacity.
North American volume rose slightly, up 1.8%, although available capacity fell 2.1%,
continuing a pattern of year-over-year declines seen since June. The Asia-Pacific region
experienced its sixth straight month of year-over-year declines in international air cargo
volume in August, with freight metric ton kilometers down 6.3% and available capacity
off 3.7% versus the same month in 2011. Volumes were down year-over-year in Latin
America and Europe as well, 3.6% and 1.1%, respectively, on corresponding capacity
increases of 13.1% and 1.4%.
13. ACI’s latest report, Global Traffic Forecast 2012-2031, has reported that in 2011 global
freight shipments totaled around 93 million tons. With 4.5% growth forecast for the next
20 years, ACI said volumes in 2013 would reach 225 million tons.
Page 23 of 27
5. AERA APPELLATE TRIBUNAL
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 5th
October 2012. After brief
hearing, the matter was adjourned for 19th
October, 2012. Parties reported that the
pleadings are not complete as yet. They were directed to complete the same before that
date as there shall be no adjournment on that count. On 19th
October hearing, the matter
was further adjourned for 22nd
and 23rd
November, 2012.
2. Appeal No. 11/2012 (with IA No. 11 for stay) of Lufthansa German Airlines & Ors. Vs.
AERA & Anr. (DIAL) came up for hearing on 5th
October 2012. After brief hearing, the
matter was adjourned for 19th October, 2012. Parties reported that the pleadings are not
complete as yet. They were directed to complete the same before that date as there shall
be no adjournment on that count. On 19th October hearing, the matter was further
adjourned for 22nd and 23rd November, 2012.
3. Appeal No. 10/2012 (with IA No. 14 for interim relief) of DIAL Vs. AERA came up for
hearing on 5th
October 2012. The matter was adjourned for 19th
October 2012. Parties
reported that the pleadings are not complete as yet. They were directed to complete the
same before that date as there shall be no adjournment on that count. On 19th
October
hearing, the matter was further adjourned for 22nd
and 23rd
November, 2012.
4. Appeal No. 05/2010 of MIAL Vs. AERA & Ors. came up for hearing on 5th
October
2012. The appeal stands disposed of as withdrawn as the AERA is going to pass a final
tariff determination order shortly by the end of November, 2012 and there is no point in
considering the ad-hoc increase in tariff. The questions raised would be kept open while
considering the final determination of tariff.
5. Appeal No. 06/2011 of MIAL Vs. AERA came up for hearing 5th
October 2012. The
appeal stands disposed of as withdrawn as the AERA is going to pass a final tariff
determination order shortly by the end of November, 2012 and there is no point in
considering the ad-hoc increase in tariff. The questions raised would be kept open while
considering the final determination of tariff.
6. 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 19th
October 2012. After brief
hearing, the matter was listed for 9th
November, 2012.
7. Appeal No. 12/2012 of International Air Transport Association (India) Pvt. Ltd. Vs.
AERA & Anr. (DIAL) came up for hearing on 19th
October 2012. After brief hearing, the
matter was listed for 22nd
and 23rd
November, 2012.
8. Appeal No. 07/2011 of BIAL Vs. Union of India & Ors. came up for hearing on 19th
October 2012. After brief hearing, the matter was listed for 23rd
November, 2012.
9. Appeal No. 12/2011 of BIAL Vs. AERA & Anr. came up for hearing on 19th
October
2012. After brief hearing, the matter was listed for 23rd
November, 2012.
Page 24 of 27
10. Appeal No. 08/2011 of GMR HIAL Vs. AERA & Anr. came up for hearing on 19th
October 2012. After brief hearing, the matter was listed for 23rd
November, 2012.
11. Appeal No. 10/2011 of GMR HIAL Vs. AERA & Anr. came up for hearing on 19th
October 2012. After brief hearing, the matter was listed for 23rd
November, 2012.
12. Appeal No. 09/2011 of CIAL Vs. AERA came up for hearing on 19th
October 2012.
After brief hearing, the matter was listed for 23rd
November, 2012.
13. Appeal No. 11/2011 of CIAL Vs. AERA came up for hearing on 19th
October 2012.
After brief hearing, the matter was listed for 23rd
November, 2012.
14. Appeal No. 01/2012 of Federation of Indian Airlines (FIA) Vs. AERA & Anr. (DIAL)
came up for hearing on 19th
October 2012. After brief hearing, the matter was listed for
9th
November, 2012.
Page 25 of 27
6. TRAFFIC
1. Foreign Tourist Arrivals (FTAs) during the Month of September, 2012 were 4.15 lakh as
compared to FTAs of 4.02 lakh during the month of September 2011 and 3.70 lakh in
September 2010. There has been a growth of 3.2 % in September 2012 over September
2011 as compared to a growth of 8.7 % registered in September 2011 over September
2010. FTAs during the period January-September 2012 were 46.33 lakh with a growth of
5.9%, as compared to the FTAs of 43.75 lakh with a growth of 9.9 % during January-
September 2011 over the corresponding period of 2010.
2. Foreign Exchange Earnings (FEE) during the month of September 2012 were Rs. 6652
crore as compared to Rs. 5748 crore in September 2011 and Rs 4678 crore in September
2010. The growth rate in FEE in rupee terms in September 2012 over September 2011
was 15.7% as compared to 22.9 % in September 2011 over September 2010. FEEs from
tourism in rupee terms during January- September 2012 were Rs. 66061 crore with a
growth of 22.9%, as compared to the FEEs of Rs. 53761 crore with a growth of 16.6 %
during January- September 2011 over the corresponding period of 2010.
3. In September 2012, a total number of 1404 (Visa on Arrivals) VoAs were issued as
compared to 991 VoAs during September 2011 registering a positive growth of 41.7 %.
During the period January-September 2012, a total number of 10816 VoAs were issued
as compared to 8505 VoAs during corresponding period of 2011, registering a growth of
27.2%.
4. According to IATA, a slowing economy and high operating costs have affected domestic
passenger traffic in India which fell 9.9% year-on-year in September. September’s
domestic capacity fell 5.9%, dropping the load factor 2.9% points to 64.9%, the lowest of
any market.
5. Passengers carried by domestic airlines during January-September 2012 were 438.39
lakhs as against 442.18 lakhs during January-September 2011 thereby registering a
growth of -0.9%.
442.2
45.9
438.4
40.2
0
50
100
150
200
250
300
350
400
450
500
YoY MoM
Pas
sen
ger
Car
rie
d (
in la
khs)
2011 2012 Growth YoY - (-0.9%)
Page 26 of 27
6. Market share of scheduled domestic airlines for the month of September 2012.
7. Passenger Load Factor of scheduled domestic airlines for the month of September 2012.
Jet Airways, 18.1%
Jet Lite, 5.7%
Kingfisher, 3.5%
Spicejet, 18.5%
GoAir, 7.6%
IndiGo, 27.2%
Air India (Dom), 19.3%
66.1 66.0 68.6
53.2
67.2 67.7
73.4
9.1
65.2 63.5 66.1
58.4
64.4 67.7 69.0
12.0
0
10
20
30
40
50
60
70
80
Air India Jet Airways Jet Lite Kingfisher SpiceJet GoAir IndiGo Air Mantra
Seat
Fac
tor
(%)
Aug-12 Sep-12
Page 27 of 27
7. SOURCE
1. Airport Economic Regulatory Authority Appellate Tribunal (AERAAT)
http://compat.nic.in/aera.html
2. Ministry of Civil Aviation http://www.civilaviation.gov.in/
3. Press Information Bureau http://pib.nic.in/newsite/mainpage.aspx
4. News Articles published in various newspapers.
5. Bangalore International Airport Limited
6. GMR Hyderabad International Airport Limited
Association of Private Airport Operators (APAO), 710, 7th Floor, Surya Kiran Building, 19 Kasturba Gandhi Marg, New Delhi, India.
Ph: +91-11-41510916, Fax: +91-11-23329153
Web: www.apaoindia.com, e-mail: [email protected]