|
 |
 |
 |
 |
 |
|
| |
Government gives DIAL Rs 1,827 crore bonanza
10/02/09 Business Standard
|
|
In a major concession to the Bangalore-based GMR-led consortium Delhi International Airport Ltd (DIAL) that is operating and upgrading Delhi airport, the government has allowed it to impose airport development fees (ADF) on passengers that will help them raise up to Rs 1,827 crore over three years.
The move also means that the government has forfeited its share of revenue since DIAL has been allowed to levy Airport Development Fees (ADF) and not User Development Fees (UDF).
Delhi airport, therefore, becomes the only airport in the country to be allowed to charge ADF. Bangalore and Hyderabad, new airports that came up under public-private partnership models, have been allowed to charge UDF which means they share 4 per cent of the revenue with the government. If DIAL had charged UDF, it would have had to share 46 per cent of the revenue with the government. Mumbai airport, which is operated and being upgraded by a GVK-led consortium has also asked for permission to levy ADF.
A few months ago Civil Aviation Minister Praful Patel had said the government would allow ADF and not UDF because the former could be imposed for a limited period.
The cash will be used to meet a funding gap in financing the airport modernisation project that has emerged because of poor response to a related hospitality project and a slowdown in passenger traffic. The project entailed an investment of Rs 8,975 crore.
The government has allowed DIAL to levy a development fee of Rs 200 per domestic passenger and Rs 1,300 per international passenger. The charges will come into effect from March 1 this year and will be levied for three years.
DIAL is a consortium of GMR, Fraport AG of Germany, Malaysia Airport Holdings, Indian Development Fund and Airports Authority of India (AAI).
A ministry of civil aviation statement said the approval is subject to the condition that DIAL will submit final project cost estimates within six months from the date the ADF is levied and latest by August 31, 2009.
|
|
|
| |
| |
Domestic carriers hike basic fares
10/02/09 India Infoline
|
|
Local airlines have increased their basic fares as they try to mitigate the impact from a sharp slowdown in demand for air travel and reduced load factor amid a worsening global economic environment.
While Air India, Jet Airways and Kingfisher Airlines have hiked basic fares across sectors by an average of Rs1,200-1,800 per passenger. The Mumbai-Delhi sector's basic fare has been increased by Rs1,800-2,200 per passenger.
On the other hand, low-cost carriers like Indigo, Go Air and Spice Jet have hiked basic fares by an average of Rs2,000 per passenger on major routes.
|
|
| |
|
M&M in talks with Australian aerospace firms
10/02/09 Shally Seth and Satish John/Livemint
The auto components and design engineering arm of Mahindra and Mahindra Ltd (M&M), Mahindra Systech, is in advanced talks with two Australian aerospace companies—one to acquire an aircraft components maker and the other to forge a joint venture for building eight- and 14-seater planes.
The deals, once sewn up, have the potential to deliver for M&M the same value that the Scorpio, its multi-utility vehicle, did some five years ago for the group’s auto business, said Hemant Luthra, president, systems and technologies, M&M.
“If we get it right, aerospace can do for Mahindra what Scorpio did,” Luthra said. “Anand (Mahindra) believes Mahindra Scorpio became a success because it was designed and manufactured at one-tenth the cost of manufacturing a new vehicle, and the market capitalization of M&M went up by 25 times in five years.” Anand Mahindra is M&M’s vice-chairman and managing director. Luthra declined to name the companies with which it is in talks or reveal valuations, but said the Australian aircraft components maker has been supplying components to Airbus SAS and Boeing Co., the world’s top two aircraft makers, for the past decade.
“If this deal goes through we will actually have something in hand that we can show the Boeings and Airbus of the world that this is our off-set capability. This fits in well with being able to fabricate those aircraft,” said Luthra. Under India’s off-set policy, foreign firms are required to source locally at least 30% of the value of defence equipment contracts exceeding Rs300 crore.
The talks for the purchase of the Australian firm, Luthra said, started on a golf course. “I was playing golf with one of their investors. He is a cricketer, retired, former chairman of Australian cricket selection board.”
The promoters, he said, are passionate about aircraft and have been in the Australian navy, air force, civil aviation, and have seen the latter half of World War II.
The acquisition would be finalized in the first half of 2009 and the joint venture in a few weeks, he added. Mahindra and Mahindra already has a small presence in aircraft manufacturing. Three years ago, the group acquired an 88.41% stake in Bangalore-based Plexion Technologies, which makes 2- and 5-seater aircraft. Plexion was then merged with Mahindra Engineering Services, a firm that is growing at 25% a year. The firm has a running contract with Bangalore-based National Aeronautics Laboratories (NAL) to jointly develop and own 5-seater aircraft. NAL is the country’s aerospace design lab, which is developing a 14-seater passenger plane called Saras. |
| |
| |
Air India may seek Rs 4K cr rescue package from govt
09/02/09 Press Trust of India/NDTV.com
Air India is likely to seek a revised rescue package of Rs 4,000 crore from the government at the upcoming meeting of its board later this month.
The package will be in the form of both additional equity and long-term loans, a source closely connected to the development said.
"The Cabinet note for providing an additional equity of Rs 1,250 crore is ready and approval for the same is expected shortly," the source said. In addition, Rs 2,750 crore worth long-term loans from banks and other financial institutions is also on the cards, the source said, adding that, "the package has to be announced before the proclamation of the general elections and subsequent imposition of the model code of conduct."
In the earlier package, the state-owned carrier had suggested an equity infusion of Rs 1,000 crore and a soft loan of Rs 1,500 crore to fund its fleet acquisition programme. The national air-carrier's Board is meeting in Delhi next week to adopt its annual accounts.
|
| |
| |
Flemingo awarded Pune Airport duty free concession as ITDC secures Coimbatore
09/02/09 Martin Moodie/Moodie Report
Flemingo Duty Free Shops, the sole bidder, has been awarded the Pune Airport duty free concession by Airports Authority of India. ITDC has gained the duty free contract at Coimbatore Airport, where the state-owned group was in a two-way contest with Flemingo. Pune Airport offers 60sq m of retail space (40sq m in Arrivals, 20sq m in Departures); while Coimbatore has a small 13sq m Arrivals offer only.
Passenger figures for the airports last year were Pune 32,035 and Coimbatore 52,288.
The contracts run for three years but could be shorter if the airports are leased out under the government’s Public-Private-Partnership Act before the concessions have run their course. |
| |
| |
GHIAL to host Routes Asia 2009, a premier event for airlines and airports
09/02/09 Equity Bulls
The 7th Routes Asia 2009, a premier event for airlines and airports to work together to sustain and develop air services, will be hosted by GMR Hyderabad International Airport Ltd (GHIAL) in Hyderabad from March 29th to 31st, 2009.
At Routes Asia, airports and airlines meet and do business, focusing especially on the Asia Pacific market. Building on the achievement of last year's event, where a record number of new opportunities were discussed, this 7th Routes Asia will be an ideal platform for the incredibly dynamic Indian airline and airport scene. New air services can and will be discussed, but in these difficult times, 'route recovery' strategies are expected to be high on the agenda. The forum not only reinforces the activities of the aviation industry throughout the year, but through the discussions and decisions taken at the event itself, it directly shapes the region's future air networks.
Commenting on the event Mr. A. Viswanath, Chief Commercial Officer of GHIAL said, "Despite the current meltdown, the continuing growth of air transport in the Asia Pacific region provides Routes Asia 2009 an opportunity to offer a unique platform for airlines and airports to discuss new route opportunities within a structured, pre-arranged meetings format. It has become a 'must attend' event for aviation professionals in the region, from the Middle East to the Pacific, from Russia to Australia. We also plan to present to the participants, a taste of 'Incredible India' in association with AP Tourism." "As on date 33 airlines, 52 airport delegates and four tourism agencies from overseas have registered for participation," Mr.Viswanath added. The delegates can expect unlimited networking opportunities over the three days of the event including the formal and informal meetings, and there will also be a free route development conference and a CEO Forum on the opening day. The event will bring more than four hundred aviation industry experts to Hyderabad, India. Amongst the participants who have already registered are airports' delegates from Melbourne Airport, Shanghai Airport Group and Gold Coast Airport to name but a few; tourism authorities such as Tourism New Zealand and airlines such as Air Asia, AirAsia X, Cathay Pacific, Jet Airways and Kingfisher Airlines.
Jet Airways has been designated as the official carrier and is offering exciting, genuine discounts to all the participants. |
| |
| |
South African Airways for code share and baggage transfer agreement with an Indian carrier
10/02/09 Anish V Punnackattu/TravelBizMonitor
South African Airways has decided to enter into a code share agreement with a domestic carrier in India. However, the name of the carrier was not revealed. Recently Government of India (GoI) approved South African Airways to sign a code share with an Indian domestic carrier. As per the signing approval given by GoI, the airline is in process of discussion with domestic carriers. This information was divulged by Tauseef Khan, Acting Head- South East Asia, South African Airways during the road show organised recently in New Delhi in partnership with South African Tourism (SAT). With this agreement, the airline will be able to connect its passengers to five Indian cities such as New Delhi, Bangalore, Thiruvananthapuram, Chennai and Ahmedabad.
The airline also plans to have through baggage transfer partnership with the domestic airline with which it will forge a code share agreement. This will provide easy deliverance of baggage to passengers at the end destinations, irrespective of whether they fly by South African Airways or the other domestic airline. Besides, South African Airways is also planning to renew its existing special pro-rata or through fare partnership agreement with Indian carriers such as Indian, Kingfisher Airlines and Jet Airways for offering through fare. |
| |
|
|
|
