Indian PM orders Air India to resume Gulf flights...

The Indian government has overturned Air India’s decision to cancel some of its flights to the Gulf.

Indian Prime Minister has directly intervened to reverse the Air Indian decision and assure cabinet members from Kerala that the airline would continue to operate flights to the Gulf.

However, Air India has not yet been made aware of the government intervention. On Saturday, Air India Express announced that it would be canceling 75 flights from Kerala to the Gulf, including those to Muscat, Sharjah, Abu Dhabi and Dubai. Air India was also set to cancel 203 flights to the region from India. The airline blamed the decision on a lack of cabin crew to operate the flights.

My Views -

1. Should Govt. intervene in any of the PSU's operations directly overturning their decision.
2. Even so when the Airline is making huge losses in thousand's of crores which is being covered from the tax payer's pocket.
3. Also, the Govt. is not willing to bail off the Airline so easily & paying off its debt. Then, why intervening in its operational decisions.
4. What a mockery Air India has. On one hand it says its highly overstaff (32,000) people which is nearly 200+ people per aircraft & on the other hand its canceling flights due to lack of cabin crew.
5. Even if the Airline is short staff in one particular department how will Govt. make sure that they will operate flights without putting passengers life at stake.

Is the Govt./Airline listening?

Air India Express cancels 203 flights to Gulf...

A shortage of cabin crew is forcing Air India’s budget carrier, Air India Express, to suspend 203 flights between the sub-continent and the Gulf region, a senior official from the airline has warned.

The cancellations would last from next week until the end of October 2010, and would affect flights to Abu Dhabi, Dubai, Sharjah, Muscat and Kuwait.

"No passengers will be affected because of the cancellation, there is a rule that cabin crew should not exceed more than 1,000 hours of flying in a year. There is no way we will be able to meet this target unless we cancel some of the services."

Reports from India suggested that the cancellation had also been caused by the lean season following Ramadan holidays.

"Around 203 (73 from Kozhikode, 74 from Thiruvananthapuram and 56 from Kochi) flights stand cancelled. Some of these flights which originate from here, touch Kochi and then fly to the Middle East. Hence this is taken as two flights and hence the number looks so large," an IANS report claimed, quoting an airline spokesperson.

The flight numbers had been exaggerated, with the airline cancelling only one or two flights per destination.New recruitment policies were under way and that personnel were currently being trained up to solve the cabin crew shortage.

The Mangalore Air Crash

The fatal accident of the Air India Express plane is one of the deadliest in Indian Aviation history. I received this email as attachment from one of my close friends, which I thought to share with you :

SpiceJet aims international flights

Indian low-cost carrier SpiceJet has received in-principle approval from India's government to operate international flights, and plans to do so from June. It has applied to begin services to Colombo, Dhaka and Kathmandu. The applications are being processed, and it may start the new routes in our summer schedule. SpiceJet is likely to operate between Chennai and Colombo, Kolkata and Dhaka, and New Delhi and Kathmandu, says Sridharan, adding that Colombo will likely be the airline's first international destination. SpiceJet operates a fleet of 20 Boeing 737 aircraft, and expects to receive five more by next April. The carrier will focus on the three cities in its first year of international operations, and evaluate new destinations after that.

Air India may lose 'national carrier' tag

The Union Cabinet is set to meet soon to decide if beleaguered state-owned carrier Air India should retain its 'national' character at all. It will also debate if strategic disinvestment is the best way forward for the airline, which is estimated to have accumulated Rs 7,200 crore in losses in 2009-10. With most of Air India's woes emanating from its international operations - where it loses around Rs 3,000 crore a year on 30 routes - a group of ministers (GoM), chaired by finance minister Pranab Mukherjee, has recommended that the airline stop flying to these routes. "This will change the character of Air India," this would turn Air India into a regional airline. The civil aviation ministry is preparing a detailed note for the Cabinet on the carrier's financial health and turnaround measures recommended by the GoM. "Cutting down loss-making international routes will have serious implications. Basically, the government has to decide if Air India continues to fly abroad or within India alone". At the same time, the Cabinet may also debate the issue of strategic disinvestment as a long-term viable option for the carrier. "The government cannot pump money into the National Aviation Company of India Ltd (Nacil) forever". But, it is likely that the Cabinet refers back some of these issues to the GoM for its detailed and considered. A major blow to Nacil's finances comes from prestigious but loss-making daily non-stop flights to New York from Delhi and Mumbai on the latest long-range fleet of Boeing, accounting for losses to the tune of Rs 750 crore a year. The GoM, set up to monitor Air India's turnaround plan, was also to decide on the politically sensitive matter of wage cuts of Air India's 31,000 employees. But it has now left the decision for the Cabinet. To avail government bailout, the carrier was asked to undertake cost-cutting measures that would help it save around Rs 2,000 crore by March 2010. Air India was able to cut costs to the tune of Rs 700-800 crore till December last year. As part of its turnaround strategy, the carrier has shortlisted five candidates for the post of chief commercial.

The carrier recently received a shot in the arm with the government releasing Rs 400 crore as a first tranche towards equity infusion. Air India had asked for Rs 5,000 crore as equity infusion and a letter of comfort from the government to convert its high-cost debt into low-cost ones.

Indian Aviation 2010 Snapshot

The Indian aviation industry is one of the fastest growing aviation industries in the world (& incurring maximum losses) with private airlines accounting for more than 75 per cent of the sector. With a CAGR at 18 per cent and 454 airports and airstrips in place in India, of which 16 are designated as international airports, Union Civil Aviation Minister Praful Patel has stated that aviation sector will witness revival by 2011. With an increase in traffic movement during December 2009 and increase in revenues by almost US$ 21.4 million, the Airports Authority of India seems set to accrue better margins this fiscal, as per the latest estimates released by the Ministry of Civil Aviation. This is being primarily attributed to increase in the share of revenue from Delhi International Airport Limited (DIAL) and Mumbai International Airport Limited (MIAL) along with increase in airport charges. The Hyderabad International Airport has been ranked amongst the world's top five in the annual Airport Service Quality (ASQ) passenger survey along with airports at Seoul, Singapore, Hong Kong and Beijing. The Hyderabad International Airport is managed by a public-private joint venture consisting of the GMR Group, Malaysia Airports Holdings Berhad and both the State Government of Andhra Pradesh and Airports Authority of India (AAI). Airports Authority of India (AAI) is also spending US$ 427.5 million on developing the airports in Kolkata and another US$ 384.7 million on Chennai airport. The AAI is also looking at upgrading and modernising 35 non-metro airports. Both Chennai and Calcutta airports will be completed by next year. In addition to actual airport infrastructure, the government is also looking at building infrastructure in the air in terms of air traffic control (ATC) and CNS systems. Safety and surveillance is another huge area being worked upon. The civil aviation ministry has prepared a blueprint to convert Delhi airport into an international hub for passenger airlines with effect from August 2010 to help the airport, which is being expanded by a GMR-led consortium, utilise large amounts of additional capacity that will be ready by July 2010. Under the plan, NACIL will set up its hub in Delhi (Delhi currently serves as the hub for domestic operations and Mumbai for international operations).The government is also planning to make Delhi a regional hub to connect south-east Asia to Europe by capitalising on the capital’s strategic mid-point location, according to ministry sources. State governments too are taking interest in setting up special economic zones (SEZs) for the aerospace industry.

• Investment Policy With the draft FDI compendium being finalised in end of March 2010, changes are expected in the aviation policy too. Currently, Foreign equity participation in airport infrastructure is permitted upto 74 per cent with automatic approvals and upto 100 per cent in special permission. FDI upto 40 per cent is permitted in domestic air-transport services. Foreign investors are allowed to have representation (upto 33 per cent in domestic airline companies).
• The Road Ahead Investment opportunities of US$ 110 billion are being envisaged up to 2020 with US$ 80 billion in new aircraft and US$ 30 billion in development of airport infrastructure, according to the Investment Commission of India.
• Indian aerospace companies are growing too. Hindustan Aeronautics Limited (HAL) was ranked 40th in Flight International's list of the top 100 aerospace companies last year.
• Aircraft manufacturing major, Boeing is in the process of setting up the US$ 100 million proposed Maintenance Repair Overhaul (MRO) facilities in Delhi. Air India is also in the process of launching Cargo Hub in Nagpur while Deccan Aviation has already started one from the city.
• North India's first private sector greenfield international airport, Aerotropolis, will soon come up near the industrial hub of Ludhiana in Punjab. Aerotropolis will be built with an allocation of almost US$ 3.77 billion covering an area of 3000 acres by Messrs Bengal Aerotropolis which has partnered Changi International Airport of Singapore.
• Punjab will also become the first state in the country to set up a Maintenance, Repair and Overhaul (MRO) hub at Ropar, 45 km from Chandigarh, for the civil aviation sector at a cost of US$ 6.4 million
• The country's first SEZ dedicated to the Aerospace Hattaragi, 37 km from Belgaum, in Karnataka was also inaugurated. The SEZ is spread over 300 acres of land and will come up with an investment of US$ 32.06 million.
• An Aerospace and Precision Engineering Special Economic Zone with a proposed investment of US$ 641.2 million has also come up at Adibatla, Ranga Reddy district, Andhra Pradesh.

Aged jets to be trashed

Domestic carriers operating jets that are more than 15 years old will have to look for replacement soon, as the civil aviation ministry has decided to gradually phase out older aircraft to check noise level around airports. The development follows complaints from people living around the country’s busiest Delhi airport about the rising noise levels. The new rules are likely to affect foreign airlines more as they would be also be barred from flying aged jets. Most of India’s domestic carriers have relatively new fleet, including air India. “We would have almost a brand new fleet by March this year as we would have either phased out or sold our old aircraft by then,” an Air India official said adding once all the new aircraft is inducted the average fleet age would be 2-2.5 years. The government has in the past received complaints from the passengers who have alleged that some foreign carriers deploy older aircraft on India-bound flights. “Some airlines especially from Asian countries operate with older aircraft. While it is advised that air-carriers to not operate with aged jets, we are examining the legal aspect of barring such airlines from flying such aircraft to India,” a senior civil aviation ministry official. The ministry would also ask the Central Pollution Control Board (CPCB) to specify the permissible noise level separately in the vicinity of airports in line with international norms. As per the globally accepted norms, the permissible noise is higher level in the vicinity of airports than other locations. India, however, does not differentiate between the noise level around the airport and other areas. In the last few years aircraft movement in the country has multiplied with more and more people flying on the back of growing economy and increasing incomes. The Capital’s Indira Gandhi International airport (IGI) now handles as many as 650 aircraft a day. The GMR-led consortium that is handling the Delhi airport has already introduced 24-hour aircraft noise and track monitoring system (ANTMS) to penalise erring aircraft on exceeding noise threshold values. The country’s largest airport operator Airports Authority of India (AAI) has also implemented mix mode operation to spread out the aircraft movement resulting into reduction in noise level.