Cruising heights

www.cruisingheights.in

ONCE RESPECTED THE WORLD OVER, AIR INDIA’S MAHARAJA IS ALL BUT READY TO THROW IN THE TOWEL. AMIDSTREPORTS OF ITS DEMAND FOR MORE FUNDS, A LAST-DITCHEFFORT IS BEING MADE TO REVIVE THE AILING GIANT

CRUISING HEIGHTSAugust 2011 n ` 90

DOMESTIC CARRIERS MUST CORRECT COURSE TO WIPE OUT THE RED INK

Juhu refuses to take offEven with the green signal toexpand, Mumbai’s Juhu airportstill cannot accommodate traffic

Dreamlinershows its wingsBoeing’s 787 makes awhistlestop tour of India wowingthose invited to fly in it

Tough times forcargo carriersWhile multinationals TNT and FedExare expanding services, Indianstartups face financial obstacles

PLEASE, I WANTSOME MORE

cover final_ACI COVER.qxd 7/29/2011 3:37 PM Page 1

CRUISING HEIGHTS August 2011

EDITOR-IN-CHIEF’S NOTE

3

It is a reflection of thetimes that the DirectorGeneral of Civil Aviation’s

(DGCA) diktat that airlinesstop charging for seatallotment has come almost

completely uncontested. After mildly protesting,the affected airlines — IndiGo, SpiceJet, AirIndia Express and GoAir — have simplycomplied with the DGCA’s orders. The preferredseat charges are off and it’s now been taken offtheir websites, too.

At the end of the day, the preferred seatrevenue stream may be just ‘peanuts’ for all theairlines concerned, but that’s not the point. Thereal worry is that they simply don’t seem to havethe stomach to have a debate with the DGCA onwhat is clearly an order that can be challenged.

I sent an email to three different airlines.While one of them simply declined to evendiscuss the issue, the other two were willing totalk about it “off the record” or attributable to“industry sources”. Naturally, we declined. Ifthose who have got the wrong end of the stickaren’t willing to protest, then what’s the point? Inat least two of the cases, the airlines were clearthat they “didn’t want to get into a tangle with theregulator”.

What it shows is a deep fear of the DGCA!That if you stand up to question them on some oftheir orders, they could turn back and growl atyou. But surely that’s not the sort of image theDirector General would like to project. He is areasonable man who is fast-tracking the agendaset by his predecessor, Dr Nasim Zaidi, andactually adding a few important elements of hisown to the whole package. So why wouldn’t hetalk if you go and tell him what your perspectiveis?

Perhaps, one reason for the nervousness is thebattering most airlines have taken as part of thepilots’ scam. They have literally been taken to thecleaners for their procedures, winking andsupping with the DGCA in fuelling nepotism inthe air and, by and large, turning a blind eye tothe shenanigans of the Directorate. Granted,some of them needed to have their ears tweaked,but they should take heart in the fact that those

who were arrested by the police were scamster-pilots and officials of the DGCA and no one fromthe airlines.

From the perspective of the DGCA what arethey going to do about all the airlines that fly intoIndia and charge for seat allocation? You have AirAsia and BA to name just two that charge for thisoption. So, will we now have a situation wherethe DGCA has created an unequal playing fieldwith the foreign airlines continuing to makemerry on allocation and Indian carriers being

denied the same privilege? At best, the DGCAcould have stopped the across-the-board seat feethat airlines were charging as unreasonable. Butsurely, if I want a preference, I ought to pay for it.

What the DGCA, Mr Bharat Bhushan, issaying goes beyond that: you can’t charge for aspecial service. It’s like telling a theatre that theseats at the back of the hall can’t be higher-pricedthan the ones in the front. Or, will he accept asituation where there can be differential pricingfor seats in different parts of the aircraft? Theseare all points to ponder. The worry is that no oneis talking.

If the airlines get into a tizzy each time theyneed to talk to the regulator, it’s time for us to getworried. It only reflects a communication blockor a communication breakdown.

K Srinivasan

[email protected]

For heaven’s sake, talk!

CLAMOUR FOR THE PRICED SEATS: Why can’t airlinesapproach and talk with the DGCA?

Edit august.qxd 7/30/2011 2:43 PM Page 1

Is there a way out for the cash-strapped national carrier Air India? Alloptions seem to be drying up fast. Amidst rumours that the airline wouldbe privatised, the Dreamliner — which is being touted as the Maharaja’ssaviour — swooped in to wow a select few who had a ride in it.

contents


Off

the

cuf

f

COLUMN p32NEWS DIGEST p12Work on Juhu airport has long been kept on hold for unexplainedreasons. It’s high time that some-thing is done to relieve the pressureon Mumbai airport. Also: how theDGCA working out plans to phaseout foreign pilots and more?

TIME TO SAY GOODBYE! p36

Bomb-proof Welcome the Fly-Bag!A new bag designed by SheffieldUniversity’s Department of Civil andStructural Engineering in Britain aimsto replace the heavier, more expensive-hardened luggage containers that arecurrently used as a precaution againstthe threat of in-flight explosions. Theflexible, bomb-proof luggage holds foraircraft is undergoing tests by a teamof international researchers.Known as the Fly-Bag, it has multiplelayers of novel fabrics, composites andcoatings, and is designed to be filledwith passenger luggage and thenplaced in the hold of an aircraft.fundamental to the design of the bag isthe internal elastomeric coating andimpregnation of fabric with shearthickening fluids (STFs), according toDr Jim Warren. He said that STFswork by increasing their viscosity inresponse to impact. Under normalcircumstances, the particles in STFsrepel each other slightly.However, following sudden impact, theextra energy in the system provesstronger than the repulsive forces,causing the particles to clump togetherin structures called hydroclusters,which bump into each other,consequently thickening the fluid.“The real damage is caused byimpulse rather than the energy andthat’s a very important concept,”Warren said. What the researchers areactually interested in is taking thatimpulse and, “rather than have it allapplied to a structure over a very tinytime period, we want to take the sameamount of momentum and stretch itout over as long a time period as wecan so that the peak stress falls”.The group has built a full-scaleprototype that Warren said had beentested with an explosive device similarto the bomb that brought down PanAm Flight 103 over Lockerbie inScotland in 1988.The bag showed no sign of failing."We have to just keep putting bombs inbags and blowing them up untilsomething fails, and then we can saythis design is good up to this sort oflevel — which we’d only be able todiscuss with secured parties," Warrensaid.

4

Domestic airlines are notching up lossesdespite the boom in traffic. So, what’sthe solution? To add to that is the star-tling revelation that how shortage ofpilots, aircraft maintenance engineersand associated personnel could becomethe bane of the industry.

Content august 2011.qxd 7/29/2011 3:03 PM Page 2


Editor-in-ChiefK SRINIVASAN

Managing EditorTIRTHANKAR GHOSH

Group Consulting EditorR KRISHNAN

Consulting EditorNANDU MANJESHWAR

Deputy EditorPC SINGH

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Copy EditorASHOK KUMAR

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Senior Designer RUCHI SINHA

DesignNAGENDER DUBEY, MOHIT KANSAL,SHIVNATH

Picture EditorPRADEEP CHANDRA

Photo EditorHC TIWARI

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All information in CRUISING HEIGHTS is derived fromsources we consider reliable. It is passed on to our readerswithout any responsibility on our part. Opinions/viewsexpressed by third parties in abstract or in interviews are notnecessarily shared by us. Material appearing in themagazine cannot be reproduced in whole or in part(s)without prior permission. The publisher assumes noresponsibility for material lost or damaged in transit. Thepublisher reserves the right to refuse, withdraw or otherwisedeal with all advertisements without explanation. Alladvertisements must comply with the Indian AdvertisementsCode. The publisher will not be liable for any loss caused byany delay in publication, error or failure of advertisement toappear. Owned and published by K Srinivasan 4C Pocket-IV,Mayur Vihar Phase- I, Delhi-91 and printed by him at NutechPhotolithographers, B-240, Okhla Industrial Area,Phase- I, New Delhi-110020.

CRUISING HEIGHTS

AAI UPDATE p51Airports Authority of India is engineering develop-ments in the furthest corners of the country. Areport on the inauguration of the terminal atShillong and Bhopal. Also the first-ever AirportDirectors meet.

FOCUS ON CHOPPERS p45Welcome to the fascinating world of dynamic choppers and how the DGCA has come to the aid ofchopper pilots. Plus: an exclusive interview of AirVice Marshal (Retired), Arvind Walia, Sikorsky M Dfor South Asia.

Volume VI � No 4

contents

BACK PAGE p74Thomas Stuker is no ordinaryperson as he has notched upan enviable record of flyingthe most number of hours ona single airline over a periodof nearly three decades.

CARGO p58Surat Airport holds a great potential for the cargobusiness and stands tall against all odds. The feasibility of the airport has not been workedout yet despite Surat being the business hub ofIndia with its diamond and textile businesses toboast about.

GLOBETROTTING p34Heard of a baby ban by an air-line; or for that matter, a manrun over by an aircraft whilesleeping on the runway. Strangeand often funny stories aboutairlines from around the world.

SNIPPETS p68Read the latest buzz and hap-penings in the aviation sectorfrom national to internationalin this section. Indigo launch-es “Get Packing” while JetAirways ties-up with Ngpay.

ARTICLES NEWS VIEWS EDITS INTERVIEWS CLIPPINGS

PROFILES NEWS DIGEST

Cover Design: Ruchi Sinha

H C

Tiw

ari

Content august 2011.qxd 7/29/2011 3:03 PM Page 4

8

PERISCOPE

The cover story An IndianSummer in Paris (July, 2011)made a pleasant reading. Itwas heartening to read in thestory that India was the showstealer at the air show. Indigoand GoAir created a frenzy oforders along with AirAsia.Besides that, the air show alsoshowcased some of the finest

display of civilian as well as military aircrafts. The2011 edition of the show saw the startling numbers of2,100 international exhibitors in 28 internationalpavilions. The show also showcased 150 aircraft,including the solar airplane Solar Impulse. All in all,the air show lived up to its expectations.

Kamal Singh, Patna

The AGM of IATA ended on a strong note with thechange of guard as illustrated in the story A new IATAwithout Basta (July, 2011). Like always, security andsafety remained the two hot topics at this year’s AGMalso with IATA’s unveiling of security checkpoint ofthe future. Also, Tony Tyler took over the reins atIATA from outgoing Director General GiovanniBisignani while Jet Airways Chairman Naresh Goyalwas re-elected to the prestigious Board of Governorsof the International Air Transport Association (IATA).The highpoint of meeting remained the bringing outof the future challenges which Bisignani cited.

Rahul Dey, Shillong

The cargo story Troubled times for Deccan 360(July, 2011) unveiled sorry state-of-affairs of theDeccan 360 and the gruelling time it is goingthrough. As a matter of fact, the cargo airline isgoing through very difficult times. Capt Gopinathstarted the cargo airline last year in an attempt to tapthe growing domestic cargo market but has not beenable to penetrate the market as was expected. It wasstarted as a next big thing but has not been able toreap the benefits. The cargo carrier has surely got lotof job up its sleeve.

Kalyani Mazumdar, New Delhi

All correspondence may be addressed to

Editor, Cruising Heights, D-11 Basement, Nizamuddin (East),

New Delhi -13, OR mail to [email protected].

LETTERS TO EDITOR


Right on target “Boeing will deliver first Dreamliner to

Air India in quarter four of this calen-

dar year.”

DDIINNEESSHH AA KKEESSKKAARR, Boeing India President onthe delivery of the Dreamliner to Air India.

Security falling-out “The idea that terrorists have been

looking for other ways to circumvent

security measures in order to target

aircraft is not at all surprising.”

JJAAYY CCAARRNNEEYY,, White House Press Secretary on the aviation security threat being posed byterrorists.

Ushering development“The modernisation of non-metro

airports is happening. There were

some issues in modernisation of

Chennai airport because of (prob-

lems in) land acquisition. The work

will start soon as it (this hurdle)

is cleared.”

VVAAYYAALLAARR RRAAVVII,, Civil Aviation Minister onthe modernisation of non-metro airports.

A tight deadline

“Airbus has an order backlog of

more than 400 planes to be delivered

to Indian carriers over the next

15 years.”

JJOOOOSSTT VVAANN DDEERR HHEEIIJJDDEENN, Airbus’ Head ofAirline Marketing for Africa, India, South- EastAsia and Japan on the backlog of orders to be delivered to Indian carriers.

Right path “If the pilot project of online exams

for ATPL goes on well, DGCA would

hold online exams for issuance of

Commercial Pilot License (CPL) as

well. Pilots require a CPL to join an

airline as a co-pilot.”

EE KK BBHHAARRAATT BBHHUUSSHHAANN,, DGCA Chief E KBharat Bhushan on the issuance of Commercial Pilot Licence (CPL) inthe future.

Options galore “In the competitive environment, cus-

tomers have many options to choose

from. It is this demand in the market

that has led various airlines to offer

packages for an overall holiday

experience.”

OORRHHAANN AABBBBAASS,, Vice-President (India and Nepal), Emirates on the various options available to the customers.

“www.cruisingheights.inJuly 2011 � ` 90

INDIAN SUMMER� GOAIR’S JEH WADIA � INDIGO’S RAHUL BHATIA � AIRASIA’S TONY FERNANDES

INDIAN CARRIERS, WITH A MASSIVE DOSE OF HELP FROM MALAYSIA CREATE, A “FRENZY” AT THE PARIS AIR SHOW BY ORDERING A WHOPPING 452 PLANES — ALL FROM AIRBUS.

IT IS TIME AERA NOTICED THE EXISTENCE OF AIR CARGO

Periscope May 2011.qxd 7/29/2011 3:11 PM Page 2

9

Ryanair: Greenest among all According to new analysis by carbon accounting firm Brighter Planet,

Low-cost air carrier Ryanair is the world’s most carbon-efficient airline.

The other top 10 airlines were Cathay Pacific, EasyJet, Continental

Airlines, United Airlines, JetBlue Airways, KLM Royal Dutch, American

Airlines, Delta Air Lines, Alaska Airlines and US Airways.

KKeeyy ffiinnddiinnggss wweerree::

� Airline efficiency varies dramatically due to aircraft, routes, and pay-

loads:Internationally, Ryanair, Singapore Airlines, and Delta claimed

top rankings for efficiency among the 20 largest airlines, with SAS

rated the worst.

� Carbon efficiency per passenger per mile varies tenfold across

the industry: This revelation runs counter to standard carbon

accounting practices that treat flight efficiency as relatively uni-

form and lead to major inaccuracies and lost opportunities.

� Focusing on efficiency provides new opportunities for cutting

carbon footprints: An analysis of more than 300,000 employee

flights at two of the largest American corporations disclosed

that these companies could cut their travellers’ carbon foot-

prints by as much as 40 per cent simply by choosing more

efficient flights

� Five key drivers account for the wide disparity in flight efficien-

cy: Aircraft fuel economy; passenger load factor; seat density;

freight share and distance are critical factors for accurate flight

carbon measurement and management.

� Market trends in the aviation industry are driving evolutions in

flight efficiency: Air travel efficiency has increased 20 per cent

since 2000, an improvement that in the US has saved airlines

and travellers more than $33 billion on fuel and prevented the

release of 670 billion pounds of CO2e.

CO

LD S

TATS


Towards indigenisation “The Committee has come to a conclusion

that the Regional Transport Aircraft (RTA)

should be a narrow-body turbo fan aircraft

with a seating capacity for 70-90 persons

and stretchable to 80-100 persons.”

SSAAMMIIRR BBRRAAHHMMAACCHHAARRII,, CSIR Director General onwhat the first indigenously-developed Regional Transport Aircraft (RTA) would be.

Going upwards

“Though air traffic is growing from small

towns at a decent pace, it will be a diffi-

cult proposition for airlines lacking the

right aircraft to fly to the smaller airports.”

AANNKKUURR BBHHAATTIIAA,, Executive Director, Bird Group onthe growing proposition of air traffic in India.

”

Hey, that seat is

mine... I paid a whole

lot of money for it...!

LOOKING GLASS


9

Ryanair: Greenest among all According to new analysis by carbon accounting firm Brighter Planet,

Low-cost air carrier Ryanair is the world’s most carbon-efficient airline.

The other top 10 airlines were Cathay Pacific, EasyJet, Continental

Airlines, United Airlines, JetBlue Airways, KLM Royal Dutch, American

Airlines, Delta Air Lines, Alaska Airlines and US Airways.

KKeeyy ffiinnddiinnggss wweerree::

� Airline efficiency varies dramatically due to aircraft, routes, and pay-

loads:Internationally, Ryanair, Singapore Airlines, and Delta claimed

top rankings for efficiency among the 20 largest airlines, with SAS

rated the worst.

� Carbon efficiency per passenger per mile varies tenfold across

the industry: This revelation runs counter to standard carbon

accounting practices that treat flight efficiency as relatively uni-

form and lead to major inaccuracies and lost opportunities.

� Focusing on efficiency provides new opportunities for cutting

carbon footprints: An analysis of more than 300,000 employee

flights at two of the largest American corporations disclosed

that these companies could cut their travellers’ carbon foot-

prints by as much as 40 per cent simply by choosing more

efficient flights

� Five key drivers account for the wide disparity in flight efficien-

cy: Aircraft fuel economy; passenger load factor; seat density;

freight share and distance are critical factors for accurate flight

carbon measurement and management.

� Market trends in the aviation industry are driving evolutions in

flight efficiency: Air travel efficiency has increased 20 per cent

since 2000, an improvement that in the US has saved airlines

and travellers more than $33 billion on fuel and prevented the

release of 670 billion pounds of CO2e.

CO

LD S

TATS


Towards indigenisation “The Committee has come to a conclusion

that the Regional Transport Aircraft (RTA)

should be a narrow-body turbo fan aircraft

with a seating capacity for 70-90 persons

and stretchable to 80-100 persons.”

SSAAMMIIRR BBRRAAHHMMAACCHHAARRII,, CSIR Director General onwhat the first indigenously-developed Regional Transport Aircraft (RTA) would be.

Going upwards

“Though air traffic is growing from small

towns at a decent pace, it will be a diffi-

cult proposition for airlines lacking the

right aircraft to fly to the smaller airports.”

AANNKKUURR BBHHAATTIIAA,, Executive Director, Bird Group onthe growing proposition of air traffic in India.

”

Hey, that seat is

mine... I paid a whole

lot of money for it...!

LOOKING GLASS



The steady growth in the numbers offlyers was not seem to be slowingdown. For though in the last twomonths, the capacity has been

increasing in comparison to demand,according to the latest data released by theDirector General of Civil Aviation, thenumber of passengers carried by domesticairlines during January-June 2011 (halfyearly) was 298.1 lakh against 253.33 lakh

during the corresponding period of previousyear thereby registering a growth of + 17.7per cent. � The top domestic carrier that held a

market share of 19.8 per cent wasKingfisher. However, if Jet Airways(17.8 per cent) and JetLite (7.7 per cent)are taken together, the market share heldby Jet was 25.5 per cent. IndiGo held19.6 per cent, Air India 14.9 per cent,

SpiceJet 14.0 per cent, and GoAir 6.1per cent.

� The month of June 2011 witnessed adecrease in seat factor as compared tothe previous month primarily due to theend of the peak season and the onset ofthe monsoon. Air India's seat factor was73 per cent, Jet's 78 per cent, JetLite's83.3 per cent, Kingfisher was 86.5 percent, SpiceJet was 79 per cent, GoAir

100

200

150

50

0

250

300

350Growth - YoY(+17.7%)

- MoM(+17.9%)2010 2011

YoY

253.33

298.1

45.0453.12

MoM

GoAir6.1%

SpiceJet14.0%

Air India (Dom)14.9%

IndiGo19.9%

Jet Airways17.8%

JetLite7.7%

Kingfisher19.8%

May. 11 Jun. 11

10

40

30

20

0

-10

-20

-30

-40

Apr May JunJul Aug Sep Oct Nov

Year-over-Year

% c

hang

e ov

er M

onth

Dec Jan Feb Mar

Capacity (ASKM) Demand (RPKM)

100

80

0Air India

7378.1 7879.8 83.384.3 86.588.4

7982.7

80.187 79.4 87.4

Jet AirwaysJetLite Kingfisher

SpiceJet GoAir IndiGo

20

60

40

Passengers carried by domestic airlines during Jan-Jun 2011 (half yearly) were298.1 lakh as against 253.33 lakh during the corresponding period of previousyear thereby registering a growth of + 17.7%.

�

�

��

�

�

�

TRAFFIC DATA

Seat

Fac

tor (

%)

Slow and steady�� Capacity vs Demand

�� Passengers carried by scheduled domestic airlines

�� Market share of scheduled domestic airlines

�� Seat factor of scheduled domestic airlinesThe month of June 2011 witnessed decrease in seat factor as compared toprevious month primarily due to end peak season and onset on monsoon.

Traffic Data new.qxd 7/29/2011 2:23 PM Page 2

CRUISING HEIGHTS August 2011 11

Excessiv e (> 44 Min7.9%

Very Late (30-44 min)5.7%

On-Time74.4%

Late (15-29 min)12.3%

74.1% (Departures)

Late (15-29 min)17.1%

On-Time68.8%

6.8% (Arrivals)

Very Late (30-44 min)6.8%

Excessiv e (> 44 Min7.7%

was 80.1 per cent and IndiGo was 87.3per cent.

� According to the data, passengercomplaints of scheduled domesticairlines in June 2011 had gone downslightly. The total number of complaintswas 1189, compared to 1194 in May2011. The approximate number ofpassenger-related complaints was 2.2per 10,000 passengers carried. JetLite

had 1.6 complaints per 10,000passengers while IndiGo had 1.7, AirIndia had 1.8, Kingfisher had 1.9,SpiceJet had 2.4, GoAir had 3 and JetAirways had 3.51.

� The overall on-time performance ofairlines in June 2011 was 85 per cent. Jetled the carriers in on-time performancewith 91.4 per cent, IndiGo was at 90.2per cent, Kingfisher was at 89.1 per

cent, JetLite at 88.6 per cent, GoAir wasat 87.5 per cent, SpiceJet was 75.9 percent and Air India at 71.7 per cent.

� Meanwhile, of the 70 foreign carriersoperating to/from India, the data of 52carriers were received by the DirectorGeneral of Civil Aviation. The on-timeperformance for June 2011 was 74.1 percent (Departures) and 68.4 per cent(Arrivals).

GoAir

Air India (Dom)

JetLite

Jet Airways

SpiceJet

Indi Go

Kingfisher

0

0

0.6

1.1

1.3

2.9

1.7

18

0 0.5 1 1.5 2 2.5

Cancellation Rate (%)

3 3.5

JetLite

GoAir

Air India (Dom)

IndiGo

SpiceJet

Kingfisher

Jet Airways

0 0.5 1 1.5 2 2.5 3 3.5 4

No.of Complaints/10,000 Pax

1.6

1.7

1.8

1.9

2.4

3

3.5

Technical47.0%

Con sec/Misc25.5%

Commercial16.6

Wheather4.6%

Operationl 6.7%

% of Total Ops OTP

Scheduled Domestic Airlines, Overall OTP (June 2011)- 85%

20

40

80

60

100

0

Jet Airways KingfisherIndiGo Go AirJetLite AI (Dom)SpiceJet

On-Time Performance (%)

21.715.3

22.5

6.6 4.711.3

18

88.6

71.175.9

87.5

�

�

�

�

�

��

�

90.291.4 89.1

�� Reasons of cancellations �� On-time performance (OTP)

�� Passenger complaints of scheduled domestic airlines

�� Cancellation data of scheduled domestic airlines

�� On-Time Performance Foreign Carriers

Overall Cancellation Rate in Jun 2011 – 1.1% Total number of complaints (June 2011) – 1189 • Number of passengerrelated complaints – 2.2 per 10,000 passengers carried.

70 foreign carriers operating to/from India. At the time of compilation ofthis report, OTP data of 52 carriers was received.

�� On-Time Performance Foreign Carriers

Traffic Data new.qxd 7/29/2011 2:23 PM Page 3


NEWS DIGEST

Euro Hawk after 22h journeyEurope moved a step closer to fielding its first

operational high-altitude, long-endurance

unmanned air vehicle when the first Northrop

Grumman/Cassidian Air Systems Euro Hawk

touched down in Germany. Developed from

Northrop’s RQ-4 Global Hawk by joint venture

company EuroHawk for the signals intelligence role,

the new aircraft will replace the German air force’s

manned Dassault/Breguet Atlantic aircraft, the last

of which was retired in 2010. The Euro Hawk

demonstrator landed at Munich following a more

than 22 hour transatlantic journey, which had

started at Edwards Air Force Base in California.

Tony tattlesThe Jakarta Globe on the irrepressible boss of Air Asia:‘Tony Fernandes likes to be the life of the party — and hethrew a big party in Tokyo to celebrate a new alliancebetween his AirAsia and the ANA Group, Japan’s largestairline. “At first, I think they got terrified by my culture,my style,” Fernandes said of his new partners in aninterview with the Jakarta Globe shortly before heannounced the deal. “They thought it would be a disaster.My personality is probably 3,000 per cent different thanthe Japanese.”

Fernandes said the deal was initiated by ANA threeyears ago. “The delay was because we told them the onlyway to run it was if we run it. Of course, for an airlinesuch as theirs this was hard to swallow,” he said. Butswallow it they did. The new AirAsia Japan will fly thecompany’s signature red colour and will follow theAirAsia model. He said the two sides kept trying to makeit work despite their differences and a tough regulatoryenvironment in Japan that has just recently allowedbudget carriers to operate. He said that he convinced ANAthey should do what they do best — run a full-serviceairline — and leave the no-frills operation to AirAsia.

For now, however, Fernandes, 48, divorced and with areputation for liking the ladies and a stiff drink, is movingto Jakarta, where he has purchased an apartment to benear what will be the company’s new regional corporateheadquarters at the Equity Building in South Jakarta. Heis not forsaking his native Malaysia, he says, noting thatAirAsia is now a regional airline. “We are not identifiedwith Malaysia,” he said.

Touche!

BAA losesStanstedAirport operator BAAmust sell StanstedAirport and eitherGlasgow orEdinburgh airport, theCompetitionCommission hasconfirmed. BAA’schief executive ColinMatthews said he was“dismayed” by thedecision, claiming itwould damage thecompany -- whichwas investing in UKjobs. Spanish-ownedBAA runs six UKairports includingHeathrow and hasbeen the subject of aCompetitionCommissioninvestigation since2007.

MalaysiaAirlineschairmanquitsLOSS-MAKING MALAYSIA

AIRLINES ANNOUNCED

THAT ITS CHAIRMAN

MOHAMED MUNIR ABDUL

MAJID WILL LEAVE THE

FLAG CARRIER AS IT

RESTRUCTURES ITS TOP

TEAM IN AN EFFORT TO

RETURN TO PROFIT. IN A

STATEMENT, THE AIRLINE

SAID MUNIR WILL LEAVE

HIS POST ON JULY 31

WHEN HIS CONTRACT

EXPIRES BUT DID NOT

PROVIDE REASONS. HE

JOINED THE BOARD IN

AUGUST 2004.

Air France launches LCCAir France is offering lower-cost regional services to help itregain market-share from its low-cost rivals. By basing crewat provincial airports, the carrier hopes to cut costs and grabmore market share. The carrier will debut the new regionalservices from Marseilles this October. It will roll out similarnew services from Bordeaux, Nice and Toulouse in springnext year, launching 54 new routes in total to Europeancities and the Mediterranean. Under the initiative, Air Franceaims to reduce operating costs by 15 per cent and increasecapacity in the regions by more than 30 per cent. The carrierbelieves it can cut costs on the services through a variety ofchanges including increasing aircraft productivity from 8h15min per day to 11h 40min. Reduced turnarounds of 5minat stations will also contribute to a total productivity gain ofaround 40 per cent.

Small digest august.qxd 7/29/2011 12:53 PM Page 2


BBeeiijjiinngg’’ssnneeww aaiirrppoorrtt aapppprroovveedd::Airlines to be splitby alliance

BEIJING’S NEW AIRPORT

WILL BE ON THE OTHER SIDE

OF THE MEGALOPOLIS FROM

THE CURRENT CAPITAL

AIRPORT, ALTHOUGH

DETAILS OF HOW THEY WILL

BE LINKED HAVE NOT YET

EMERGED. BEIJING’S NEW

AIRPORT HAS BEEN GIVEN

THE GO-AHEAD FOR

CONSTRUCTION TO BEGIN,

WITH A REPORTED EIGHT

RUNWAYS (A FURTHER

NINTH RUNWAY WILL BE FOR

MILITARY AND OFFICIAL

USE), 55 SQUARE

KILOMETRES OF SPACE AND

CAPACITY TO TAKE AN

ASTOUNDING 400 MILLION

PASSENGERS A YEAR. THE

AIRPORT WILL BE NEARLY 50

KM TO THE SOUTH OF

BEIJING, AND WILL COVER

TWO TOWNS IN THE DAXING

AREA OF THE BEIJING CITY

MUNICIPALITY.

ACCORDING TO THE HEAD OF

THE CHINA CIVIL AIRPORT

ASSOCIATION, QUOTED IN

CHINA’S OFFICIAL ENGLISH

LANGUAGE NEWSPAPER

CHINA DAILY, FLIGHTS WILL

BE SPLIT BETWEEN THE NEW

“BEIJING SOUTH” AIRPORT

AND THE CURRENT BEIJING

CAPITAL AIRPORT

ACCORDING TO AIRLINE

ALLIANCE. BEIJING CAPITAL

IS RUNNING TO CAPACITY.

AUTHORITIES HAVE SAID IT IS

NOW IMPOSSIBLE TO ADD

EVEN ONE MORE FLIGHT TO

THE TIGHT DAILY SCHEDULE

OF THE CAPITAL AIRPORT.

THE CURRENT CAPITAL

AIRPORT TAKES AN ALREADY-

IMPRESSIVE 74 MILLION

PASSENGERS ACROSS

NEARLY 500,000 FLIGHTS A

YEAR, BUT HAS ONLY THREE

RUNWAYS.

Airport bodyscanners todrop nakedimagesNew software for screeningpassengers at US airports willdo away with naked images,addressing a major publicconcern, the USTransportation SecurityAdministration (TSA)announced. After complaintsfrom travellers, the TSAearlier this year began testing,at four airports, software forthe full-body scanners thatinstead uses a generic bodyoutline and highlights thearea where any anomaly isdetected.

World’slargest-everorderAmerican Airlines hasannounced an order for 460narrow-body airplanes (+465options). The order is thelargest in aviation history,dwarfing recent orders for 180A320 family aircraft forIndiGo, and 200 A320neos forAir Asia. Deliveries arescheduled to begin in 2013 andproceed till 2022. The order issplit between Airbus andBoeing; with Airbus getting alarger share of the orders thanBoeing (260 vs. 200).American now flies all Boeingjets, making the order a hit forthe US airplane- maker,particularly given that theairline opted for more Airbusaircraft.

Cutting ‘em tosize !“The tax cuts I’m proposing— we will get rid of are taxbreaks for millionaires andbillionaires, tax breaks for oilcompanies and hedge fundmanagers and corporate jetowners. You’ll still be able toride on your corporate jet.You’re just going to have topay a little more,” Obama said.

Close-up views of the oneand one-half inch silicondisk, which will be left onthe moon by the Apollo 11astronauts. The disk bearsmessages of goodwill fromheads of state of manynations. The process used to

make this wafer is the same as that used to manufactureintegrated circuits for electronic equipment. It involves makingtiny photographic images and depositing metal on the images.The Kennedy half-dollar illustrates the relative size of thememorial disk.

Memories of Apollo 11

Flying Car dreams become a reality

For more than a decade,American aerospaceengineer Burt Rutandreamed of building aflying car. Now, thecompany he founded hasbuilt a prototype of hisdream.The company,

Scaled Composites, has developed a hybrid gasoline-electric roadable aircraft as part of an internal researchand development program.The Model 367 or BIPOD,was Rutan’s final design before his retirement in Aprilafter a distinguished career. During initial conceptualdesign studies, Scaled Composites found that many oftheir propulsion system characteristics were “wellaligned with the drivetrain needs of a roadablevehicle” and expanded the research programme toinclude a “flying car” airframe, the company said in astatement announcing the new vehicle.

easyJet breathes easyEASYJET DELIVERED A RIPOSTE TO SIR STELIOSHAJI-IOANNOU’S RELENTLESS CRITICISM OF ITSFINANCIAL PERFORMANCE BY PREDICTING ITWOULD GENERATE HIGHER-THAN-EXPECTEDPROFITS THIS YEAR. GOOD NEWS HAS BEEN ARARE COMMODITY AT EASYJET IN RECENT YEARSFOLLOWING THE ERUPTION OF HOSTILITIES OVERTHE CARRIER’S EXPANSION PLANS BETWEEN THEAIRLINE’S BOARD AND HAJI-IOANNOU, ITSLARGEST INVESTOR, WHOSE FAMILY HAS 38 PERCENT OF THE SHARES. SHARES IN THE BUDGETCARRIER JUMPED BY 17 PER CENT AS IT BEATANALYSTS’ EXPECTATIONS, THANKS TO RISINGDEMAND FROM BUSINESS PASSENGERS AND ARISE IN ADD-ON FEES.

Small digest august.qxd 7/29/2011 12:53 PM Page 3

India Aviation-2012, the thirdinternational exhibition andconference on civil aviation, will be,

held at Begumpet Airport, Hyderabad,from March 14 to 18, 2012. Announcingthe meet recently, Dr Nasim Zaidi,Secretary, Ministry of Civil Aviation,said that the civil aviation sector hadregistered phenomenal growth in Indiain past decade. Passenger traffic hadgrown at 18 per cent year-on-year basisand the year 2010 closed at 90 millionpassengers both domesticand international. Thecountry is the fastest-growing aviation marketand expected to be withinfour- five big aviationmarkets by 2020 and thirdin terms of domesticmarket after US andChina.

During the last twodecades from a fleet ofonly about 100, scheduledoperators today have 435aircraft connecting thenation and the world.Considering the geographic position ofIndia, it had the potential to become anaviation hub at the crossroads betweenEurope/ Middle East and Asia Pacific.Dr Zaidi informed that T-3 Terminal atDelhi International Airport was evolvinginto a hub. About 11,000 passengerswere transiting from various spokes to

different destinations in the world byutilising the spoke and hub system.

India Aviation-2012 is beingorganised by the Ministry of CivilAviation jointly with the Federation ofIndian Chambers of Commerce &Industry (FICCI). It would witnessparticipation of over 250 exhibitorscomprising aircraft manufacturers,aircraft machinery and equipmentcompanies, aircraft interiors, airlinesservices and air cargo, skill

development, airport andinfrastructure, MROs, etc.The exhibition will bespread over an area of20,000 square metres. TheUK is the partner countryfor the 2012 event withFrance as the focuscountry and USA as theguest country. While thehost is the state of AndhraPradesh, the OverseasAssociate for the show isFamborough InternationalLtd.

Apart from theExhibition, India Aviation-2012 willhave a conference on policy issues andbusiness aspects of the civil aviationsector, a CEOs Forum representing chiefexecutives of leading aviationcompanies, Chalets, Static Display,Demonstration Flights and MediaConferences.

14

NEWS DIGEST

Few bids for Air India’s fleetcoverThe largest aviation cover in India, forAir India’s fleet, estimated at $9billion (`40,500 crore), has attractedonly two bidders — from ICICILombard and a consortium of NewIndia along with three other publicsector insurers.

Air India’s insurance policy is ahull, spares and liability policy, whichcovers the aircraft value, passengers’liabilities and suites in the case of anaccident, fire, flood or naturalcalamity. Brokers and insurers saystrict norms, including upfrontpayment in case of claims and lowmargins, as it is largely reinsurance-driven, have led to such lowparticipation. In 2010-11, ICICILombard bagged the cover with apremium of $30 million (`135 crore).Air India’s fleet is valued atapproximately $9 billion. The bidsinvited are for 2011-12.

In the earlier years, companiessuch as Reliance & IFFCO Tokio hadparticipated in the Air India aviationcover tenders, but they have decided torefrain. It is learnt that ICICI Lombardis likely to use its current brokerIndependent/JLT combination whereasthe New India consortium is yet totake a decision as it is discussing thebroker options internally.

Cooch Behar gets going againA Northeast Shuttle flight left forKolkata from Cooch Behar as WestBengal CM Mamata Banerjee “flaggedoff” the service — that resumed after 18years — via a video conference.

Mamata, who could see the CoochBehar airport on a screen set up atKanchenjungha Stadium in Siliguri,waved a flag, which was thenconveyed to the AAI officials at CoochBehar. The airport, too, had installed ascreen for the video conference but alast-minute snag spoilt the show. Thelast commercial flight to and fromCooch Behar had landed and taken off

��INFRASTRUCTURE NEWS ¨̈̈̈

STAGE SET FOR

INDIAAVIATION

2012


SHOWCASING AVIATION GROWTH: (L-R) V P Agrawal, Chairman, Airports Authority of India (secondfrom left), Dr Dinesh Keskar, Chairman of the FICCI Aviation Committee and Boeing India President,Dr Nasim Zaidi, Secretary, Civil Aviation, Dr Rajiv Kumar, Secretary, FICCI and Jane Sanders, DeputyHead of Trade, British High Commission at the launch of India Aviation 2012

H.C

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iwari

Cooch Behar Airport

kau

sh

ikb

isw

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rg

News digest august part 1.qxd 7/29/2011 3:17 PM Page 18

Kalanithi Maran, who owns a 38.16per cent stake in SpiceJet, haspledged 134.8 million shares, or

87.17 per cent of his total holding in theairline. Maran, who owns the South-based Sun TV network, together withKAL Airways holds 156.5 million sharesin the airline. Maran had, in April thisyear, pledged 14.84 per cent stake inSpiceJet and has subsequently pledgedmore shares to raise funds for the airline.SpiceJet, which has a share of a little over14 per cent in the domestic market for airtravel, has been looking at expandingservices to Tier II cities and launch ofregional operations from 15 July. Theairline, however, had to postpone theplans due to funding problems. A rightsissue can be one option the companymight consider. Merchant banker Enamhas been appointed to suggest options andmethods of getting capital into the airline.It is expected that the airline wants toraise `400 crore through offering ofshares. The carrier hopes to conclude theprocess by the end-December.


NEWS DIGEST

in 1993 when the now defunctVayudoot, a subsidiary of IndianAirlines, used to operate servicesbetween the two stations.

Three earlier attempts had beenmade to put Cooch Behar on the airmap since Vayudoot stopped servicesin 1990. The late West BengalTransport Minister SubhashChakraborty tried to connect aregional airline (Bengal Air) thatwould connect the town but the carriernever took off. In 2005, Capt Gopinathagreed to operate Deccan Airlines andeven did a test flight. But after VijayMallya took over the carrier, CoochBehar was dropped from the plan.Gopinath then returned with DeccanCharters but the company that ownedthe plane disappeared with the aircraftbefore the Cooch Behar flight could belaunched.

This time, though, the stategovernment as well as AAI is hopefulthat the jinx will finally be broken.Apart from Cooch Behar, NortheastShuttle is also in talks with Tata Steelfor operations between Kolkata andJamshedpur along a similararrangement of under-writing half theseats. Deccan Charters was operatingtwo-three daily flights to the steel townbefore the aircraft owner terminated thelease and withdrew the plane.

Proposal for airport at NagarHaveli submittedA proposal has been submitted to theCivil Aviation Ministry by the Dadraand Nagar Haveli (UT) administrationseeking setting up of an airport at Luharivillage in Nagar Haveli, which islocated along the proposed Ahmedabad-Mumbai Express Highway.

The idea is to decongest air trafficfrom the nearest domestic airports ofMumbai by developing an airport towhich passengers from the cities ofMaharashtra, Madhya Pradesh andGujarat had an easy accessibility.

The Planning Commission willalso accept the request for allocationof funds for the airport project if it iscleared by the ministry concerned. Asitemap for the proposed airport isbeing prepared with the help of IndianCoast Guard. About 186 hectares ofbarren land at Luhari village has beenfound suitable for the proposed airport,which is just 125 km away fromMumbai airport.

INFRASTRUCTURE NEWS ¨̈̈̈

��

DUBAI SOARS TO A RECORD

MARANPLEDGES HISSPICEJETSTAKE

Dubai International Airporthandled an average of 135,700passengers each day as the

Emirate’s aviation engine poweredahead in the first half of the year. Arecord 24.6 million passengers passedthrough the world’s fourth-busiestairport for international passengertraffic during the period, compared with22.6 million in the same period lastyear, as the airport’s biggest customers,Emirates Airline and flydubai, addedflights, routes and aircraft.

The increase of 8.8 per cent keepsDubai International on track to becomethe world’s busiest international air hub

within four years. A $7.8 billion(Dh28.64bn) expansion of DubaiInternational is planned to continuedriving growth over this decade. Morethan 200 new weekly flights werelaunched to 19 new destinations acrossAsia, Europe and Africa by airlines overthe period. Dubai International servesmore than 130 airlines flying to morethan 220 destinations on six continents.The airport’s figures for last month reveala 10.4 per cent rise from the same periodlast year, to 4.07 million passengers. Theairport operator said India, the UK, SaudiArabia, Pakistan and Iran provided themost inbound flights.

ENGINEERING GROWTH: Inside view of Dubai International Airport.

News digest august part 1.qxd 7/29/2011 3:17 PM Page 20

The Company

Fraport AG is a leading player in the global airport industry. Following its initial public offering (IPO) Fraport has become the second largest listed airport company in the world, by revenues.

Fraport’s expertise is based on more than 80 years of aviation history at Frankfurt am Main, Germany. Frankfurt Airport (airport code = FRA) is located about 12 kilometers from downtown Frankfurt. A renowned pioneer for decades, FRA serves as Fraport’s home base and as a showcase for the com-pany’s know-how, technology, products, and services. With outstanding connectivity to all fi ve continents of the globe, FRA is a intermodal hub with one of the largest catchment areas in the world and direct access to the German high-speed railway network. FRA is strategi-cally situated in the heart of Germany and the European Union. Airlines can profi t from high utilization rates and traffi c yields.

Range of services

The company prides itself in being a lead-ing-edge provider of integrated airport services. Besides managing FRA, Fraport AG and its subsidiaries provide the full range of planning, design, operational,

commercial and management services for airports around the world. Fraport AG serves as a neutral partner to the world’s major airlines: offering a complete pack-age of aircraft, cargo, passenger and other ground handling services. Outside Ger-many, the company has ground services operations in Austria. Other areas of Fra-port expertise include cargo and ground handling, real estate development, airport retailing, IT services, consulting, inter-modal concepts, environmental manage-ment, hub management, training, etc.

Fraport worldwide

Through investments, joint ventures and management contracts, Fraport is now active on 4 continents. Fraport served some 73.7 million passengers in 2009 and handled 2.1 million metric tons of cargo (airfreight and airmail) at the Group’s airports.

Fraport, which bids for airport manage-ment projects worldwide, was awarded a 30-year concession for operating, manag-ing and developing Indira Gandhi Inter-national Airport (IGIA) in India. Together with state-run Airports Authority of India (AAI) Fraport AG has formed “Delhi Inter-national Airport Private Limited (DIAL)”. Fraport is the nominated “Airport Opera-tor” and an Airport Operator Agreement

concluded with DIAL – under which it will be utilizing its extensive airport expertise developed over the past 80 years to assist with the operation, management and development of IGIA.

Fraport AGFrankfurt Airport Services Worldwide60547 Frankfurt am Main, GermanyE-mail: [email protected] Internet: www.fraport.com www.frankfurt-airport.com

Contact:

Ansgar SickertVijender SharmaFraport IndiaPaharpur Business CentreSuite 30221, Nehru PlaceNew Delhi – 110 019, IndiaPhone: +91 11 4120 7355 (AS) +91 11 4120 7334 (VS)Fax: +91 11 4120 7558 Mobile: +91 99 1038 2806E-mail: [email protected] [email protected]

Fraport – Airport Operations from Austria to Xi’an.

Anote detailing the formation of anautonomous Civil AviationAuthority (CAA) is being

finalized. It will ultimately replace thepresent regulatory body, the DGCA.Making an announcement to this effect,the Director General of DGCA, E KBharat Bhushan observed similar set upsexist in many foreign countries. The CAAwill regulate all aviationsafety issues. It will haveadministrative and financialautonomy and will keep atab on the entire range ofactivities - from properprovision of Air TrafficServices and licensing tofinancial fitness of airlines.

A legislation to put inplace the CAA will beintroduced by the government.According to Bharat Bhushan, the CAAwill have a lot of financial,administrative and proceduralindependence. This means that the CAAwill be able to recruit professionalsdirectly without going through the UPSCroute and also have the financial powersto spend without going throughbureaucratic red tape. The CAA will alsohave powers to monitor ticket prices andrule on consumer grievances. In thisconnection it has been stated that it will

be empowered to appoint an ombudsmanto address consumer grievances.

The most crucial aspect of the CAAwill be the separation of the accidentinvestigation wing and the regulatoryfunctions of the Authority so that there isno internal clash within the proposedbody. The DGCA, for instance, doessafety audits, grants licences and

investigates aircraft crashes.It is proposed to arm theCAA with more powers toaddress consumer affairs aslack of such powers with theincumbent DGCA had oftenemboldened the airlines tocharge sky-high fares. In linewith this thinking, theproposed CAA will also have

powers to appoint regionalombudsmen to ensure speedier action andsettlement of customer or passengerdisputes.

The note, which has been prepared byDGCA and submitted to the parentMinistry of Civil Aviation, has beenbased on a feasibility study first made inOctober 2009 in technical collaborationwith ICAO. The mandate — if one canuse that word — given then was to shapea new regulatory authority that will haveimproved financial and administrativeautonomy for discharge of safety

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Airport developers facecombined service tax liability The Finance Ministry has decided toimpose service tax on the developmentfee the Mumbai and Delhi airports

collected beforethe levy wasbanned, dealing a

further blow to the operators facing afunding gap.

The Central Board of Excise andCustoms (CBEC), the apex indirecttaxes body, has told the two airportsthat the fee will attract a 10 per centservice tax. The combined tax liabilitywould come to over `300 crore.Airport operators have been payingservice tax on “user development fee”but not on development fee. Delhi andMumbai airports collecteddevelopment fee, and used it to funddevelopment, treating it as a capitalreceipt. In April, the SC banned theMumbai airport from collecting thisfee, ruling that it had to be firstapproved by the Airports EconomicRegulatory Authority. The Delhi HighCourt asked the city airport to stop thisfee from June. In contrast, Bengaluruand Hyderabad airports collect userdevelopment fee, which goes to theinvestor and is taxable as it isconsidered a revenue receipt.

The ministry has, however, saidthat development fee will also attractservice tax irrespective of how it isused. “It is immaterial how the grossamount charged from this service istreated in the books of the serviceprovider and to what use it is being putto,” a CBEC letter said. Demandnotices are likely to be sent to theseoperators to recover tax on the feecollected in the past. Senior officials ofthe Delhi and Mumbai airportsconfirmed the receipt of the letter fromthe tax department, but declined togive details, saying their experts wereexamining the issue as thedevelopment fee was not for anyservice rendered.

GMR-led Delhi InternationalAirport Ltd has collected about `1,200 crore as development fee (DF),which was to bridge the project-funding gap while GVK-led MumbaiInternational Airport Ltd has collected`600 crore so far. Experts say lack ofclarity in the definition of service wasleading to such issues.



FROMDGCA TO

CAA

News digest august.qxd 7/29/2011 3:27 PM Page 18


oversight functions more effectively. TheICAO feasibility report was received bythe Ministry of Civil Aviation in March2010, which was later endorsed by theFAA stating it would be in line with theICAO policy.

The draft CAA note — in the form ofa Cabinet note — has been preparedafter studying the existing setup in theUK, the US, China, Germany, Franceand Singapore. After the DGCA notesare studied by the Ministry of CivilAviation, the latter will prepare a draftBill which could be put up on the publicdomain for comments from stakeholderslike airlines, travel agents and thegeneral public. Pending the logicalconclusion of these steps leading to theformation of the CAA, the existingDGCA has submitted a modernisationplan to the government entailing aninvestment of `350 crore.

In the last three to four years, DGCAhas come under lot of public scrutiny formany reasons though most of them arenot of its own making except, perhaps,the issue of fake pilot licences. In thiscontext, the need for grantingadministrative and financial autonomy toCAA stems from the fact that DGCAitself has suffered immensely from thedelays in staffing its crucial safety andother technical arms. For instance,DGCA today has only 130 employeesagainst the required 500.

In its May 2011 report, theParliamentary Standing Committee onTransport and Tourism expressedsurprise that the Directorate of Licensingresponsible for issuing licences to airlinepilots was working with just four GroupA officers against the sanctionedstrength of 26 such officers. Thecommittee headed by Sitaram Yechurysaid: “That such a thing (fake licences)was going on within the DGCA showsthat its in-house supervisory andvigilance system was weak.” It is nowbelieved that the government may soonapprove a proposal for the creation ofsome additional senior positions in theDGCA, which is facing huge staffshortage.

The Ministry of Civil Aviation isunderstood to have proposed that thenumber of Joint Director General (JDG)in the DGCA be raised from three to six.At present, the regulator has three JDGs,two of who are technical and oneadministrative. When it is doubled, theDGCA will have four JDGs in technicalcapacity and two in administrativecapacity. As for the DGCA himself, itwas in March 2011, that the governmentinvited applications for the post of

Director General DGCA. Among theeligibility conditions it said the personconcerned should have aviationbackground with mandatory aviationexperience of not less than 12 years.

The idea was to appoint a totalaviation person instead of stopgaparrangement which the IAS bureaucratshad been providing on and off.Notwithstanding the intention of thegovernment it reportedly drew a blank asnot a single application was receivedfrom any eligible candidate. It, therefore,decided to extend the tenure of E KBharat Bhushan in the acting capacityfor another six months or till the end ofDecember 2011.

Meanwhile, the Ministry of CivilAviation has informed the UPSC to relaxthe eligibility conditions or the normsgoverning the appointment criteria. Thisis yet to happen.

It is now learnt that the IAF isseriously lobbying to get a a senior AirVice Marshal-level official to head theDGCA as it believes it meets themandatory criteria as espoused in theoriginal application drawn up by theUPSC. Perhaps, the issue of “civilaviation” must have come in the way.India’s civil aviation sector will needbetween 1320 and 1500 aircraft over thenext 20 years and the next 10 years willsee the number of people flying rise sixtimes from today’s nearly 60 million tomore than 360 million.

Yet another estimate suggests thatIndia’s domestic and internationalpassenger traffic will grow to 450million by 2020. Thus, it can just be leftto one’s imagination as to what willhappen if safety and regulatory issuesare not focused on even more sharplyand customer issues not treated the waythey are today. Seen in this context, thelethargy, or should we say mandatorybureaucratic aversion to get things donefast, has become evident even on theissue of posting a full-fledged DGCA.

It must be placed on record that thepresent DGCA E K Bharat Bhushanwho is doubling up as the FinancialAdvisor to the Ministry of CivilAviation in the rank of AdditionalSecretary has taken yeoman steps toclean up the DGCA, which was startedearlier by his predecessor IAS officerand now Secretary, Ministry of CivilAviation, Dr Nasim Zaidi. It was inDecember 2010 that Dr Zaidi replacedM M Nambiar as the new CivilAviation Secretary and the vacancy hecaused by moving to Rajiv GandhiBhavan was filled in an “actingcapacity” by Bharat Bhushan.

Vizag airport gears up for moreinternational flights

Visakhapatnam Airport is gearing upto handle more international flights. Atpresent, the airport sees one or twointernational chartered flights weeklyfrom Sri Lanka. According to airportsources, United Arab Emirates’ AirArabia is keen to operate regularflights between Sharjah and Vizag.Silk Airways and Sri Lankan Airwaysare also studying the possibilities tooperate international flights from here.

During the last financial year, theairport handled about 725,000passengers, of which more than 15 percent were overseas. “Vizag airpassengers use Hyderabad, Chennaiand Mumbai airports to catchinternational flights. If internationalflights operate from here, most of thepassengers will go directly from thisplace,” said Varada Reddy, Air UsersAssociation of India. The airport hasCustoms and immigration facilities.“Once more international flightoperate from here, these facilitieswould be strengthened,” he said. “Atpresent, daily 32 services operate fromVizag and we have direct flights toDelhi, Mumbai, Chennai, Kolkata andHyderabad. Another six services willbe added from August second weekincluding daily direct flights toBengalurusss and Tirupati,” he said.

Nation’s tallest ATC tower atDelhiAfter the biggestterminal and thelongest runway,Delhi airport is allset to have thetallest Air TrafficControl (ATC)tower in thecountry. At 100metres, the newATC tower will be much taller than theQutab Minar (72.5 m) and almostdouble the airport’s existing ATC tower.

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Visakhapatnam Airport


ATC at Delhi airport



NEWS DIGEST

At its board meeting on October 21,2010, the Airports Authority ofIndia (AAI) Board accorded in-

principle approval to the Juhu AirportMaster Plan, which envisaged expandingand upgrading the airport with the intentto shift part of the General Aviation (GA)traffic from Chhatrapati ShivajiInternational Airport (CSIA) or MIAL toJuhu Airport and make it a sort of hub forhigh and mighty Mumbaikars withprivate planes, accommodating ATRs andTurbo-Props besides helicopters which inany case it is now exclusively handling.

After the Board meet held in Mumbaiand attended among others by the thenDirector General of Civil Aviation(DGCA) and present Secretary, CivilAviation, Dr Nasim Zaidi, AAI ChairmanV P Agrawal disclosed that the entireJuhu Airport expansion project wouldentail an investment of `2000 crores. Thiswas the only official version of theinvestment plan announced by AAI.Agrawal said the proposal was subject toapproval by the Union Government andrequired detailed technical studies such asATC routing, obstacle analysis, sea bedcontour mapping, EIA (EnvironmentalImpact Assessment) by the Ministry ofEnvironment and Forests before theproject could proceed for final clearance.Since then, there has been no news onhow and what AAI intends to do to makethe Juhu airport expansion plan a reality.Certain developments, however, havetaken place in the public domain.

AAI’s long-term modernisation andexpansion plan for Juhu Airport includedthe following: (i) runway extension (ii)realignment of the runway to

accommodate larger aircraft subject tothe approval of the Ministry ofEnvironment and Forests in terms of EIAclearance. Prior to the undertaking ofthese steps, AAI had engaged KPMG toprepare a pre-feasibility study that said aninvestment of `1500 crore to `2000crore would be needed to modernise andexpand Juhu Airport under a PPP model.At that time, the consultant stated that itcould take up to May 2011 for the studiesto be completed after which clearanceswould need to be taken. It would thentake another two years to implement theproject that would include the new longrunway extending up to 5500 feet thatmay well have to jut out into the sea —akin to the old Hong Kong airport — orbuilt on stilts on the sea.

Either way, it would mean erodingpart of the Juhu Beach space as well as aportion of the road now used by thepublic. As a result, the unrestricted patchof Juhu Beach would be broken up andsplit into two. Among other things it wasstated that extending the Juhu Airportrunway would free 10 per cent to 15 percent of MIAL’s current capacity of about700 to 750 aircraft movements a day atCSIA — or, in other words, at least 70aircraft movements (smaller fixed wingGA aircraft and ATRs, Turbo-Props) aday could shift to Juhu Airport.

As per the AAI master plan, JuhuAirport runway length would beincreased from the present 3750 feet to5500 feet. The current runway length of3750 feet is end-to-end and does notmean that the entire length is available forlanding or take-off. Simply put, pilotsactually have only 2880 feet of runway

The new ATC tower, initiallyplanned to open by mid-2012, willnow be commissioned only byNovember 2013, private airportdeveloper Delhi International AirportLtd (DIAL) said. DIAL has invitedbids for the construction of the newATC complex and tower. Expected tocost `350 crore, the new ATC towerwill be built at a more centralisedlocation at the airport, so that air trafficcontrollers can have a clear view of allthe three runways, aprons andtaxiways.

The present ATC complex and 60-metre high tower was built in 1999 andis at a considerable distance from thethird runway built in 2008. “Even on aclear day, the new runway is notproperly visible from the ATC tower,”said a senior ATC official who didn’twish to be named.

Though all movements aremonitored through radar, a clear viewcan sometimes help avert mishaps ifan animal strays on the runway. Thereare three operational runways at theairport and a fourth is planned whenair traffic increases. The new ATCtower will be situated in the middle ofthe four runways and, with itscommanding height, will not miss aninch of the area of the sprawling 5,000acre airport. “Construction of a newATC tower was not in the originalmaster plan of Delhi Airport in thecurrent phase. However, at theinsistence of the Airports Authority ofIndia and the Ministry of CivilAviation, we have agreed to undertakethe project in the current phase,” said aDIAL spokesman.

“The schedule agreed envisagescompletion of the civil work byNovember 2012. This will be followedby installation of the ATC equipmentand testing, leading to thecommencement of operations fromNovember 2013,” he said. DIALclaimed the project is on schedule andthat the designs have been finalised.

No relief for DIALState-ownedA i r p o r t sAuthority of

India (AAI) has declined to ease thefiscal pressures on DelhiInternational Airport Pvt. Ltd(DIAL), which could potentiallyimpact the firm’s profit.


JUHU AIRPORT: SPLUTTERINGAND SPLUTTERING

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NEWS DIGEST

available from the landing threshold pointonce the aircraft touches down. So, theproposal to extend the entire length to5500 feet needs to be seen from thethreshold point of view. Since this wasgoing to be a long-term plan, AAI wantedthe runway to be 4290 feet which wouldprovide the longer runway length basedon the threshold point of landing. Thusagainst 2880 feet, AAI felt it would beable to get 3420 feet of actual runwaylength from the threshold point of touch-down under the second option. In otherwords, pilots of smaller GA aircraftwould get more flexibility while landingin Juhu. This runway is 08-26.

Pending the main expansion plan, andeven before the second option wasexercised, it was proposed to shift somesmaller fixed wing GA aircraft movementfrom CSIA to Juhu Airport with effectfrom January 2011. But not a single suchtype of GA aircraft and of that size haslanded till date in Juhu. The plan hasremained on paper. No shift is eitheranticipated in the near future for variousreasons enumerated below.

In January 2011, the AAI asked JuhuAirport officials to identify obstructionsin the runway funnel zone pending theinitiation of the expansion and upgradeplan. Over the years many trees,buildings, hoardings, etc have come up inand around the airport and also in therunway funnel zone. An obstacle chartwas prepared and obstructions identified.In fact, some action was initiated inseeking to remove such obstructions bynotifying some building owners and alsosome trees (mainly the job of BombayMunicipal Corporation). Some noticeswere issued to know if they had obtainedthe NOC from AAI. About a month ago,action was taken against a particularbuilding where its eleventh floor wasgiven notice for demolition as it was rightin the runway funnel zone and thebuilding had also not got an NOC fromAAI. It is learnt that around eightbureaucratic clearances were given in aday to the builder of this building.

The Juhu extension project involvesfilling 384 acres of land because theairport is situated in a bowl-like area,which is prone to floods. In the great

deluge that engulfed Mumbai in July2006, the entire parking area ofhelicopters at Juhu Airport including thehangars was flooded rendering operationsfrom the airport impossible for a fewdays. While helicopters can take offvertically, what can happen to fixed-wingGA aircraft is anybody’s guess. Further,another 70 acres of land has beenencroached upon. Recently, the AAIsought the assistance of the BMC todemolish illegal structures inside JuhuAirport built by squatters. The BMCrefused to help stating that it was alreadyover-stretched and involved indemolitions in more important parts ofthe city. In all, 280 acres of land would beneeded for aeronautical development,while the remaining area needs to becleared to prevent water-logging andencroachment.

The KPMG plan as agreed to by AAIinvolved the extension of the existingrunway into the sea by cutting throughthe Juhu Beach and the arterial road forwhich an underpass tunnel would have tobe constructed below the runway for theroad traffic. Even as it is the currentrunway at Juhu Airport which extendsright up to the busy S V Road and GAaircraft wanting to land would not be ableto do so since the minimum clearancerequired for landing will not be met.

Other issues apart, this meantobtaining many clearances — primarily,extension of the runway would meanfacing green obstacles as the project fallsunder the Coastal Regulation Zone (CRZ)and would have to be ratified byMaharashtra Coastal Zone ManagementAuthority. This body would study variousaspects ranging from pollution, effluentdischarge, fishing and coral life to highand low-tide activity.

Till the time of filing this report, noactivity of any significance has happenedin Juhu Airport in relation to expansionand modernisation nor has any GAaircraft movement shifted from CSIA orMIAL to Juhu. It is also not expected tohappen soon since AAI has put theproject on hold.

Even as the Juhu Airport expansiondrama continued on the sidelines, themain act engaging everyone’s attention

The airport had proposed linkingquarterly payouts to the governmentto actual receipts instead of having tomake advance payments as it doesnow. That has been rejected. DIALwanted relief to partially offset thefinancial strain it has come underafter the Supreme Court put a freezeon collection of the airportdevelopment fee from passengers tofund the airport’s $3 billion (`13,320crore today) modernisation bill untilan explicit order was passed by theAirports Economic RegulatoryAuthority, allowing the company todo so.

In addition, state-run Air IndiaLtd, announced as the hub carrier forthe airport last year, is not payingDIAL its dues on time because of thecarrier’s huge debt burden. DIALcurrently pays AAI its share on thebasis of projections at the start ofeach quarter. Officials have said therecannot be a deviation from OMDA(the Operations ManagementDevelopment Agreement thatgoverns the 30-year lease, extendableby another 30 years, of IGIA toDIAL). AAI ran the airport until2006. One of the officials said thatthe DIAL proposal was turned downas no one in authority wanted to takedecisions that could come under anykind of scrutiny at a later date.

A DIAL official, who declined tobe named, said the airport had askedfor the relief because of delayedpayments from Air India and otherfinancial issues. The proposal has notbeen approved yet, the official said.Paying the revenue share after thequarter ended would have helped interms of financing.

.Hungerbuehler is DIAL COOMarcel Hungerbuehler had joined asChief Operating Officer of the DelhiInternational Airport Ltd (DIAL)replacing Peter Noyce, who quit theorganisation to join an NGO.

Prior to this Hungerbuehler hadworked as the CEO of BengaluruInternational Airport before hemoved out in February this year. Hewould report into I Prabhakara Rao,CEO for Delhi Airport, who looksafter overall operational activities ofthe airport. Hungerbuehler has 40year experience in aviation industryand was head of Swissport Zurich,


MUCH EXPLAINING TO DO: (L-R) Dr Nasim Zaidi, Vayalar Ravi, V P Agrawal and Marcel Hungerbuehler.

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around the time V P Agrawal made hisannouncement of the in-principleapproval to the Juhu Airport expansionprogramme in October 2010 was theenvironmental clearance to Navi Mumbaiairport. On November 22, 2010, at apress meet in Maharashtra Sadan, NewDelhi, the then Union Environment andForest Minister Jairam Rameshannounced in the presence of the thenCivil Aviation Minister Praful Patel andMaharasthra Chief Minister PrithvirajChavan that environmental clearance hadbeen given to Navi Mumbai airportproject and that work could startimmediately.

Separately, Jairam Ramesh informedthe then Civil Aviation Minister PrafulPatel that no such clearance could beexpected to be given to the Juhu airportexpansion plans. The EnvironmentMinister wanted the entire Juhu Airportarea to be a No Construction Zone andthat it would be a new green lung spacefor the city of Mumbai. Till he wasMinister, there had been no change in hisstance. It is now more or less clear thatthe report of KPMG has been dispatchedto the cold storage.

The never-say-die attitude of theChairman, AAI, V P Agrawal could,however, lead to some movement in theproject. He conducted an internal reviewof the Juhu Airport project some weeksago after which it was decided that theKPMG project report be sent to the PMO.It was felt that the AAI could not take onthe Environment Minister.

It may be pointed out here thatformer Civil Aviation Minister PrafulPatel personally drove the Navi Mumbaiairport project and a similar approachwould have been required for Juhuairport upgrade as well. Jairam Ramesh,on the other hand, is believed to have told

certain quarters that matter that sincethere was no alternative land available forNavi Mumbai, his ministry — theMinistry of Environment and Forests(MoEF) — had agreed to it in publicinterest. There is no compulsion for it toadopt a similar attitude in so far as Juhu isconcerned. Moreover, the MoEF alsoargued that since Navi Mumbai wasgoing to service the city there was nopoint in disturbing the environment rightinside Mumbai city by expanding JuhuAirport.

Even as the AAI forwarded theKPMG report and its so-called masterplan to the PMO, it drew up Plan B or the`60-crore plan. AAI has beenalternatively considering the possibilityof extending threshold limit for landingby increasing the current runway lengthfrom 3750 feet to 4250 feet, which willbe within the airport premises and wouldrequire no-green clearance. This way thethreshold landing length could beincreased from 2880 feet to say 3420feet. AAI engineering officials say it willnot be possible to do this project inrupees 60 crore and perhaps may costmuch more. AAI Chairman has alreadyforwarded his plan-b to MOCA andMinister Vayalar Ravi who is notenthusiastic as his predecessor andMumbaikar Praful Patel was about JuhuAirport upgrade.

It seems that following the clearanceaccorded to Navi Mumbai airport forwhich tender documents are expected tobe released towards the second half of2011, the possibility of Juhuaccommodating fixed-wing GA aircraftwill be remote if not altogether nil. In factMIAL officials say with the clearancegiven to Navi Mumbai, they arereworking the future NPV of CSIA andmay therefore not want another airport

the largest Ground HandlingCompany at Zurich Airport, whichnow holds only 5 per cent in BIAL.

Hungerbuehler’s appointmentcomes at a time when GMR has beenmaking losses due to huge capitalexpenditure incurred on DIAL. TheBengaluru-based infrastructurecompany, which submitted a `9000-crore plan for New Delhi, whichinvolves building a new runway andnew terminal to accommodate 35million passengers by 2010, sawcapacity doubling up with a total costoverrun of `3,500 crore.

High-rises without NOC: AAI toissue notices

The AirportsAuthority of India(AAI) will issuenotices to thebuilders of high-rise

apartments and flat complexes whichhad not availed the No-objectionCertificate (NOC) required forconstructing the buildings in the city.

Director General of Civil Aviation(DGCA) E K Bharat Bhushan told themedia that he had taken up the issuewith the local self-governmentinstitutions concerned inThiruvananthapuram. AirportDirector Chandramouli, who waspresent at the meet-the-press, said oneof the builders who had constructed ahigh-rise near the airport withoutobtaining the NOC had already beenserved with the notice.

Bharat Bhushan said a hugeamount was being pumped in forupgradation of the Air Traffic Control(ATC). He said the GlobalPositioning System (GPS) beingimplemented at a cost of `750 crorewill be installed at theThiruvananthapuram Airport also. Hesaid the State Government hasassured the DGCA that it would makeavailable 87 acres land for the secondphase of development of the newterminal.

But the airport terminal urgentlyrequired the acquisition of 39 cents ofland to provide a Runway End SafetyArea (RESA) to prevent skidding ofthe aircraft to danger zone andchecking Mangalore-model accidents.As per the safety specification, theRESA required a 90 x 90 squaremetre area.


GALA TIME: People around Juhu Beach.

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howsoever small like Juhu to add to itsrevenue stream problems.

No environmental clearance to JuhuAirport as no violation of CRZ and henceno possibility of extending the existingrunway at Juhu to 5500 feet as stated in theKPMG report or beyond the existing fencearound the airport. Even the possibility ofaligning runway to Mumbai Airportrunway and connecting the gap of 800meters by clearing obstacles in betweenhas been rejected as it would meandisplacement and resettlement of legallydwelling population unlike the squatters inand around Santa Cruz Airport. Taking allthese into account, MOEF recently againrejected (informally) the Juhu Airportexpansion proposal which was the maintrigger for AAI approaching PMO withKPMG version of the project. It is in thiscontext, AAI has alternatively proposed tojust about increase the threshold limit oflanding on current runway at Juhu airportas stated above and about which it hasinformed the MOCA officials. This iswhere the matter reportedly stands AAIofficials say. It may be mentioned here thatAAI has not even forwarded the extendedproposal of lengthening the present Juhurunway beyond 5500 feet to 7500 feet a laHong Kong airport. This will require largescale reclamation of sea and also mayinterefere with Worli Sea Link.

According to MIAL officials, thegenesis of Juhu airport expansion lay inthe discussions they had at the time oflaunching modernisation of MumbaiAirport. Since they knew that CSIAwould get choked very soon, they toldMOCA about the possible expansion andJuhu airport so that part of the generalaviation traffic could be shifted therealong with ATRS and Turbo-Props. Thiswas sometime in 2007. Rest of whathappened has already been describedabove. Even MIAL officials confirm thatsince the announcement was made byAAI in October 2010 there has been nomovement in Juhu nor any GA trafficshifted from CSIA to Juhu. Therefore, allGA traffic in Mumbai remains confinedto CSIA.

The main runway 0927 in Mumbaiwas expected to be completed by June 30,2011. Four rapid exit taxi ways have beenbuilt in CSIA while the plan is to have 11in all. Further two parallel exit ways arelikely to be in place by 2013, which willbe east of 14/32 runway, which wasupgraded last year. But this will requiredemolition of the existing ATC andbuilding of a new one. Even the MRO ofAir India will need to be removed.

In terms of GA traffic, MIAL as ondate has 38 GA movements, which is

round the clock or 24 hours. The GAaircraft range from King Air to Falconand from 10 seaters to 18 seaters. Thebiggest GA aircraft is Mukesh Ambani’sA 319, that is housed in a special hangarnear Jet Airways. Very recently MIALreadied its separate GA terminal, which isnear Gate No 8 on the Kalina side. Thenew GA terminal has its own Customsand immigration check counters. WhatMIAL officials say is that GA movementin CSIA is not the issue but that airsideinfrastructure inadequacy is an issue.Most importantly, the problem of parkingGA aircraft is becoming a major problemas all owners of such aircraft areinfluential and often MIAL gets callsfrom New Delhi to accommodate anaircraft for overnight parking.

The approved number of GA parkingslots in CSIA is 29 that include overnightparking as well. The parked aircraft are oftypes that seat between 10 and 18 asstated above. Even though 29 is theapproved parking slot for GA manytimes, the airport officials are forced toaccommodate a couple or even four moreaircraft that is to say 33 GA aircraftparked overnight.

As for the runways — both main(0927) and secondary (14/32) —officials say the most important topic onhand is how to raise the hourly aircraftmovement in CSIA. Only last year(2010), MIAL appointed Nats, UK, tostudy its traffic and recommend how thehourly aircraft movement could beincreased from the present dismal 32 anhour. Nats in association with bothMIAL and AAI is taking a holistic viewof the project and has already submittedits interim report. The final report isexpected to be submitted in May 2011.Nats has been able to allow 60 aircraftmovement in Gatwick, UK, where thereis only one runway. But this may not bepossible to do in CSIA and hence Nats,AAI and MIAL have targeted amaximum of 45 aircraft movement eachhour. As part of this Nats has alreadyformed a view on disusing the smallersecondary runway and converting 0927main runway for “intense single runwayoperation”. However, whether itsincreased runway use — resulting inhigher hourly aircraft movement orincreased GA movement and parking —it will require massive cooperation fromAir India, which needs to dismantle itshangars, engine and MRO shop.Considering the problem Air India is in,any such step by AI management couldbe construed as a further scam. This iswhere the situation in MIAL rests.

Chennai airport renews itslicence

Forty-four airports in the country,including Chennai and Coimbatore,have renewed their pending licences.The renewals done recently follow anotice issued by the aerodromelicencing authority of the DirectorateGeneral of Civil Aviation (DGCA)last October. The notice had made itclear to all the 63 airports in thecountry that no airport would beallowed to have air transportoperations if it did not renew thelicence by June 30, 2011.

Director General of CivilAviation E K Bharat Bhushan saidthat of the 63 airports, 44 hadrenewed their licences within thedeadline. “The process of issuinglicences for the rest of the airports,including the defence airfields is on,”he told the media. All major airports,including Chennai, Delhi, Bengaluruand Mumbai have renewed theirlicences, he said.

New airport to cut iconic towerto sizeThe much talked-about iconic towercoming up in Wadala may not stretchto 101 floors, or 526 metres, asplanned earlier but instead may haveto be finally built to rather modestproportions. Mumbai MetropolitanRegion Development Authority(MMRDA) officials connected withthe project said that officials from theCivil Aviation Ministry have made itclear that the earlier height would notbe permissible because the towercomes within a four-km radius of thenew airport coming up near Panvel.While this warning had been soundedearlier by the Central authorities, theMMRDA had been hoping that somerelaxation would be possible. “We might have to develop newplans for the project or opt forseveral smaller towers now,”MMRDA officials said.

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Chennai Airport

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The DGCA has begun to churn theIndian aviation industry rathervigorously in order to prepare the

players for intense competitive times inthe coming years. Foreign pilotsemployed in the Indian aviation sectorwould be asked to leaveby 2013. According tothe DGCA E K BharatBhushan, “This is thedate we are planning andwe feel that we will beable to achieve it.”

Airlines will makehuge savings as foreignpilots are highly paidcompared to Indianpilots. There are at 415foreign pilots employedwith various Indian carriers and about1500 Indian pilots who are flying withvarious domestic carriers. There areseven scheduled private airlines in thecountry operating 433 aircraft and thisnumber over the next decade, or say by2025, may go up to 1000 or even more.

The way this sector, except for thebrief lull during the 2008-09 recession,has grown is evident from the fact thatcompared to 6500 weekly departures in2005, there were 12,000 weeklydepartures in 2010. Passengertraffic is now expanding atbreak-neck speed of over 24 percent. IndiGo has placed ordersfor 180 new aircraft followed byGoAir for 72, SpiceJet for 45and Jet Airways for 49 besidesAir India, which is to receivethree more Boeing 777-300 ERsand 27 Boeing 787 Dreamliners.This itself adds up to 370 aircraftbetween now and 2025.

With SpiceJet and Jet, and if

Kingfisher Airlines comes out of thewoods, the numbers one is looking atover the next 10 years could be as high as450 to 500. India has many internationalgateways unlike the city state ofSingapore or even EU where each

member nation has onebig or two biginternational gateways.According to Boeing’sjust released currentmarket outlook, Indiamay require 1320 aircraftin the next 20 years.

This will be inaddition to the existing450 aircraft flying underthe scheduled category.

Airbus Industrie hasestimated it at 1500. In any case in the next15 to 20 years, India can expect to havebetween 1750 and 2000 aircraft (all types— narrow body, regional type, wide body,large planes, etc). Because of theuncertainty of fuel prices and earlierrecession, the fleet induction by manyIndian airlines was staggered. However,with the economy certainly on theupswing — the economy continues toexpand by not less than 8.5 per cent each

Land acquisition for airportexpansion to begin soonWith the pre-survey work pertaining toland acquisition to extend the runwayat Mangalore airport expected to becompleted soon, a clear picture on theextent of land that needs to be acquiredwould emerge. The Airports Authorityof India (AAI) has indicated the areasadjoining the airport at Kenjar that itneeds to extend the runway and thishas been tentatively identified toextend to around 150 acres.

The state government has set aside`15 crore in the 2011-12 budget forextending the runway, he said addingthat the issue of acquiring DakkanPark building close to the newintegrated terminal building at Kenjaris presently with the department ofinfrastructure. There is no clarityregarding who would bear the cost ofacquisition, he said adding there isunanimity of view that acquiring thebuilding is vital from security point ofview.

M R Vasudeva, Director,Mangalore Airport, said providingbetter connectivity to the airport wouldcertainly help boost the customersatisfaction index, which was at 85 percent as against the target of 95 percent.

City far from internationalflightsChandigarh is not going to haveinternational flights taking off from itsairport too soon. As the status of‘’Customs airport’’ has not beenaccorded to the city’s facility, it cannotoperate flights to other countries.

Officials said the process ofgetting the status may take anotherfour to five months. They stated thatonly after declaration of the statuswould the local facility getimmigration and Customs facilities forlimited international operations bynational carriers. As of now,Bengaluru, Hyderabad, Ahmedabad,Calicut, Cochin, Goa, Varanasi, Patna,

INFRASTRUCTURE NEWS ¨̈̈̈��

ADDING VALUE: Foreign pilots form a high share of the Indian aviation industry.

Chandigarh Airport IRONICAL SITUATION: Aviation schools in India are still under-rated.

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year-the aviation sector can be expected togrow by not less than 15 to 17 per cent.

Just imagine if the present fleet of 433aircraft carry over 55 million domesticpassengers plus international passengersbased on an average load of not less 75 percent (including laggard Air India), whatwill happen if the passenger numbers riseto 360 million as predicted by the DGCAin the next 10 years? Can India bepermanently dependent on foreign pilots?Certainly not. The need is for in-housepreparation, which is what BharatBhushan hinted at and wants to worktowards.

The tempo of speeding up theprocedures slowed down with the suddendiscovery of fake pilot licences. Followingthis, the government decided to tighten theprocedure and reformat the examinationssystem for entry-level pilots for CPL asalso those seeking Air Transport PilotLicence (ATPL), which is where most fakecases emerged. In all, there are about10,000 CPL and 4000 ATPL holders inIndia. As part of tightening the procedures,DGCA has initiated third-party audit of allthe 40 flying schools in India. Alreadyabout 20 flying schools have been audited.

Further the Ministry of Civil Aviation

has set up a committee under the DGCA,which is expected to submit its report inAugust or September 2011 on theserelated issues. Following this, the DGCAmay introduce screening tests for entry-level students intending to acquire a CPLand also hold an aptitude test. A uniformexam system and fixed number ofsemesters is also being considered. Thesesteps are welcome. But the issue is: howwill the shortage of commanders be metonce foreign pilots exit in 2013?

After all, considering the number ofnew planes arriving or going to beinducted by domestic carriers both fordomestic and international operations— that means bunching up by at leastthe LCCs and Jet — where will theyfind the pilots? Already IndiGo hastaken away nearly 35 pilots fromKingfisher Airlines, mostlycommanders and also a dozen from AirIndia (domestic) flying the same type ofA320 planes. The second thing, which isnot clear, is when the DGCA says 2013,is it January 2013 or December 2013 oris it going to be mid-2013 as it would befollowing the earlier extensions soughtfor by domestic airlines.

Agra, Jaipur, Amritsar andTiruchirapalli have Customs airports.

Residents of Chandigarh,Panchkula and Mohali have beenwaiting for the international flight forpast two years. It was in July 2009 thatthe proposed international flight forDubai was cancelled at the lastmoment because of lack ofinfrastructure and logistical issues.

Thereafter, in August 2010, localairport authorities offered to startinternational flights for three possibledestinations — Dubai, Malaysia andThailand — on completion of theconstruction of its new terminal. Thenew building opened for operation inMarch this year following the ICCWorld Cup semifinal match betweenIndia and Pakistan and it wasannounced that international flightswould start from June 2011. But notmuch else happened to allow suchflights. Various business organisationslike Confederation of Indian Industryhave, on various occasions, also raisedthe issue of connecting the city withinternational destinations.

Gurgaon will soon have ahelipad for VIP choppers

The Haryana government has asked alldistrict administrations to identifyplaces for landing VIP helicopters. Aletter sent by the state government todistrict officials stated that severaldistricts have failed to adopt minimumsafety measures required for landing aVIP helicopter.

The state government has alsoinducted Eurocopter-145 for the CM’suse. As per guidelines issued byDirectorate General of Civil Aviation(DGCA), the administration must givea certificate about the suitability oftemporary helipad.

Fine aircraft parked illegally inMumbai, says MIALMonths after the Directorate Generalof Civil Aviation (DGCA) cracked the


Helipad on top of a building

Jet Airways has opened the first quarter(April-June) or Q1 of the current fiscal2011-12 with a loss of `123.16 crore whichis supposed to be slightly lower than whatwas expected by the industry. The loss wasmainly on account of rising fuel prices andpassenger preference shifting towards lowfare travel. The loss in Q1 isagainst a small profit of `3.52crore a year ago.

The fact that the full servicecarrier was unable to make profitin April-June quarter —considered the second best periodafter the October-Decemberquarter each year — should be a cause forconcern not just for Jet but the industry as awhole. JetLite, a subsidiary of Jet Airways,also posted a loss of `5.2 crore in thequarter under review. The airline tried toincrease yields by not dropping fares(below costs) to maintain high loads. Butbased on April-June figures, it seemed thatJet would require loads of 86 per cent toattain profitability as against 80 per cent inthe previous year. This may also be due torising capacity being inducted by variouscarriers. The situation will only worsen asthe months pass.

Perhaps, the reference to fares beingbelow cost could be a reference to Air India

that dropped as much as 20 per cent infares to attract passengers and Kingfisher,which despite higher loads was nowherenear profitability. The airline has alsodecided to hold the fares at the currentlevel, citing "irrational competition", saidKG Vishwanath, Vice President in charge

of Commercial Strategy andInvestor Relations and added:"The No 2 and No 3 airlines aredumping cheap seats into themarket, leaving us with no roomto upfares. But the current farestructure is irrational."

The airline also plans to havejust one low-fare brand against the currenttwo- JetLite and JetKonnect - within thenext two months. The company is currentlyweighing options to do this. "We areconfident about consolidating them in thenext two months," said Viswanath. Duringan earnings call recently, Viswanath saidthe airline will have just a single full-service brand and one no-frills airline. Jetacquired JetLite from the Sahara Group in2007, then called Air Sahara. JetLite has afleet of 18 aircraft, all of which are leased.Jet Airways, on the other hand, has astandalone fleet of 97 aircraft. The airlinehas mostly used JetKonnect as a swinginventory, using it as per demand.

��JET HITS LOW WITH LOW YIELDS



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Meanwhile, the financial position of theother full-service carrier KingfisherAirlines which has a large chunk of itsfleet under the low-fare or low-costmodel, Kingfisher Red, continued tostruggle to tide over its financialproblems. The situation has come tosuch a sorry pause that the promoters ofKingfisher Airlines had to pledge 90 percent of their stake with bankersfollowing the debt recast it got from agroup of 13 banks based on RBIapproval some months ago. It was thenbelieved that this would provide abreather to Kingfisher and the airlinewould use the opportunity to float itsGDR to raise a sum of $300 million.

In the interim period, KingfisherAirlines suffered financially and it wasalso not an exception to the rising fuelprices, dropping yields and verycompetitive fares that knocked thebottoms off domestic carriers. Thepromoters of Kingfisher Airlines held atotal of 58.61 per cent with the rest heldby public and banks consequent to thedebt recast. Of this 58.61 per cent stake,the promoters have pledged 52.85 percent stake as part of the continuing debtrecast plan. The two promoter firms —United Breweries (Holdings) Limitedand Kingfisher Finvest India Limited— pledged their stake.

While UB pledged its 40.1 per centstake, Finvest 12.75 per cent. Only 3.04per cent stake of the airline currently iswith Vijay Mallya and 2.72 per cent withUB Overseas Limited. Following thedebt recast, Kingfisher Airlines reducedits debt by about 20 per cent to `6000crore in April 2011 from `7651 crore ayear ago. The gravity of KingfisherAirlines can be seen from the fact thatthe airline never made profits since itwas launched in mid-2005. In fiscal2010-11 it made a net loss of `1027crore on a revenue of `6496 crorecompared to a loss of `1647 crore on a

revenue of `5271 crore in 2009-10. After the debt recast, a consortium

of 13 banks converted `750 crore loanof the airline into its equity totalling23.37 per cent or 8.8 lakh shares onMarch 31, 2011. The shares were thenvalued at a premium and cost the banks`64.48 per share. Today, the same sharesare trading at between `36 and `38. So,between April and July, the shares havelost huge value and the banks should belike sitting ducks. According to stockmarket watchers and based on theirSystematic Investment Return Matrix,assuming a constant sum of money isinvested every month, the KingfisherAirlines shares earned a negative returnof 23.9 per cent in three years: -26.12per cent in two years and -29.15 per centin one year.

The airlines because of its severefinancial crunch is unable to pay both theoil companies and the airport operators,AAI and GMR. In mid-July 2011, someimportant metro flights of KingfisherAirlines were grounded as the oilcompany, HPCL, refused to supply fuelto the airlines as it had not madepayments for previous supplies. In fact, afew flights had to be cancelled. It is notjust Kingfisher Airlines that is losing formany reasons; the helping banks seem tobe losing even more on their investmentand, perhaps, even faster.

Since the uncertainty in KingfisherAirlines has been unsettling themanagement, there has been an exodusof pilots and copilots from the airline toother carrier, mainly IndiGo, which fliesthe same A 320 family aircraft. So far,35 pilots have left Kingfisher in the lastsix months or so and more are expectedto desert the carrier and move to IndiGo,which is all set to operate not just itsforeign flights but also increase itsdomestic presence following theplacement of a new order to buy 180more A 320 aircraft.

whip on aircraft using Mumbai as theirparking base illegally, the MumbaiInternational Airport Limited (MIAL)has approached the Airports EconomicRegulatory Authority (AERA) to levyfines on such aircraft.

When an aircraft is purchased, theDGCA grants each buyer a parkingslot at some airport. Mumbai’s CSIAhas parking space for 28 generalaviation aircraft, as private planes arecalled. But the number of aircraft thatpark here are at least three times more.

In January, when the DGCA headBharat Bhushan was on a visit toMumbai, he saw private aircraftparked in a haphazard manner, withone aircraft wing on top of another. Heasked the MIAL to draw up a list ofaircraft that were allowed to park atthe airport legally.

Kanishka families rejectcompensationAir India Kanishka victims’ familieshave rejected the Canadiangovernment’s offer of $24,000 each forthe 1985 bombing that killed all 329people on board the plane near the Irishcoast. The Kanishka flight 182 to Delhifrom Montreal was blown up mid-air bya bomb planted by Vancouver-basedKhalistani radicals after the Indian armyaction at the Golden Temple in June1984.

The Canadian governmentannounced the $24,000 ex-gratia duringa meeting with families — asrecommended by the Air India inquirycommission. But the offer — whichamounts to $7.9 million in total —enraged victim families who called itinsulting to the memory of their lovedones.

“Once more we are treated withdisdain. It seems that Indian life is cheapin the eyes of Canadian politicians. Thisis so degrading,” Melbourne-based AnilSingh Hanse, whose father NarendraSingh Hanse was the pilot of the ill-fated plane, told a news agency.


Air India Kanishka memorial at Canada.

KFA’S RED TURNSCRIMSON!

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COLUMN/CHOCKS OFF

R Krishnan

It will not be an exaggeration to say that allscheduled Indian carriers are in dire finan-cial straits except for one — it remains aclosely held company and beyond public

scrutiny, so we know little about its finances. Wehad seen in the past our domestic carriers placinghuge orders and projecting a dream, which subse-quently turned into a nightmare. That was thephase when Indian domestic traffic was boomingby over 36 per cent and fuel cost was not evenone-third of what it is today.

Nearly seven years ago, Air Deccan placedhuge orders for more than 60 A 320s. Soon after-wards, it got into a financial crisis and its promot-er Capt Gopinath, as everyone knows, sold hisairline in 2007-08 to Vijay Mallya. Those wereheady days and Mallya claimed that he wouldtake what he had ordered: five Airbus A 380s, afew A 340s and all of what Capt Gopi hadordered in terms of A 320s except that they wouldbe reconfigured suiting Mallya’s high tastes likeleather upholstery, in-flight entertainment, etc. Hewanted every Kingfisher Airlines’(KFA) passen-ger to be his personal guest.

Capt Gopinath, who had to migrate from run-ning a passenger airline to freighter services, istoday again in dire straits and forced to closedown even his cargo operations for the samefinancial reasons. As for Mallya, Kingfisher Air-lines is in deep red. Even after getting the StateBank of India-led 13 banks to restructure hisdebt, there is no relief and Kingfisher Airlines,like the bird it is named after, is in its natural pos-ture — nose down and wing spread out — wait-ing to dive into deep waters for fish. As forMallya, instead of fish, it is money that he islooking for.

While the air traffic market has once againbegun to boom with traffic rising by more than18 per cent in the first six months of 2011, thestock market — at least in the case of airlineshares — continues to be in the red. For exam-ple, Jet Airways when it came out with an IPOin February 2005, with scrip priced at `1150,was valued at a few billion dollars. Today, at`480 per share, the airline is valued at justUS$ 980 million. By that yardstick, it may be

difficult to even value Kingfisher!Jet Airways promoter Naresh Goyal also

made a costly mistake by taking over Air Saharaand after dumping more than `2000 crore andanother `500 crore in dispute, his financial woesare far from over. While these financial hits wereself-inflicted, the outside blow coming from nev-er-ending rise in fuel prices has added yet anoth-er painful chapter to the story of India’s rising —but now falling — airlines.

Mallya’s UB Group and Kingfisher Fininvest,which hold over 52 per cent stake in the airline ,have already pledged all their holdings with thelending banks. In a move that can be termedsome sort of comfort for them in the garb ofrestructuring his debt, he took over 26 per cent ofKingfisher shares at a premium price of `64 asagainst the current market price of below `40.So, these banks have also lost money.

The story of SpiceJet’s new promoters iseven more interesting. Sun TV Group ownerKalanithi Maran, who is closely related to theDMK ruling family, bought out previous pro-moters with shares totalling 37 per cent in June2010. He then went for an open offer as perSEBI regulation. Since the price he offeredwas lower than what was prevalent in themarket, there was no response and Marancoolly sat back after fulfiling his statutoryobligations. He then went on expansion modeand ordered 30 Boeing 737-800s valued atover US$ 2.4 billion and 15 Q400 turbo-jetsfrom Bombardier of Canada valued at $900million. He expected to launch his regionalairline with the turbo-jets from July 2011.Unfortunately, not only the stock markettanked for his kind of scrip but the politicalscenario on his home ground Tamil Naduchanged completely. His political patronagevanished overnight as the AIADMK returnedto power. Now, it is public knowledge thateven Kalanithi Maran is finding it difficult toraise money and launch his regional dreamseven as his LCC SpiceJet, like other airlines issuffering from the serious impact of rising fuelprices and other costs.

We don’t know about IndiGo or for that

The air trafficmarket hasonce againbegun toboom butairlines' sharescontinue to bein the red. JetAirways, whenit came outwith an IPO inFebruary 2005,with scrippriced at ` 1150, wasvalued at a fewbillion dollars.

Painting the skies a deep redAlmost all the airlines have notched up losses despite theboom in traffic in the first six months of 2011. Instead ofincreasing fares to improve yields and matching capacitywith demand, carriers have gone in for more airplanes,comments R Krishnan.


Krishnan’s col august14.qxd 7/29/2011 2:14 PM Page 2

matter GoAir but all others like Jet, KFA, Spice-Jet are all in the red in the first quarter (April-June) of the current fiscal 2011-12. SpiceJet pro-moter Maran through his holding company KALAirways has already pledged — albeit for a shorttime — all his holdings in SpiceJet to raise Rs200 crore to meet some urgent expenses. This is,perhaps, because his request to raise over US$200 million is yet to receive approval from theReserve Bank of India (RBI).

Whatever the case, the placement of Maranand his SpiceJet is no different from that ofMallya and his Kingfisher Airlines. There arewild rumours that the Marans may even exitSpiceJet. While there is no independent way ofchecking that, the fact remains that the situationis pretty bad for most airlines and their respec-tive promoters including GoAir — except Indi-Go that is now getting ready to unleash a newprice war on the Gulf and Singapore sectors.

As a quickfix adjustment, Jet Airways isseriously thinking of combining/mergingJetLite or the erstwhile Air Sahara into Jet Kon-nect, its low fare arm. It is also reordering itspriorities by shifting to a utility band from thebrand band or product band in sectors like theGulf and Singapore. This statement from Jetcame during its announcement of Q1 resultswhich in any case saw losses — much belowmarket expectations. A top Jet official said theairline would also use narrowbody B737s for itsGulf and Singapore operations. Surprisingly,there is also a prob-ability of Jet usingwidebody aircrafton some of itsdomestic routes.

It is supposed tobe a studied reactionto the announce-ment made by Indi-Go President AdityaGhosh who said thathis airline would beflying to both Dubaiand Singapore onvery low fares and without any trappings. Mealsand hot beverages, if forced by DGCA, will beavailable on board for a price. Should this hap-pen, it will be for the first time that an Indiancarrier (Indians are known for hospitalitythough not for punctuality) will charge for foodand drinks on its international operations. Butthe fear is from another quarter. Aditya Ghoshannounced that for a Delhi-Singapore returnflight, IndiGo would charge a fare of SingaporeDollars 276 as against the fare of between Sin-gapore Dollars 700 and 1000 charged by fullservice carriers. What will Mallya do or for thatmatter what will Naresh Goyal do? In any case,Air India is doing nothing and will continue todo nothing. However, Singapore Airlines willcontinue to be fuelled by its excellent productand widebody 777s or A 330s. It will providecompetition with its low-cost arm SilkAir

which already flies to five destinations in India.At the end of the day, will IndiGo make moneyon its international forays? We don’t know.

The lesson, however, that needs to be learntis that even though it is a good thing to garnermore and more market share, will it also bringalong with it high yields and revenue? Perhaps,not yet, in the Indian context as is evident fromthe recent past of Indian carriers. Jet Airwayshas already expressed serious apprehension atthe dropping of fares by Air India and Kingfish-er in the recent past to boost passenger loads.But what we have seen is that Kingfisher Air-lines — even after dropping fares — is threat-ened with the prospect of being pushed to thethird place while Air India is likely to move tothe fifth place. Maybe we need a new commis-sion to find out the truth even as everyoneknows that the solution in the short term lies inincreasing fares to improve yields and matchingcapacity with demand. This is not going to hap-pen considering the kind of orders Indian carri-ers have placed — mostly for domestic opera-tions.

There is another danger lurking in the cor-ner: shortage of pilots, aircraft maintenanceengineers and associated personnel. So, as theairlines begin inducting their new fleets, theywill also begin to pinch crucial people like pilots— mainly commanders — from other airlines.Already IndiGo has done this with Kingfisherand taken away nearly 35 of its pilots. About ten

commanders haveleft Air Indiadomestic for Indi-Go.

When privateairlines wereallowed to startscheduled domes-tic services in1993 there waslargescale poach-ing from IndianAirlines and alsobetween each oth-

er which forced the DGCA to insist on ‘NoObjection Certificates’ from the pilot-losing air-line as well as a waiting period of six months.Today, I wonder if the situation is the same but Iknow for certain that the DGCA would not liketo get into too much of it as later it may discov-er that NOCs were handed out easily because ofthe fear of pilots turning out to be fakes! I meanit as a joke but the gravity of it is neverthelesstrue. We have been hearing that some airlinesare reducing the hours for turning copilots intocommanders in order to meet the commandershortage. Though they meet the DGCA guide-lines, they are nevertheless far away from glob-al good practices in this area. �

(Veteran journalist and long-time aviation watch-er R Krishnan is Consulting Editor at CH. He can

be reached at [email protected].)

There is anotherdanger lurkingin the corner:shortage ofpilots, aircraftmaintenanceengineers andassociatedpersonnel. So,as the airlinesbegin inductingtheir new fleets,they will alsobegin to pinchcrucial peoplelike pilots fromother airlines.

33CRUISING HEIGHTS August 2011

BACK TO BASICS: Domestic carriers have to pull up socks.

Krishnan’s col august14.qxd 7/29/2011 2:14 PM Page 3

34

GLOBETROTTING

Believe it or not, Malaysia Air-lines recently imposed a banon infants flying in the firstclass cabin of its Boeing 747jets and has confirmed it will

also apply to its A380 superjumbos whenit takes delivery of them.

It all happened when the airline’sChief Executive Tengku Azmil on Twittersaid the airline’s policy of banninginfants from first class had been inplace for a while. Azmil said theairline had received manycomplaints from first-class passengers whohad spent big moneyto fly in the cabin butwere unable to sleepdue to crying infants. He said parents trav-elling with youngchildren could fly inbusiness or economyclass.

In the wake of media attention theairline posted a statement on its website,stating the ban came about as a result ofthe airlines revamped first-class seats,with an electrically operated ottomanthat doubles as a visitor seat. “As a resultof this seat revamp and the introductionof the ottoman, there was no facility forpositioning bassinets in the first class ofthe B747s,” the website said.

The issue of children onflights is always contro-

versial. A survey lastyear found 60 per

cent of travellerswanted airlinesto create a“family friend-ly” section ofthe aircraft tokeep children

contained toone area.

In a bizarre incident,an intoxicated farmerwas run over andkilled by a biplaneafter falling asleep ona runway. Theincident happenedwhen Bartosz Dudek,53, decided to take anap on what hethought was a patch of grass but wasactually a rural airport’s landing strip. Meanwhile, the pilot of the single-engine Antonov An-2 failed to see the

man while landing ataround midday at theairport in the provinceof Krasnodar. Thepilot, who has beencleared of any blamefor the accident inKrasnodar, southernRussia, said apart froma slight bump the

single-engine aircraft landed withouta problem. Interestingly, according tothe reports no charge was filedagainst the pilot.

This is a classic case of animaloverpowering man’s bastion. A groupof Turtles intruded John F KennedyAirport in New York therebywandering on the runway in search ofa sandy beach to lay their eggs. TheNew York Post reported that thecreatures held up flights, closing arunway and forced staff outside tohurry the slow-moving animals tosafer ground. Runway 4L was shutdown for an hour as Port Authorityteams worked to move the animals.Workers from the Port Authority and

What a joke! An anti-gay rantbecame so offensive that a Southwestpilot James Fritzen Taylor had toapologise. And ultimately, the pilothad to issue written apologies to hisfellow employees. Taylor sent a letterto the employees of the airlinesaccepting responsibility for the“derogatory” and “truly insensitive”comments.In the letter he asked forgivenessespecially from Houston-based flightcrews — on the tape, he describedHouston as “easily one of the ugliestbases”. The letter stated: “Because ofthe impact of my comments, Iwanted to communicate with youdirectly. Please accept my mostsincere apoogy for the inappropriateand disrespectful remarks I made inMarch with an open microphone. Ideeply regret the derogatory remarksI made and the hurt I have caused —I take full responsibility for thosecomments. It was truly insensitive ofme and I would like all of you toknow that from now on, I will shownothing but the utmost respect duringmy interactions with all employees.”

GAY BASHING INPILOT STYLE

AIRPORT UNDER SEIGEFROM RUNWAY TO HEAVEN

NObabies,please!!!


globtroting.qxd 7/29/2011 3:45 PM Page 2


Passengers on a US Airways flight toAsheville were evacuated on thetarmac after smoke filled the cabin ofthe plane at Charlotte DouglasInternational Airport. WCNC-TVreported that US Airways officialssaid Express Flight 2263 wasevacuated before takeoff. 70passengers and four crew memberswere on board. Officials said twopassengers were hurt during theevacuation but their injuries were notserious. Buses removed passengersfrom the area. The airline worked

with the passengers to rescheduleflights.

SCORPION IN FLIGHT What would happen if you get stung by a scorpion in aflight? This was exactly what happened with Jeff Ellis ofWest Linn, Oregonwhen he was stungby a scorpion whileon a commercialflight from Seattle,Washington, toAnchorage, Alaska.

He was trying tosleep on the 1,400-mile overnight AlaskaAirlines flight when he felt something in his sleeve andtried to brush it away. “I picked my hand up and said:Oh, my God. That’s a scorpion,” he told KPTV. Ellissaid he grabbed the Scorpion with a napkin and showedit to his girlfriend, but not before it stung him on theelbow. Ellis was quoted as saying that he was pleasedwith how the airline handled the situation and he hadbeen offered 4,000 frequent-flier miles and two round-trip tickets.

“Never in a million years, would I have thought ascorpion would have been on an Alaska Airlines flightheaded to Alaska,” he said. “Everybody I’ve talked tothinks it was incredible, unbelievable. I’m here to tellyou, it was definitely there.”

MID-AIR TRANSFORMATION,LADY GAGA STYLELady GaGa clearly isn’t one to put her feet up and relaxon planes. The singer underwent her latest major imageoverhaul on a short flight from Japan to Taiwan. Wavingadeiu to fans in Tokyo, the Edge of Glory star was cladin the green wig she’s been wearing for much of heremotional trip to Japan. She teamed up witch-like lockswith conventional top and skirt, finishing off the lookwith her trademark super-soledshoes.

But mere hours later, shetouched down at Taoyuan Airportin Taiwan in a completelydifferent guise. Gone was thegreen barnet, replaced by a

towering creation of blonde hair with black streaks. Shematched the elaborate hairdo with a two-tone dress anddark shades. Afterwards, GaGa made a huge impact inJapan, urging tourists to travel back to the country in theaftermath of the March 11 earthquake and tsunamidisaster.

BUS-ING IT BY AIR Passengers gets angry and they get more angry when they areleft stranded at the eleventh hour. One such incidenthappened when disgruntled Air Zimbabwe passengers lashedout at the airline’s management for asking them to completetheir trips by bus."We expect asoundmanagementsystem in place.As a nationalairliner, it carriesour nationalpride, but wecannot say so ifthey offermediocreservices like this.If they are failing they should simply stop or call in privatepartners. Air Zimbabwe should know that as passengersgenerate income for the national airline hence they shouldrespect us and not tell us to jump onto the bus,” quoted oneof the passengers on flight.

Air Zimbabwe Acting Group CEO Moses Mapanda saidthey had resolved to limit their flights in and out of Hararebecause of the Boeing 737s, which were grounded but saidthey always advised their passengers in advance of anycancellations. Mapanda said they, however, did not bookpeople on buses as alleged.

“We contact our clients in advance and we give them threeoptions. The options we offered them were either they arerefunded, book on the next flight or we put them on anotherairline," said Mapanda. "We have a flying time schedule, whichwe have adopted since the Boeing 737s were grounded,otherwise we are flying.” Disgruntled Air Zimbabwe passengerslashed out at the airline’s management for asking them tocomplete their trips by bus.

EVACUATE! IT'S SMOKE OUT THERE

the US Department of Agriculturewere scooping up turtles and movingthem across the airport as thenewspaper reported. An airline wasquoted as saying, “Running overturtles is not healthy for them nor isit good for our tyres.”

globtroting.qxd 7/29/2011 3:46 PM Page 3

Had Air India gone nose downfrom outer space, the frictionof its entry into the earth’satmosphere would haveburnt it completely. Fortu-

nately for the Maharaja, it has been comingdown for a long time from within the oxy-gen-filled atmosphere and instead of crack-ing itself up, it is continuing to burn a bighole in the treasury chests. Maybe it is timeto write a new book — Discovery of AirIndia — where instead of recounting histo-ry as the original Discovery of India writtenby India’s first Prime Minister Pandit Jawa-harlal Nehru did, Air India’s history beingcreated on a daily basis for all the wrongreasons will fill up the pages.

Air India employing 41,000 personsincluding 10,000 as contract labour, has runup a debt the size of which has now farexceeded the expenditure incurred by theUnion government on guaranteeing workand wages to millions of rural Indiansunder the Mahatma Gandhi National RuralEmployment Guarantee Act. This flagshipprogramme of the United ProgressiveAlliance (UPA) government was allocated`40,000 crore in the Union Budget for2011-12. In the absence of any far-reachingsolution, the government seems to be stuckand forced to operate the Air India employ-ment guarantee scheme. In these competi-tive days where low cost is the buzzword,the government is unable to move awayfrom its very high cost airline operations. Inany other country, they would have eithershut down the airline and if it was political-ly not feasible as is true with Air India, thendownsize it drastically to improve the eco-nomics of running the enterprise. But this is

not happening and it was in this context thatwe said: “Air India is continuing to burn abig hole in the treasury chest.”

Air India’s loss and debt burden todaystands at `67,270 crore and the Air Indiamanagement wants the Union governmentto infuse funds into the airline as fast and asearly as possible. Since the time the state-owned carriers, Air India and Indian, weremerged in April 2007 and the end of the lastfiscal on March 31, 2011, the merged AirIndia had run up an accumulated loss of`20,302 crore. Besides, it has incurred adebt burden of `46,950 crore, of which air-craft purchase loans have accounted for`20,185 crore and ̀ 22,165 crore in workingcapital loans besides over-dues to debtorsmainly banks, Airports Authority of India(AAI) and oil companies of `4,600 crore.

AI made at least three turnaroundplans, which have come back to it likeboomerangs. Each of the turnaround plansassumed more in the realm of imaginationinstead of being rooted in reality. But whattaxpayers are seeing is a reality show wherethe crumbling of Air India is not just per-ceived but happening before everyone’seyes. We were, perhaps, the first to carry inthese pages the imminent collapse of AirIndia three years ago. We even separatedfacts from fiction. What happened after thatwas fiction took over and the results arethere for everyone to see.

It was, therefore, not surprising that atthe July 18 Group of Ministers (GoM)meet, when Delloite was about to make itspresentation on Air India’s turnaround planbased on what it was fed by the first con-sultant, SBI caps, the head of the GoM,Finance Minister Pranab Mukherjee asked

36

COVER STORY

PLEASE, SIR, I WANT SOMEMORE

AI made at least threeturnaround plans,which have comeback to it likeboomerangs.Each of theturnaround plansassumed more inthe realm ofimaginationinstead of beingrooted in reality.

AS AIR INDIA ASKS FOR MORE MONEY, FINANCE MINISTER PRANABMUKHERJEE IS ASKING TOUGH QUESTIONS TO THE AIRLINE’S MANAGEMENT.A SPECIAL CORRESPONDENT LOOKS AT THE AI ROLLER COASTER RIDE OF THEPAST THREE YEARS AND DETAILS WHAT CONFRONTS AIR INDIA TODAY.


cover story krishnan.qxd 7/29/2011 1:50 PM Page 2

them to stop and advised that it needed tobe re-worked and at the same time alsoinstructed the finance sub-committee underthe Expenditure Secretary to re-examinethe financial claims of Air India.

As part of its turnaround plan and alsofinancial restructuring plan, Air India said itwould issue redeemable preference sharesfor over `7,400 crore out of its `22,165crore outstanding working capital loan. AirIndia offered an interest rate of 8 per centon these bonds. What it did not explain washow and from where because the plan aswe said earlier bordered more on imagina-tion than reality. Air India also proposedthat it would repay `11,000 crore of out-standing loans at 11 per cent interest over a15-year period. The Maharaja’s financialrestructuring plan also called for anotherhuge equity infusion of nearly `31,000crore through funding of principal andinterest repayments matched against theguaranteed aircraft loans up to financialyear 2021. This including the upfront equi-ty infused and money for funding cashdeficits would take the total equity infusiontill the year 2021 to `49,920 crore.

This grand plan comes on top of aninjection of only `2,000 crore split between`8,00 crore and `1,200 crore over the lasttwo fiscals thus taking the total equity ofAir India to `2,145 crore. Against thisbackdrop, one does not know what to sayabout the observation of the Civil AviationSecretary Dr Nasim Zaidi when he said thegovernment was fully committed to helpAir India. He said, “Initiatives are beingcoordinated at a very high level and gov-ernment is very committed to supportingAir India and the problem will be sorted out

in a time bound manner.” But Dr Zaidi’s remark actually flies in

the face of what Air India had legitimatelysought from the government. For instance,Air India sought payment of `1,222 crorefrom the Centre for operating VVIP andspecial flights over the last five years. Dur-ing this period Air India operated 47 VVIPflights for which it withdrew five Boeing747-400s from commercial services for atotal of 313 days. But the government hasreportedly agreed to pay only `8,02 crore.There were rumours that Air India had notbeen maintaining its books on these flightsproperly and, therefore, the need to re-look.

The googly came from the Delloite-vetted SBI caps AI revival plan, which,among other things, suggested that AirIndia should induct another 240 narrow-body and widebody aircraft over 10 years,which would make the Maharaja viable by2020. It was in this context that the plantalked of a fund infusion of `43,255 croreover the years. Obviously, the moment thissuggestion was heard by the GoM, therewas all-out consternation. A senior financeministry official questioned how Air Indiacould be allowed to swing into expansionmode when it was unable to utilise its exist-ing fleet optimally. While it placed 15 Boe-ing 777-300ers, it decided to postponereceiving the delivery of three such wide-bodies that are making money for manyglobal airlines flying into and out of India.

Even its narrowbodies — be it the Boe-ing 737-800 flown by Air India Expressand Airbus A320 family aircraft used byAir India domestic — have pathetic dailyutilisation compared to any other airlineboth within and outside India. Already

because of the poor utilisation, the pilotsbelonging to the Indian Commercial PilotsAssociation (ICPA) struck work as theybegan to get lower salaries and allowancesdue to lower flying hours logged as part oftheir duty. But within the same Air India,the pilots flying medium and long-haulwidebodies were being paid far more athigher fixed hours of flying even thoughthey might not have flown that many hours.It was rather strange that the pilots of AirIndia Express were paid more than thecommanders and co-pilots of Air Indiadomestic (erstwhile Indian) who were paidmuch less for similar routes. Against thisbackground, for the airline, to seek 240more aircraft on top of the 111 aircraft ithad ordered in 2006-07 came as a bolt fromthe blue to the government and the GoM.

It needs to be mentioned here thatwhen both Indian and Air India placedorders for a total of 111 aircraft in 2006, theMinistry of Civil Aviation officials hadreportedly noted in the file that the revenuethese aircraft would generate would easilypay back the loan taken for aircraft pur-chases. Now it is for all to look at thetragedy of Air India. True that for manyreasons Air India has not been able to makemoney or ensure high loads and thereforelower yields compared to competing air-lines — both domestic and foreign. Thequestion that needs to be asked is whetherthere is any redemption for Air India. Obvi-ously none, if the current drift continues.

What needs to be done is to ensure adrastic downsizing and shock treatment tothe commercial staff of the airline so thatthey get passengers back to Air India. Thestaff needs to know that Air India is nolonger the only patriotic airline as there aremany from the private category as well. Tosay that only public enterprise can be patri-otic will be a distortion of the truth sinceeven private enterprises are as patriotic. Itwill be like saying that only governmentservants are patriotic Indian citizens. This isprecisely the dilemma the government isfacing and is unable to resolve. Even if weassume that there is a complete freeze onany more bilaterals, Air India still will notbe able to do much because its culture is toown what does not exist anymore. Againstthis background, the demand for `17,000crore (all inclusive) made by Air India for aturnaround not only seems fishy but couldalso end up as the most risky venture theUnion government would have everattempted. The reason why we say it will bethe riskiest because Air India would wanteveryone in the GoM, the Government ofIndia and elsewhere to believe that it willbe able to perform very well because allother competing airlines will simply sit andsuck their thumbs!


CRISIS MANAGEMENT: Finance Minister Pranab Mukherjee, Prime Minister Dr ManmohanSIngh’s crisis manager, has questioned Air India’s turnaround plans.

cover story krishnan.qxd 7/29/2011 1:50 PM Page 3


THE LONG-AWAITED DREAMLINER FROM BOEING ONWHICH AIR INDIA HAS PINNED ITS HOPES FOR A REVIVAL,FLEW TO INDIA RECENTLY TO SHOW OFF ITS CAPABILITIES.

ON BOARD WAS ABHIJIT BHATTACHARYYA. HE WASIMPRESSED BY WHAT HE SAW AND EXPERIENCED

DURING HIS 52-MINUTE FLIGHT. A REPORT.

DREAM

COVER STORY

cover story dream d.qxd 7/29/2011 4:51 PM Page 2


It was a “dream” launch for “Boeing-787 Dreamliner” programme on April26, 2004 as All Nippon Airways too announced a big order for 50 aircraft asthe “launch customer”. Nothing could be better than this; yet the “dream”soon soured; despite Boeing studies showing “20-year market for between2000 and 3000…airliners of 787 class”, on January 1, 2009, “orders heldwere for 910 aircraft” which soon “reduced to 840 by the time of first

flight” and increased to “851 at the end of 2009”. All this happened owing to delayin developing the craft and teething problems eating into the economics of the manufacturer’s product. However, things did look rosy when the “Super EfficientAirliner” studies began 2001-2002 and the new product was named “Dreamliner”on June 15, 2003. The programme planned was a “15000 hours of tunnel testing”.

DEBUT

GRAND SET-UP:A panoromic view ofBoeing assembly line.

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40

COVER STORY

The “good” planning nevertheless soonturned “not-so-good” a performance as“airworthiness delayed by flight controlsoftware availability and need to completemanufacture of some sub-contracted partsof airframe on production line owing toworldwide shortage of aerospace fastenersat the time of subassembly” struck Boeing-787 hard. Boeing was compelled toreschedule its maiden flight (from) Novem-ber/December 2007 to first quarter of 2008.Boeing’s woes did not end, as subsequentlytoo schedules were re-fixed, delayed andfailed to keep with the target dates for land-mark developments. “These dates,” as wasfound later, “did not take into account ofunofficially reported problems requiringstrengthening of centrewing box”. Ulti-mately Boeing “abandoned plans to assignfirst six (trials) aircraft to airlines”.

The embarrassment of the manufac-turer inflated as the “787 prototypewas…reported to be 9548 kilogrammes(21050 pounds) overweight... Boeing alsoacknowledged range deficiency of early787-8s, which expected to fall short oftarget 8000 nautical miles (14816 kilome-tres/9206 miles)”. Understandably, thedelayed programme created an unpleasantand embarrassing situation as can befound from the reported ambivalence ofcash-starved Air India, which appearseager to cancel some orders and seekfinancial compensation for delayed deliv-ery by the manufacturer. Although nonecan question or doubt the quality of aBoeing product owing to its legacy andlineage, Boeing’s marketing team willhave to go that extra mile to convince alland sundry about the value-for-money forthe delayed product, confirmed 27 aircraftorders of Air India notwithstanding.

Intended to “reduce seat/mile costswhile providing increased versatility byenabling direct operations into smallerairports, thereby obviating the inconven-ience of passenger transfers at hubs”, eachB-787-8 aircraft, as reported by Jane’s AllThe World’s Aircraft 2010-2011, is likelyto cost between “US $ 157 million” (`722 crore approximately) and “US $167 million” (`768 crore approximately).And that is not cheap. But “Boeing”,reportedly, “has failed to post 2006prices”. What does that mean? Does itimply a further potential escalation ofprice owing to the delay at the manufac-turer’s end? If that is the case, is not thereany clause in the “contract” for penal pro-vision for the delayed delivery?

Now coming back to the actual per-formance of the flight test/demonstrationflight undertaken by Boeing on Thursday,July 14, 2011 at Delhi airport, one canonly appreciate the clockwork precision

and professionalism of the manufactureron board. It was an All Nippon Airways“green” (aircraft flyable but unpainted,unfurnished and basically equipped) Boe-ing-787-8 powered by two Roll Royceengines of 69000 pound static thrust.About a decade ago, one flew the twin-engine Boeing-717 prototype (subse-quently aborted) from Mumbai to Delhi inthe cockpit along with the test-pilot andthe engineering entourage of the craft.However, the aircraft could not pass thelitmus test of both, manufacturer’s qualityand the consumer’s choice.

July 14, 2011, however, was a new dayfor a free citizen to fly 52 minutes fromDelhi to Delhi (via Jaipur sky) in a techni-cal demonstration by the Boeing-787-8Dreamliner. Accompanied by a select bandof 10 passengers, one’s “extra-privileged”slot lay in one of the “jump-seats” (there aretwo seats behind the flying crew) to takedown all the flight information report forone’s log book and diary.

On an overcast sky of high humidityand gentle head wind, the 183’ 5” longand 197’ 3” wing span, 160 tonnes(weight) Boeing787-8 smoothly lifted offat 150 nautical miles (277.8 kilometreground speed) on one of the longest run-ways (number11/29) of the country inDelhi airport. Turning right to graduallybacktrack 180 degree, the Dreamlinertook flight level 20000’ at 700 kilometreper hour ground speed and smoothly pen-etrated the dark pepper and salt coloured(gathering) cumulo-nimbus clouds withoccasional mild lateral turbulence therebygiving a feeling of a shaky aerial postureof fragility and fear, addiction and passion-- all in same quantity but with a varyingquality. Clouds aside, what could possibly

unnerve an uninitiated passenger was thefrequent crackling sound of the unconven-tional raw material (like carbon-fibre usedin windows) adjusting with the changingaltitude of the ascending and descendingaircraft along with the temperature,humidity, radiation, heat, weather and thevelocity and direction of the wind.

Short of Jaipur began the “return”flight at a higher altitude of 21000’ withdenser cloud and a stronger cross wind.The various display systems of the cock-pit nevertheless were transparent and visi-ble with varying colours and the handlingof the control giving instantaneous com-mands to flap, slat, aileron, power plant,systems, avionics and landing gear there-by making the Dreamliner easy, accessi-ble and simple to operate. The best, how-ever, was the sun-breaker for the pilotwith varying colour combination to dealwith the changing contours of light, shad-ow and shade for day and night opera-tional flexibility and soothing vision.

With complete fly-by-wire (electri-cal/electronic systems which functionquick, fast and instantantly) and digital-controlled command capability, the testpilot shut each of the 69000 pound staticthrust engines by rotation thereby check-ing and demonstrating the automatic-flight-control/systems correction capabili-ty of the aircraft at an altitude20000’/21000’. One thus lost the sound ofthe humming engine for a fraction of asecond, only to be followed by course-correction and “attitude” (the posture ofthe craft in the air) stabilisation in notime. Understandably, first it was the fearof unfamiliarity and the unknown. But,soon it became fresh knowledge for thecurious mind. One need not have to learn


PRIDE AND HONOUR: Dr Dinesh Keskar (second from left) welcoming the arrival of Boeing 787Dreamliner during its maiden visit.


41

the “sequence of simulated crisis” in theair. Yet, one learnt a trick of professionalhazard in the 21000’ thin summer air ofthe “Aryavarta”. Down below lay theparched swathe of barren landscape of theAravalli highlands with ground tempera-tures rising as high as 110 degree Fahren-heit. The craft made a feather-touch land-ing at 146 nautical miles after spending52 exciting and illuminating minutes inthe air.

Since Air India placed an order for 27Boeing-787-8, powered by two GeneralElectric X turbofans (each in 52800 to69000 pound static thrust), on December27, 2005, Boeing officials’ eagerness totake the Indian glitteratti to have a “real”glimpse of the craft is understandable.Nevertheless, a doubt lingers, owing pri-marily to costly time over-runs pertainingto the deliveries to India’s ailing Mahara-ja. One hopes Boeing’s delayed deliverywill not cost Air India dear, the unques-tionable quality of the aircraft notwith-standing.

Boeing-787-8’s operating cost isreported to be US $ 5160 per hour (as on2006), thereby making it `240000 expen-diture per passenger group. Boeing never-theless “has failed to post 2008 prices”. Ithas been claimed by Boeing that the 787-8 has “efficiency gains of 15 to 20 percent, compared to Boeing-767, to beachieved by 17 per cent reduction in fuel-burn, aerodynamic improvements and air-frame reduction”. In its own way, 787-8 is

the “first airliner with all-composites pri-mary structure in fuselage and wing; andfirst to dispense with engine-bleed andpneumatics in favour of increased elec-tronic components”.

To a curious observer a questioncomes in mind; what exactly is the utilityof the Boeing-787-8 and whose space is itgoing to fill up? The answer is providedby the design of the aircraft, which is abigger, heavier and upgraded design andversion of Boeing-767, which wasordered by United Airlines on July 14,1978. Both B-767 and B-787 are twin-aisle, wide body medium/long-rangetwin-turbofan airliners. Yet, both are dif-ferent from each other. B-767 is the prod-uct of the last quarter of the twentieth cen-tury; B-787 is the showpiece of the sec-ond decade of the twenty-first century. B-767 empty operating weight variedbetween 80.51 tonnes and 89.13 tonnes.B-787 Dreamliner empty operatingweight ranges from 101.19 tonnes to115.35 tonnes. B-767 payload was limitedbetween 16.57 tonnes to 23.67 tonnes; B-787 maximum structural payload is 45.35tonnes. B-767 maximum take-off weightvaried between136.08 tonnes to 181.43tonnes; B-787 is between 165.10 tonnesand 244.94 tonnes. Again, whereas theoperational radius/range of B-767stoodbetween 3160 nautical miles (5852 kilo-metres; 3636 miles) and 6060 nauticalmiles (11223 kilometres; 6974 miles); B-787 has a higher and longer (ambitious)

range in mind. Thus from all angles B-787 is an upgrade and superior to B-767.

Boeing-787 has undoubtedly crossedseveral teething problems thus far. Nev-ertheless, one cannot rule out fresh,unforeseen or unanticipated problems incase the extensive use of composite rawmaterials do some tricks in the air! Nodoubt a unique and novel attempt hasbeen made by Boeing, but the actualresult of the craft’s quality will take timefor the world to see and judge. In thisscenario, it would be imperative for AirIndia to make judicious and careful useof the new assets, which have beenordered from the Boeing-787-8 manu-facturing plant. The aircraft, as men-tioned earlier, is a wide-bodied, electri-cally (fly-by-wire) controlled aero-plane with an acclaimed pedigree, andfuel-efficient engine no doubt. Yet onealso sincerely hopes that the new Boe-ings would be used in such a way toenable the Maharaja of India to turnthe corner through its experienced andinexhaustive human resources in thenear future. The machine may be good.But it is the man behind the machinewho will matter to make it a success ora failure.

(The author is an alumnus of theNational Defence College, New Delhiand a member of International Institutefor Strategic Studies, London. The viewsexpressed are his own.)


DREAM ENTRANCE: The Boeing Dreamliner receives a watery welcome at Delhi.


Privatisation of Air India, given itspresent state of financial health, isnot a solution at all. Who wouldlike to take over a company that is

on its deathbed? The value one would getwill not even be that of scrap! If that be so,who would like to take it over at a throw-away price? Perhaps, it would be one ofthe existing operators who has been con-sistently and continuously favoured bydeliberate acts of making Air India sick!They would love to do it since they woulddiscount the liabilities and cash in on theassets — both real and intangible. In fact,the recent clamour for privatisation of AirIndia, it is alleged, is being articulated bythe existing private sector operators sincenone other than they can bid for Air Indiain the present atmosphere. No newinvestor in their senses would touch itwith a barge pole.

I am not and I was never an employeeof Air India. Nor do I claim to have anygreat expertise on aviation matters. But Ihave been closely associated with AirIndia for a number of years. I have notbeen writing articles on how to save AirIndia or waxing eloquent on TV channelsabout what is wrong with Air India. I ameven more hurt when I see people, whohave been responsible for this mess, havebeen criticising the present managementand the government. It is not my view thatthe present management and the ministryare blameless. But hearing it from persons, who have been active parties to thedownslide of Air India is rather painful. Iknow from my personal knowledge thatsome of these columnists and TV debatersare the people, who bent over backwardsto please the ministers and civil servantswho brought it to such a pass.

Air India has a committed set ofemployees except a few at the top whoseonly aim is to get favours for themselvesfrom ministers and other civil servants ofthe ministry. The general motivation ofmost employees may differ from person toperson. They may have petty jealousiesand competition among themselves andmay even try to use influence to get out-of-turn promotions and lucrative postings.But almost all of them are deeply commit-ted and loyal to the company. They are asmuch peeved about the present state ofaffairs. It is not difficult to identify thecauses that brought Air India to the pres-ent mess. The mess has not been broughtout by the Air India management alone. Alarge part of the blame should be attrib-uted to various decisions of the govern-ment that systematically undermined thecompany to benefit others — both domes-tic and foreign. One has to nullify thesedecisions that brought about this sad

COVER STORY

PRIVATISING AIR INDIA CANNOT

BE A SOLUTION,WRITES A FORMER

CIVIL SERVANT. THENATIONAL AIRLINE

HAS TO BE FIRSTBROUGHT BACK TOHEALTH AND EVENBEFORE THAT, THEGOVERNMENT HASTO STOP RUNNING

THE AIRLINE BYREMOTE CONTROL.


THESADSAGAOFAIRINDIA

cover story august.qxd 7/29/2011 12:38 PM Page 2

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state-of-affairs and then try to privatise it.All the existing players in the domesticaviation sector should be debarred frombidding for the airline as and when it isdone. Secondly, the artificial restrictionon foreign equity holding by foreign air-line operators in Indian carriers should bedone away with. I do not hold the viewthat Air India should not be privatised.But it should be done after restoring it tosome degree of health so as to realise val-ue as well as to enable it to compete withothers.

TURNAROUND — The magic wordhas been used consistently over the lasttwo decades in the context of Air India.The manner in which it is turning aroundwould indicate that it is never still and itis turning around for the worse every day.

I have a different take on the recentstrike by the pilots. I am convinced thatthe airline reduced losses during the strikeperiod. The daily loss of Air India is ofthe order of `15 crore a day. When theaircraft did not take off, the company didnot have to uplift fuel, pay salaries to thestriking pilots, disburse allowances to thestaff, pay route navigation charges, payextra for maintenance efforts, pay over-time to many employees, etc. Air Indiasaved almost `8 crore or so on a dailybasis thus cutting the losses by half. Infact, its cash management improved. IfAir India decides to pay all its staffsalaries for the rest of their careers andstop flying altogether, they can bring thelosses down by 90 per cent or so. Theycan even save more funds by returning theleased aircraft and selling other ownedaircraft in stages by assessing the market.

Will anyone do an exercise on thenumber of consultants engaged over thelast two decades, the amounts paid tothem and the fate of their reports? It willbe interesting to find out how much mon-ey was spent on these consultants overthis period and what exactly happened totheir reports. The government often holdsthe view that in-house knowledge, expert-ise and experience are of no relevance andonly an outside consultant would be ableto recommend strategies. The consultantsdisappear after their reports are given andthey do not own any responsibility if theirrecommendations turn out to be disasters.Who were the consultants that recom-mended the merger of Air India and Indi-an Airlines and what is their responsibili-ty for the mess it has created?

The bane of the aviation sector hasalways been the over-interference of theministers in the management of the PSUsunder the ministry. They tend to micro-manage the PSUs and the managementhardly has an option to differ and a few

who resist are shown the door. I haveknown ministers who take decisions onthe uniforms of cabin crew (design,colour, etc), food to be served on board,caterers to be engaged, hotels for the crewto be selected, routes to be started or giv-en up, etc. These are not ministerialresponsibilities and they are not answer-able, if things go wrong. Ministers havegot top officials suspended, promoted afew out-of-turn, given a few others for-eign postings, etc (Incidentally, the MDwho got suspended was not a governmentofficer but a professional who spent a life-time with the company).

Day-to-day interference from theministry has ruined the airline and itswork culture. A few chief executives inthe recent past have turned out to be foot-mats of the ministers with no objectiveattitude towards the airline. The ministersalso use the company to give free passesto their friends, relatives, media people tokeep them in good humour. I am aware ofa well-known journalist who flew to JFKin First Class by getting his economy tick-et upgraded — courtesy the minister —and demanding a limousine to take him tothe hotel because he flew first class. Theground staff at JFK had to oblige since hetravelled first class — courtesy the minis-ter. I do not want to name the media peo-ple that were purchased by the mostrecent Minister by offering them freebies.Why does the media not blame the minis-ter squarely instead of having only mean-ingless debates and irrelevant articles onAir India? Why is Raja alone being tar-geted? Is it because he did not keep themedia in good humour? Poor Raja! Heknew how to extract money but did notknow how to please the media.

True, there is a great deal of criticismthat far too many aircraft were ordered inthe recent past and massive loans werecontracted. I am aware that this was donewithout any clear business plan. In fact, Iknow well the manner in which the busi-ness plans were modified to suit the pur-chase orders (number, type, manufacturer,etc) that were pre-decided. The board wasreduced to being a hand maiden of theminister in the recent past. Would some-one go into the role that the so-calledindependent directors played in the man-agement of Air India? But what is theresponsibility of those earlier Ministerswho did not acquire the aircraft in timeand modernise the fleet? Had this beendone in a planned and staggered mannerlinked to the needs, the present bunchingof orders and loss of market share wouldnot have happened at all. If commission isan offence, omission should also be anoffence.

Air India has acommitted set ofemployees excepta few at the topwhose only aim isto get favours forthemselves fromministers andother civil servantsof the ministry.The generalmotivation of mostemployees maydiffer from personto person. Butalmost all of themare deeplycommitted andloyal to thecompany.



44

COVER STORY

I saw a news item recently that theIndia business of Emirates is US$ 1.7 bil-lion and the carrier has 184 flights a weekto India. Look at the amount of transittraffic they meet from India to USA andEurope. I do not know if I rememberthese figures right. Is Air India’s Gulfbusiness anywhere close to this? Whogave them all the rights to fly to so manydifferent airports in India? After all,Dubai, Singapore, Abu Dhabi, etc. aresovereign municipalities and not even thesize of our cities. Their aircraft leave theirair space when they take off from theirbases. How do they generate so muchbusiness out of India when we cannoteven fill our aircraft? Who asked AirIndia to withdraw from routes in whichthey were well established and allowedother carriers to fly on those routes? If AirIndia found the routes unviable, how dothe others find them profitable? I amshocked to learn that Air India plans tohave a hub at Dubai. Is there any countryin the world that has a hub outside its ownborders? Strange are the ways of the gov-ernment.

It was well known at the time ofplanned disinvestment of Air India duringthe NDA period, that the Tatas were bid-ding for the same. I am aware of theviews of the conditions of the Tata groupwhen the shareholders agreement wasbeing discussed. They made two perti-nent points: 1. That the company has beendevalued thoroughly and they would atbest offer scrap value for the airline andthe government cannot expect a verylarge offer; and, 2. If they were to win thebid they would ask for protection on thebilaterals for a period of seven to 10 yearsafter which the government would be freeto allot them to other operators. It is anentirely different matter that the processwas derailed by the then government’sown ministers. But what made the gov-

ernment give away rights to foreign carri-ers and other Indian carriers? The inabili-ty of the national carrier was used as anexcuse to concede the rights to all privatecarriers. No thought was given tostrengthening Air India to enable it to useall the rights. The private sector Indianairline companies were allowed as“Scheduled Domestic Operators” in theearly Nineties. How did the governmentgive rights to them to go internationalwithout changing the definition of“Domestic Operators”?

Not many are aware of the mess thathas been created in the Airports Authorityof India. Possibly, the media would wakeup when it reaches the mess that Air Indiais presently in. DGCA is a directorate andhas no balance sheet to offer. Its effective-ness should be reflected in the safety ofthe air traffic that has not been praisewor-thy in the recent past. Would anyoneinvestigate the mess in the DGCA withfake licenses, liberal enforcement of regu-lations, etc? I was a witness to a ministertelling a newly-appointed DGCA that heshould be very strict and enforce the rulesscrupulously without any discretion sothat he gets requests for directing theDGCA to do or not to do a certain act. Itis the reality in India.

Most of the crisis has been broughtabout in the last six years through theministers but the ministers who were incharge earlier were not without blameeither. Who will bell the cat? The ministerwould nonchalantly say that all the deci-sions were approved by the Cabinet andhe was not the only decision-maker. Butnone can ask as to who misled the Cabi-net. Does the Cabinet approve everythingthat a minister from a coalition partywants without any application of mind?Unfortunately, given the current-style-ofgovernance nobody will be held responsi-ble for the mess that has been created.

Let us be practical and objective. Pri-vatisation, by itself, is not a solution. If itis to be done, nurse Air India back tohealth, stop the special treatment to exist-ing private and foreign carriers and thenhave a business plan that would be takenforward by the new owners. But please letthe government stop running the airlineby remote control.

The telecom scandal has broken out.Who will look at the aviation scandal?The loss cannot be quantified in thou-sands of crores of rupees alone. The com-plete destruction of an airline that had aninternational reputation is as much anoffence. I do not want to level allegationsthat cannot be substantiated by me on thecorruption in the sector. But those in thesector know it well. �

Most of the crisishas been broughtabout in the lastsix years throughthe ministers butthe ministers, whowere in chargeearlier were notwithout blameeither. Who willbell the cat? Theminister wouldnonchalantly saythat all thedecisions wereapproved by theCabinet and hewas not the onlydecision-maker.But none can askas to who misledthe Cabinet.


DEMANDING PAY PARITY: Air Indiapilots shouting slogans during a strike.

ww

w.ib

tim

es.c

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45

P48 P47 P48

Eurocopter unveilsthe X3 at the ParisAir Show

STELLAR DEBUTAnother royal showsoff with his chopperantics

DAREDEVIL PRINCESikorsky India Chief AJSWalia spells out thecompany's strategy

BREAKING NEW GROUND

FOCUS ON ‘COPTERS

THE DGCA HAS FINALLY ISSUED A DIRECTIVE

THAT GIVES PILOTS THE POWER TO REFUSE

TO FLY IN INCLEMENT WEATHER.

On the morning of September 2, 2009, YS Rajasekhara Reddy’s Bell 430 tookoff from Begumpet Airport, Hyderabad,and soon encountered with bad weather.

Shortly afterwards, the helicopter went missing. AirTraffic Controllers at Begumpet and Shamshabadlost contact with the chopper at 10:02 am, while itwas flying through the thick Nallamala forests.

It was nearly 24 hours later that the wreckage ofthe aircraft was found on top of Rudrakonda Hill,74 kilometres from Kurnool. Inclement weatherwas believed to be the cause of the crash. It is saidthat the flight crew never discussed the bad weather,


RESPITETO CHOPPERPILOTS, COURTESYTHE DGCA

PPRREEFFEERRRREEDD CCAARRRRIIEERR::Accidents notwith-standing, helicoptersremain the favouredmount of politicalleaders across thepolitical spectrum

Choppers august.qxd 7/29/2011 3:48 PM Page 47


FOCUS ON ’COPTERS

diversion or returning to base.Now almost two years later, in a move

that is sure to bring cheer to chopper pilots,the Directorate General of Civil Aviation(DGCA) has issued a directive that pilotswill not be prosecuted now on if they refuseto fly or undertake unscheduled landings incase of bad weather or an emergency.

According to official sources, theDGCA has instructed that "no punitiveaction would be taken" against the pilot ifthere is an unscheduled landing in case ofan emergency, like bad weather. In such asituation, the pilot should immediately landthe chopper at a "suitable place", accordingto the DGCA directive.

The DGCA move followed arecommendation by the ParliamentaryStanding Committee on Transport, Tourismand Culture that pointed out that pilotsshould be provided "adequate legalprotection to decline to fly in absence ofmandatory technical or weatherclearances". In its recent report, thecommittee headed by CPI(M) leaderSitaram Yechury also suggested that "somekind of penal provision may be consideredagainst those putting such pressure on themwithout clearances”. The Committee alsoexpressed concern over several instances offorceful chopper landings and take-offs inlow visibility, bad weather and even duringnights.

DGCA chief E K Bharat Bhushan hasasked all helicopter operators to strictlyadhere to safety parameters and follow thelaid-down procedures while flying duringelections and in hilly areas. The DGCAchief warned the operators of strict actionin case of violation of these procedures,stressing that safety was a sharedresponsibility of the operators and theregulator.

Besides these procedures, thegovernment has decided to implement aseries of measures to make helicopteroperations safer, including training chopperpilots in handling various kinds ofemergency situations with the use ofsimulators.

The government will also introduce asafety management system in line withthose in place in many countries. As part ofthis action plan, stress would be laid onanalysis of data relating to accidents (fatal)and incidents (non-fatal) andimplementation of recommendations ofinquiries into them. This was essential asrecent accidents have been caused byfactors like loss of control of the pilot overthe helicopter, ‘collision with terrain’, badweather, pilot error and maintenance, theysaid. Of the 271 helicopters in the country,209 were engaged in commercial non-scheduled operations.

� Arunachal Pradesh Chief MinisterDorjee Khandu died in a helicoptercrash near Sela Pass on April 30,2011.

� Andhra Pradesh Chief Minister YSRajasekhara Reddy's lost his life ina chopper crash on September 2,2009. The wreckage of thechopper was found a day later topof Rudrakonda Hill, 74 km fromKurnool.

� Haryana Power Minister and wellknown industrialist, O P Jindal, andState Agriculture Minister

Surendra Singh were killed whenthe chopper carrying themdeveloped a technical snag andwent down near Saharanpur inUttar Pradesh in March 2005.

� Speaker of the Lok Sabha GMCBalayogi died in the crash of a Bell206 helicopter in the WestGodavari District of AndhraPradesh in March 2002.

There are others who have had closeshaves and incredible escapes. � BJP president Rajnath Singh and

vice president Mukhtar AbbasNaqvi had a miraculous escape in2010 when they were travelling toRampur in Uttar Pradesh. Thechopper landed close to a pile ofdry grass that caught fire. The pilotimmediately took off again andlanded at a safe place.

� Former Punjab chief ministerAmarinder Singh and MinisterPratap Singh Bajwa survived onesuch chopper accident when it hitelectrical wires soon after takingoff in Gurdaspur in September2006.

CHOPPER BLUES: A spate of accidents involvingchoppers has forced the DGCA to come up witha new set of guidelines (above the accident siteof YS Rajashekhar Reddy)

UNFORTUNATE VICTIMS: (Clockwise fromtop left) GMC Balayogi, Dorjee Khandu, YSRajashekhar Reddy and OP Jindal, all died inchopper crashes.

COPTER CRASHES



FOCUS ON ’COPTERS

Juhu chopper operators have approached the MumbaiATC to improve coordination between the two ATCs

and reduce delays that are plaguing flights. This, barelysix months after helicopter operations were shifted toJuhu from Mumbai's Chhattrapati Shivaji InternationalAirport (CSIA). According to the chopper operatorsdespite helicopter corridors over Mumbai airspace,pilots sometimes wait for up to two hours at Juhu airportor at the Mahalaxmi Racecourse helipad, before gettingclearance from Mumbai ATC.

Eurocopter unveiled a series of state-of-the-art prod-ucts at the recent Paris Air Show. Among the most

anticipated of its products were the X3 hybrid demon-strator and the new EC175 helicopter.

Living up to the pre-event expectation and buzzaround it, the X3 demonstrator proved to be the 'show-stopper' of the event. The X3, which is one of thefastest choppers in the world with a top speed of 333kph, is a sight to behold. A five-blade main rotor sys-tem and two propellers on short-span fixed wings pro-vide the X3 with the best of both worlds: excellent ver-tical takeoff and landing capabilities of a helicopter andaircraft-type fast cruise speeds and maneuverability.

Eurocopter believes that its X3 hybrid concept hel-icopter can be put to best use in many ways, includinglong-distance search and rescue (SAR) missions, coast-guard duties, border patrol missions, passenger trans-port, offshore operations and inter-city shuttle services.

Another star attraction from the Eurocopter stablewas the EC175. This multi-role helicopter in the sevenmetric-ton weight category fits into Eurocopter's prod-uct range between its AS365 Dauphin and theAS332/EC225 Super Puma aircraft families. TheEC175 benefits from a mix of proven and advancedtechnologies, providing excellent performance and reli-ability. The EC175 is in fact the only 16-passenger hel-icopter in its class; fitting perfectly to the customisedrequirements of Indian operators without compromis-ing on the world-class safety and comfort standards setby Eurocopter.

EUROCOPTER’SSUPER SHOW ATPARIS

Forces ranged in battle against the Maoists in the country’shinterlands will soon be able to call upon chopper

ambulances to aid wounded comrades. The Home Ministry plansto make available a dedicated helicopter ambulance service formore than 70,000 paramilitary forces deployed in anti-Naxaloperations.

The government has decided to deploy air ambulances atthree “strategic” theatres of operations: Left wing extremism,combating insurgents in the North East and countering militantsin Jammu and Kashmir after analysing feasibility reportsprepared by the Union Home Ministry. This is yet anotherattempt to expedite response time during any medical emergency.

Reports suggest that a squad of specialist doctors andparamedical staff will also be trained and deployed on thesehelicopters to evacuate and rush troops of CRPF, BSF, ITBP,SSB and state police forces deployed in the Naxal-affected areas.Plans are afoot to either lease some choppers for the newambulance fleet or convert some aircraft from the BSF air wingfor the ambulance role.

The new service will be run by the medical wing of the HomeMinistry with the Indo-Tibetan Border Police (ITBP) acting asthe nodal agency amongst all the forces. It has been observed thatthe maximum number of sorties undertaken by helicopters inNaxal-affected states are to extricate injured personnel or patrolparties. The Home Ministry also plans to maintain five vehicularfast field support hospitals’ in the insurgency-hit areas.

JUHU CHOPPER OPERATORS

FRET AT DELAYS

CHOPPER AMBULANCES FOR ANTI-NAXAL FORCES

Continued on Page 50


FOCUS ON ’COPTERS

Q:Where do you see Sikorsky in thecontext of the Indian aviationscene today?

A:I think we are the first aviationcompany that has establisheditself in terms of supplier base as

well as joint venture and if I can take youback to 2009, we signed our agreementwith Tatas and they are now producing thecabins of the S 92, which is a 12.5-tonnemachine. And that was an iconic milestonein the history of independent Indiabecause it is the first time that besidesHAL (Hindustan Aeronautics Ltd) some-body from the private sector had got intothe aviation sector. So, we kind of startedthe ball rolling for participation in avia-tion. But we did not stop there. We nowhave a joint venture, which should be upand about in two months’ time — maybethree-four months — where we are goingto be producing close to 4000 detailedcomponents for the aviation industry.

Besides these two activities, of course,we have certain other plans in our mindsand we have drawn out a road map. In thatroad map we have decided that as we meetthe milestones in the times to come, weshould be able to produce indigenous hel-icopters by the year 2015-2016. Thatshould give you an idea as to howSikorsky places itself in the Indian contextand how we look at the Indian market. Tous, India is a huge market not only interms of sales but in terms of talent, skills,labour, environment and government poli-cies. All these make it a very viable con-sideration for us to establish ourselves as amajor player.

If the idea is to manufacture by 2016, theblueprint is obviously ready. Who are youtying up with?Yes, the blueprint is already there and weare looking at all options. It should becollaborative since we know that the

“India canbe a secondhome forSikorsky”Air Vice Marshal (Retired) ArvindWalia, Sikorsky Managing Directorfor South Asia, is a man who doesn'thide his punches. In thisfreewheeling and frank interview,he discusses the Sikorsky saga inIndia and the plans for the future.Exclusive excerpts:

48

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: H

.C.

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interview 2.qxd 7/28/2011 5:41 PM Page 2

Indian corporate sector has the tenacityand the urge to get into this kind ofactivity and we would certainly like toexploit that and we are not restrictingourselves. Well, we can consider allfactors to make India a second home forSikorsky.

And where are you likely to set up base?That again depends on the environment,the kind of facilities and the otherrequirements of any aviationmanufacturing hub. There are activitiesgoing on in Hyderabad and there are otherareas that can be considered for setting upthe other activities.

What's your own estimate about thedemand for choppers in India?Oh! There's a huge potential. The studythat we have done conveys that thecommercial market of our products isclose to about $6.7-7 billion and thedefence market is anywhere close to $14billion. With this kind of a market, youneed to be present here. It may not be far-fetched for me to state that if UnitedStates with 300 million people aspopulation has more than 11,000helicopters, we are 1.2 billion and wehave just 300 helicopters. And if you seethe area of activities for the helicopters, itis a versatile machine. You havecommunication activities; you can haveoffshore oil and gas exploration activities;you can have law and order, search andrescue, medical services, surveillance,pilgrimage, use by corporates, I mean anynumber of activities. And you do notrequire the kind of assets a fixed wingrequires for its operations.

So, there's a huge potential and thegovernment declared 2008 the year ofhelicopters. A lot of initiatives had beentaken at that point of time and we can seethose things now emerging. The peoplehave started realising the importance ofhelicopters.

Freezing the routes too will help… That's right. All the committees set up todefine the departure and arrival routes forhelicopters have done their work and I'mvery happy to state that the DGCA hasalready implemented that for Delhi andMumbai. So, there's forward thinking byeveryone in the government as well as inthe private sector to ensure that this smallindustry becomes a bigger industry.

To go back to the manufacturing plans, haveyou decided on your Indian partner?We had some dialogue with some peoplebut these are the initial dialogues.Absolutely preliminary but as I just said

we have our roadmap and we will followour roadmap and everything that we haveworked out till date, we have been able toachieve those milestones. That is how, yousee, we are progressing towards thatultimate aim. So, as we go along I'm sureyou'll be hearing a lot about Sikorsky andits activities in India.

Where are all you manufacturing bases?China, Japan,Turkey where we just got109 helicopters … We manufacture inPoland, the 70i we call it — Black HawkInternational. That is being producedthere.

Why so many manufacturing bases?Our demand is huge. Sikorsky is todaythe No. 1 helicopter manufacturer and weneed to have the capacity around theworld to meet the requirements. I think weare on the right track at having(manufacturing bases) in these areaswhere we know the markets are emergingand shall emerge. We need to positionourselves.

You will be doing both civil and militarychoppers out of India? Of course. Basically, the machines aremade and a clean machine can be usedfor commercial and defence as required.

The fittings will be done separatelythough those come under theconfiguration of completions andcustomisations. So we can customiseaccording to the role, requirement andthe demand.

Will they be done in the same place?Not necessarily. We do have variousplants at various locations within theUnited States where we do thecompletions.

Fittings for the VIP fleet or defence --where will they be done?We will, perhaps, have the Indianpartners to be with us to do those things;maybe systems integration, somecustomisations and if required, themachines can also go back to the UnitedStates for completion. Our aim would beto bring as much work within the countryas possible to meet the growing demandwithin the time and the stipulatedrequirements.

What sort of investment is one looking at?It's unthinkable. It's hundreds of millionsof dollars.

We have a $20-billion market but theinfrastructure is abysmal. There is nobackend. You can't just manufacture andbe oblivious of the other issues.Well, we have had some dialogue withsome people who are into training, be itthe simulators, be it the helicopter trainingestablishment, where the helicopters arebeing used for training the pilots. So thereis quite a bit of activity at the momentwhich is going on to meet the rotary wingrequirements at the earliest. We have beenin dialogue with some because we knowthat not only do you need to train the pilots,you also need to provide them withcontinuous and advanced training. We areaware and as we go along, we will not behesitating in bringing whatever is requiredto ensure that the quality of trainingimproves and we provide qualitativerequirements to the Indian pilots.

FOCUS ON ’COPTERS


“ Sikorsky istoday the No. 1helicopter man-ufacturer andwe need tohave thecapacity aroundthe world tomeet therequirements.

interview 2.qxd 7/28/2011 5:42 PM Page 3


FOCUS ON ’COPTERS

SIKORSKY AIRCRAFT was recently awarded the Colliertrophy for the development of the X2, which achieved a speedof 288 mph in level flight. The X2 is the fastest helicopter inthe world without external thrust.Sikorsky X2 uses a coaxial rotordesign with a pusher prop. Usingcounter-rotating main rotors, some ofthe drawbacks of high speedhelicopter flight are minimised. Thetroubles associated with retreatingblade stalls are also reduced byslowing down the main rotor speedand using the pusher propeller behindthe chopper for thrust as speeds

increase. The Sikorsky’s X2 is touted as the starting point for afresh light attack helicopter being created for the US Army’sArmed Aerial Scout programme. The military rotorcraft,

known as the S92 Raider, will retainan identical basic layout. It will alsobe quieter and is expected to carry agreater payload than present chopperswith a similar size. Sikorsky hopes tomarket the fast-flying helicopter for awide variety of uses like search-and-rescue, border patrol and the military.

For more information on theSikorsky X2 read the detailed articlein our sister publication Geopolitics.

If you thought that Prince Harry with his Apache pilotingskills was the only royal with a hunger for adrenaline, think

again. It also turns out that elder brother William is also a bitof a daredevil…this was apparent when the young princevisited Canada.

The prince who is a certified search-and-rescue chopperpilot, jumped at the chance to undergo so-called ‘waterbird’training, which is done only in Canada. Even as his wife, theDuchess of Cambridge, watched from dry land on PrinceEdward Island, Prince William landed a Sea King helicopteron water as part of a demonstration of the search and rescuemanoeuvre. The huge crowds that braved rain to see his flyingskills in Dalvay-by-the-Sea let out a cheer as the lumberinghelicopter, with Prince William at the controls, settled to agentle landing in the lake. Canada is the only country whichtrains its Sea King pilots to perform ‘waterbird’ landings andthe duke performed it for the first time.

Amid grey skies and stormy winds, Prince Williamrepeatedly brought the helicopter down in a maelstrom ofspray. He was shown various techniques, including watertaxiing and landing and taking off with one engine powereddown.

PRINCE WILLIAM’S CHOPPER ANTICS

SIKORSKY’S RECORD-SETTING X2 RAISES THE BAR

Kaman promises to auger in a new age in unmanned rotorcraftwith the K-MAX. This rotary wing cargo drone uses the

Kaman intermeshing rotor design and lacks a tail rotor. Moreoverit is capable of day and night operations. Like other drones, suchas Predator, a ground station operator can remotely fly the K-MAX through a satellite link. But what sets the K-MAX apart isthat it can be preprogrammed to lift off with multiple loads on itsfour-hook carousel, fly to remote locations and drop off loads atfour different locations. And this, without putting the life of anyhuman pilot in danger.

And it gets better, the K-MAX can haul 4,300 pound loadsupto 15,000 ft , only a Chinook helicopter can lift heavier loadsat higher altitudes. As the payload of the K-MAX is carried at theend of a long tether, the drone does not have to touch down.When it comes onto the landing area, the weight is off the hookas the sling load sets down. The hook then opens, drops the loadand the helicopter can be sent to its next location. The USMarines plan to deploy two K-MAX helicopters to Afghanistanlater this year for operational tests.

CHOPPER THAT DEFIES CONVENTION



The Bilateral Aviation SafetyAgreement (BASA) betweenIndia and the USA was recentlysigned by Dr Nasim Zaidi,Secretary, Civil Aviation and J

Randolph Babbitt, Administrator, FederalAviation Administration (FAA). Thesigning coincided with the visit of USSecretary of State Hillary Clinton toIndia. The signing took place in thepresence of senior officers from theMinistry, DGCA, AAI from the Indianside and FAA and USTDA from the USside. Incidentally, the USA has signedBASA with 24 countries.

BASA will facilitate reciprocalairworthiness certification of civilaeronautical products imported/exportedbetween the two signatory authorities.Indian standards would be comparable toglobal standards and its aeronauticalproducts would be accepted by the US.

The nascent aircraft manufacturingindustry in India would be hugelybenefitted and it would spur tradebetween the two sides. It woulddemonstrate that India has the capabilityto develop FAA certifiable aircraft

articles/appliances and would encouragethe civil aeronautical products industrywhich will eventually lead to self-sufficiency in the sector.

BASA would encourage indigenousaircraft and aeronautical productsindustry and the US acceptance of Indianproducts will help their globalacceptance. Perhaps, what is moreimportant is that it would lessen theeconomic burden imposed on the aviationindustry and operators by redundanttechnical inspections, evaluations andtesting.

The next stage in Indo-US aviationrelations will be signing theimplementation Procedures forAirworthiness (IPA) that provides forairworthiness technical cooperationbetween FAA and its counterpart civilaviation authorities. The scope of the IPAcan be enhanced from time-to-time.

INDIA TIESUP WITHUS ON

AVIATIONSAFETY

INSIDE

A I R P O R T S A U T H O R I T Y O F I N D I A

New terminal building atShillong and Bhopal airportinaugurated p52

Dr.Nasim Zaidi, Secretary, Civil Aviation (centre) with V P Agrawal, Chairman, AAI and Lee Zak, Director, USTDA and other AAI officals immediately after signing the MoU

SHILLONG ANDBHOPAL TAKE OFF

Academy to become aglobal centre of excellencein aviation training p54

INDIAN AVIATIONACADEMY LAUNCHED

AAI.qxd 7/29/2011 3:56 PM Page 39

The Civil Aviation Minister, MrVayalar Ravi, believes that“fulfilling the customers’

expectations” is the key to success in aservice-oriented responsibility likerunning airports. Addressing the first-ever conference of airport directorsorganized in Delhi on June 16, 2011, MrRavi said: “Compete with the privately-managed airports... so that someonelanding at Chennai or Kolkata airports(being modernised by the AirportsAuthority of India) can say they are asgood as or better than Terminal-3 of theDelhi airport.” Mr Ravi said thatofficials must get on the shop floor so tospeak or in other words not be office-bound but find time to connect with thepassengers: “You have to see whatproblems the passengers and all yourother customers like airlines are facingand find solutions,” he said.

The Civil Aviation Secretary, DrNasim Zaidi, also asked the airport


The new terminal building at ShillongAirport — designed in keeping withthe architecture of buildings in the

city — was inaugurated on June 25, 2011,by Mr Vayalar Ravi, Union Minister forOverseas Indian Affairs and CivilAviation, and Dr Mukul Sangma, ChiefMinister of Meghalaya. On the occasion,Dr Vincent H Pala, Union Minister ofState for Water Resources, Mr Abu TaherMondal, Minister of Transport,Meghalaya, Mr P P Shrivastav, Member,North-East Council, Mr V P Agrawal,Chairman, Airports Authority of Indiaalong with other officials of AAI werepresent. A colourful cultural programmewas organised by the College of Arts andCulture, Shillong, which made the galaceremony a momentous one.

Mr Vayalar Ravi assured the audienceof about 1000-odd that development workat the Shillong airport would be completedsoon.

On the occasion, Chief Minister DrMukul Sangma handed over the deeds of

192.253 acres of land around the airport toMr V P Agrawal. He praised the villagersfor their selfless contribution towardsdevelopment of the State. He felt proud todeclare the contribution on unique and onethat had made history not only in thecountry but also in the world.

Chairman, AAI, also urged theofficials to expedite the works such asinstallation of Instrument landingSystem (ILS) and the extension of therunway so that aircraft of A321 typecould also be operated from Shillong,which has a huge passenger potential. Heemphasised the need of air-connectivityof this beautiful and land-locked state ofMeghalaya with the rest of the countryand the world for rapid economic growthof the nation. Mr V P Agrawal,Chairman and Mr S Raheja, Member(Planning), AAI, appreciated the worksof project officials and all employees ofShillong, Airport for the completion ofthe task and the successful organisationof the inauguration ceremony.

The construction of the new terminalbuilding was undertaken by AAI at ancost of about `30 crore with a target tocomplete it within three years; but it waspossible to finish the task before the duedate owing to the commitment of theAAI officials and staff. The members ofthe AAI family are proud of thisremarkable achievement.

The new terminal building isequipped with the state-of-the-artequipment such as explosive tracedetectors, baggage X-ray machines,conveyor belts and close-circuitcameras. In addition, there are six check-in counters and a complete security-holdarea. Separate blocks have been createdfor arrival and departures along with amodern medical inspection room. Therunway of 6,000 ft will be lengthened to7,500 ft and will have a strength of PCN(Permanent Classification Number) 54to cater to operations of A321type ofaircraft. The installation of ILS onRunway 22 is already underway.


AAIupdate

A BRANDNEWTERMINALATSHILLONG

FIRST-EVER AIRPORT DIRECTORS MEET

Chairman, AAI, V P Agrawal lights the inaugural lamp at the start of the conference.

AAI.qxd 7/29/2011 3:56 PM Page 40

managers to reorient their functioning tomeet the new competitive challenges.Maintaining that `1.35 lakh crore wouldbe required over the next decade for amassive upgrade and development ofaviation infrastructure across thecountry, he said both government andprivate investment would be needed. “Infuture, there could be more than oneairport in some cities. Therefore, the AAIand airport managers have to reorienttheir functioning to meet thiscompetition,” he said.

Noting that the country wasprojected to have 400 million airtravellers and over 1,000 aircraft in thenext ten years, Dr Zaidi said the AAIhad earmarked `12,000 crore for the11th Plan period to modernise airports.The Secretary also stressed on the needto hike income from non-aeronauticalrevenues. He also said that while pricingservices at major airports wasdetermined by the Airports Economic

Regulatory Authority, in the near futureeach airport would have their ownpricing mechanism and the governmentwould lay down the standards theyshould maintain. “This would depend onthe nature of air traffic flow in eachairport,” he said, adding all airportswould have to maintain their ratings inservice standards or face “seriouspenalty clauses”. Dr Zaidi said broadpolicy parameters to this effect and a“new regime” of safety and securitywould be evolved soon.

The Secretary also asserted that thegovernment would keep a close watchon the health of the AAI, which wouldhave to raise enough resources to meetthe growing demand for large-scale modernisation of airports,communication, navigation and airtraffic management systems.

AAI Chairman V P Agrawal saidairport managers in India would have tocompete with the best in the world as the

best airports were situated in the Asia-Pacific region. While huge investmentswould be made over the next few yearsto improve and expand aviationinfrastructure, he said that the airportdirectors would have to learn to markettheir airports to customers as was donethe world over. Mr Agrawal also askedthe AAI to devise innovative methods tomaintain the plush new terminals whichhave come up in various states in therecent past.

The conference, an initiative of AAIChairman, Mr V P Agrawal was aimedto focus attention on the various issuesconfronting the AAI-run and managedairports across the country. “We are oneteam and we believe it will help us tolearn from each other’s experience,outline our best practices andcollectively find solutions to the issuesthat come up from to time,” said MrAgrawal explaining his decision to holdthe conference.


Mr Vayalar Ravi, Union Minister ofOverseas Indian Affairs and CivilAviation, inaugurated the New

Integrated Terminal Building at RajaBhoj Airport, Bhopal, on June 28, 2011.Mr Rameshwar Thakur, Governor ofMadhya Pradesh, was the Chief Guestand Mr Shivraj Singh Chouhan, ChiefMinister, Madhya Pradesh, presided overthe function. Mr Kamal Nath, UnionMinister for Urban Development, andMr Kanti Lal Bhuria, Union Minister forTribal Affairs, were guests of honour.

Built at a cost of `135 crore, the newIntegrated Terminal Building has anaesthetic structural shape in a curvilinearform. With its total area of 26936 sq mand a provision for future expansion, the

terminal is sleek and artistic andencompasses all modern facilities. Thesalient features of the building are 14check-in counters, 10 immigrationcounters, four Customs counters, sixsecurity check X-ray machines, twoescalators, enhanced parking facilities

for 700 cars and 20 buses and apron. Thestate-of-the-art building has all modernuser-friendly amenities such as childcareroom, smoking room, etc. The apron hasbeen constructed to accommodate 13aircraft. The runway has been extendedto 9,000 ft. to facilitate operation ofbigger aircraft.

Speaking on the occasion, MrVayalar Ravi mentioned that the newIntegrated Terminal Building with apeak hour handling capacity of 700 paxwas being inaugurated to mark 100years of civil aviation in the country.This would help enhance theconnectivity within the state as wellwith other parts of the country anddestinations abroad. It would also helpboost economic activity. The Ministeralso mentioned that to provide a push tothe development of infrastructure, AAIhad embarked upon a plan to developairports across the country. In fact, healso said that Indore was also gettingready to be inaugurated soon.

Earlier, welcoming the dignitariesMr V P Agrawal, Chairman, AirportsAuthority of India, mentioned thesalient features of the new facility andthanked the state government formaking available the land for thedevelopment of the airport. He furtherelaborated AAI's plans for developmentof other airports in the state i.e. Indore,Jabalpur and Khajuraho.

The newly inaugurated facilitybecame operational from July 1, 2011.


AAIupdate

BHOPAL’SRAJA BHOJAIRPORT OPENS AMIDSTFANFARE

Dignitaries at the inauguration of Bhopal’s Raja Bhoj Airport New Integrated Terminal Building

AAI.qxd 7/29/2011 3:56 PM Page 41



AAIupdate

The recent changes in theaviation environment haveresulted in greater business

complexities, as far as thebusiness is concerned. In such ascenario, effective and constructiveinteraction between individuals andgroups has been found useful for theoverall development and growth of anorganisation. To meet this challengingtask, Indian Aviation Academy has beenset up under the aegis of National Instituteof Aviation Management and ResearchSociety (an autonomous body) withAirports Authority of India (AAI),Director General of Civil Aviation andBureau of Civil Aviation (BCAS), asstakeholders to become a global centre ofexcellence in aviation training andresearch-related activities.

NIAMAR was registered as a societyunder the Society Registration Act XXI of1860 (vide Registration No.S/RS.SW/0043/2010) on July 22, 2010,pursuant to the decision taken at the 136thBoard Meeting of AAI. Today, the Indian

Aviation Academy (erstwhileNational Institute of AviationManagement and Research —NIAMAR), has turned into apremier training institute

conducting courses in all technical andnon-technical disciplines of AirportManagement. Non-scheduledprogrammes are also organised to cater tothe needs of various functionaldepartments of AAI.

ICAO FELLOW PROGRAMMESDuring 2010-2011, ICAO — IndiaFellowship Programmes for DevelopingCountries were held. Under an MoUsigned between AAI and ICAO, twoprogrammes were conducted fromDecember 6 to 10, 2010, and December13 to 17, 2010, respectively.

Apart from AAI officials, sixfellowships in each of above trainingprorammes were offered to participatefrom developing countries such asBangladesh, Nigeria, Zimbabwe,Mauritius, Saint Lucia, etc.

The Indian Aviation Academy will beconducting two ICAO-India Fellowshipprogrammes for developing countries inJuly and August 2011.

In 2010-2011, the academy hadconducted 96 training programmes where2177 persons were trained. A dozenprogrammes on Dangerous GoodsRegulations (Basic) and (Refresher)benefitting 153 participants were held.Similarly six training programmes wereconducted by the academy on ab initiocourse for Airport Managers, ICAO-STPCourse on Bird Hazard ControlManagement Part-I & II, AirsideOperations Management & InductionCourse for Airport Directors/AirportControllers.

A common training calendar of theIndian Aviation Academy for the year2011-12 containing details of trainingprogrammes to be conducted by thestakeholders i.e. AAI, DGCA and BCAShas been brought out. The list has alsobeen uploaded on the website of AAI:www.aai.aero.

INDIAN AVIATION ACADEMY AIMS FOR EXCELLENCE

A-SMGCS brings the movement areaof the airports under electronicscanning to provide the ATCO with

details of vehicle and aircraft movementon the airside of the airport for bettersurveillance, control, routing andcontrol of airside ground movements.

A typical A-SMGCS includesSurface Movement Radar (SMR)Sensor, Multilateration (MLAT)Sensors, vehicle transponders calledsquids and a Central Processing System(CPS).

MLAT is a multilateration sensorthat receives positional data of vehiclesfitted with vehicle transponders in themanoeuvring area and presents anintegrated display of the airside of theairport to the tower controller withaircraft/vehicle identification and their

location through the CPS. In an A-SMGCS environment, all vehicles likefire tenders, jeeps, etc. need to be fittedwith transponders. However, SMRassists MLAT by providing data on thepresence of vehicles and aircraft that arenot fitted with transponders.The salient features of A-SMGCS are: � The A-SMGCS provides a display to

controllers with the uninterruptedidentification of all suitably-equipped aircraft and vehicles on themanoeuvring area.

� In conditions of restricted orreduced visibility, the benefits of thesystem become more apparent,allowing the controller to becompletely sure of the position ofaircraft and vehicles.

� In addition, the system enhances

safety, alerting the controller bydetecting potential conflicts on therunway.

� The A-SMGCS uses multilaterationtechnology to provide accuratesurveillance and identification of allaircraft and transponder-equippedvehicles on the airport surface whilethe Surface Movement Radar (SMR)usually assists the multilateration(MLAT) system by detecting anynon-transponder-equipped aircraftor vehicle.

� Range of SMR from 0 to 5 NM,Height from 0 AGL to FL030,Azimuth 360°.

The key benefits of the system are: �� Reduction in airside accidents �� Reduced runway incursions �� Reduction in taxi-time �� Increase in throughput �� Reduction in weather delay, and �� Improved situational awareness in

all- weather conditions In Chennai, two surface movementradars and 13 MLAT sensors areinstalled at strategic locations. 40vehicles on the airside are fitted withvehicle transponders and the display ofthe A-SMGCS system is provided to theTower Controller. The A-SMGCS is apioneer project installed in Chennaiawaiting DGCA clearance forcommissioning.

AAI.qxd 7/29/2011 3:56 PM Page 42

CRUISING HEIGHTS

THE DIAMOND CAPITAL OF THE WORLD AND AN ESTABLISHED INDUSTRIAL POWERHOUSE OF THE COUNTRY, SURAT HAS BEEN

DEMANDING AN AIR CARGO TERMINAL FOR A LONG TIME

62

LOGISTICS

MARKETS OF

THE WORLD

AUGUST 2011

A I R C A R G O & L O G I S T I C S

TOP 10

SURATMissing cargo badly

60 64 66¨LOGISTICS IS NO SLEEPING MATTERSIESTA DEVELOPS

LOGISTICS EXPERTISE

FOR NICHE PERISHABLES ¨CATHAY PACIFIC RAMPS UPINDIA OPERATIONS GET

A BOOST WITH HK-DELHI-

BENGALURU SERVICE¨DOMESTIC CARGO BOOM?BUT HOME-GROWN

CARGO CARRIERS

FIND IT TOUGH

cargo cover august.qxd 7/29/2011 3:57 PM Page 1

56 CRUISING HEIGHTS August 2011

A CALL by the Director General of the

World Trade Organisation (WTO) to include

trade facilitation in a new package of

multilateral trade negotiations has won the

backing of The International Air Cargo

Association (TIACA), which has said that

the move would not only benefit the air

cargo industry but also the world economy.

In his statement to an informal Trade

Negotiations Committee meeting some time

ago, WTO Director General Pascal Lamy

described an “LDC (least developed

countries) Plus” package that could include

trade facilitation as well as certain other

measures as part of the package of

agreements that negotiators were seeking to

conclude in time for a ministerial

conference this December.

TIACA strongly supported the

inclusion of trade facilitation in the

December package. Modern,

efficient customs procedures are

critical for international airfreight

shipments, and TIACA has long

supported them, as they are

essential if the air cargo sector is to

capitalise on its inherent

advantage of speed. Furthermore,

trade facilitation can promote

economic growth and aviation is a

key facilitator of international

trade, allowing small and medium-

sized businesses to compete

internationally, a

spokesman said.

Trade facilitation call gets TIACA nod

“Logistics is such a

fantastic industry to

work in, and I feel it is

particularly suited to

women, as there is

often the need to jug-

gle lots of information

and tasks at once —

it's a cliché I know,

but women do seem

to be great at this.

Language skills are

often a bonus too,

which is another area

where women tend to

perform well.”

� Ruth WaringFounder, Women in Logistics.

India-Africa trade on the up

TRENDSContainer for thefutureTHE FUTURE belongs to

“Unit Load Devices” (ULD)

made of composite materials

that are up to 20 per cent

lighter than the boxes used

now. Less weight means

lower kerosene

consumption and lower

CO2 emissions.

Last year, Jettainer started a

trial which till then was

unique for the industry.The

company arranged for a total

of 1,000 revolutionary

lightweight containers from

four different manufacturers

to be tested for their

everyday suitability on

120,000 test runs on

Lufthansa flights. For the new

generation of containers, the

manufacturers made use of

fibreglass, kevlar fibre or the

synthetic material Dyneema.

After the trials in the

everyday operations, the new

containers were subjected to

a six-month material test at

the “Süddeutsche

Kunststoffzentrum

Würzburg”.

The Kunststoffzentrum

Würzburg investigated the

effects of UV light or

saltwater on the new

composite materials and

simultaneously checked the

expected service lives — the

present aluminium

containers last for 10 years

— of the revolutionary

container construction.

The test result is a

confirmation of the new

material.The AKE standard

container, in which suitcases

of passengers are

transported on passenger

flights weighs 82 kilograms

when it is empty.The new

one weighs between 65 and

69 kilograms.A Boeing 777

passenger aircraft, for

example, has space for 32

AKE containers on the lower

deck.With a saving per flight

of around 15 kilos per empty

container would mean a

saving per flight of around

half a tonne.

INDIA-AFRICA trade relationship has seen considerable

growth over the last few years.The government has pushed it

further: Prime Minister Dr Manmohan Singh announced a

financial assistance of $5.7 billion for a wide range of

initiatives ranging from capacity-building and human resource

development to investment in Information, Communication

and Technology (ICT).To add to that private Indian investment

in Africa is providing the relationship more muscle.

Keeping pace with these business and other investments,

cargo carriage between India and the African continent has

increased substantially over the last few years.According to

Exim Bank's Chairman and Managing Director T C A

Ranganathan, India-Africa trade had gone up seven-fold in the

last seven years. Last year, for example, the trade went up to $

45 billion.The forecast is that the figure could go up to $ 70

billion by 2015 with air cargo and ocean freight volumes

expected to grow at over nine per cent annually.

Gone are the days when most of the cargo went to South

Africa, Kenya and Uganda.Today, air cargo has new

destinations in central and western Africa. In fact, India has

been exporting approximately 6,000 tonnes of goods by air to

the African continent every month.

It is no wonder then that airlines like Emirates have been

pushing forward to strengthen operations to destinations in

Africa. Ram Menen, Emirates' Divisional Senior Vice President

Cargo, pointed out that there was potential to increase cargo

capacity between Asia and Africa.The major reasons for that

are the Indian and Chinese investments in various projects in

Africa.According to Menen, trade between India and Africa

had gone up four-fold in the last five years. However, the

impediments to air cargo growth are many: while cargo

facilities need to be expanded there is also a necessity to

move ahead in communications technology, etc.

LAST IN/FIRST OUT

Last in first out.qxd 7/28/2011 5:13 PM Page 2

CARGO


One more chapter in the100 per cent screeningsaga started with the

US Transport SecurityAdministration (TSA) plan-ning to prepone the deadlinefor maindeck capacity from2013 to the end of this year.The aim is to bring it in con-sonance with the 100 per centrule for belly cargo screeningwhich was brought forward toend-2011.

The move has sent air-lines, freight forwarders andother stakeholders in the aircargo sector up in arms.During its recent meet inDhaka, the Federation of AsiaPacific Aircargo Associations(FAPAA), the reactions thatemerged to the TSA’s proposalto fast forward the 100 percent screening mandate wereall negative. FAPAA’s securityadvisor David Fielder men-tioned that he had been givento understand that the TSAwas seriously interested infast-tracking the screeningdeadline. That, he said, wouldmean all air cargo globallygoing into the US would haveto be screened. “They hadwanted to do all-cargo by2013, but there is a strongthrust to bring that forwardto 2011. Personally I don’tthink that will ever happenthis year. In two years time?Maybe.”

Fielder has his reasons.He is a member of manyglobal security bodies and isconvinced that the TSA willnever be able to achieve 100

per cent screening on-sitesimply because freighter ton-nages are more belly cargo in,for example, the 777s.

Nevertheless, the TSA ismoving ahead with its plans.The rush to bring the dead-line to the end of this yearand include freighters wasprompted by the discovery ofbombs planted on FedEx andUPS flights some time ago.

According to DougBrittin, General Manager, AirCargo of the TSA, the planswere yet to become law butwould be in the near future.The TSA proposes to startscreening freighters flying outof US airports and later moveto ensure that inbound airfreight shipments arescreened as well. Eventually,all air freight meant for theUS would have to undergothe thorough screeningprocess before entering anyairport in the USA.

Reports from around theworld indicate that freighteroperators are getting ready.Nick Rhodes, Cathay Pacific’sDirector and GeneralManager of cargo was quotedas saying that the carrier was“working hard to secure thelogistics chain in Asia. Thismeans working with for-warders and ground handlersalike to screen and secure allcargo before it departs to theUS”.

Perhaps, more importantis the fact that the 100 percent screening regime wouldentail delays — a fact that car-

riers would not put up with.In addition, while trans-shipped cargo would causeserious problems at Dubai,Singapore or Hong Kong,there would be no such delaysat Indian airports. Cargoshipped out from Indianinternational airports hasbeen going through the 100per cent screening procedurefor quite some time now.

However, before the dead-line is brought forward to theend of this year, the TSA wouldhave to get its act together.That would require validationand certification of the nationalair cargo security programmesfrom around the globe that theUS authorities require. Thewhole process is moving at aslow pace because of disagree-ments over standards. Over thelast few months, it is importantto note, the TSA has been readyto sit down and talk with theindustry stakeholders to findways to sort out the problems.

At the recent TIACA (TheInternational Air CargoAssociation) summit inBangkok, a number of mem-bers — among who were air-line representatives andmembers from the freightforwarding industry —doubts were expressed thatthe global supply chainwould face disruption if theTSA enforced the proposeddeadline of December 31,2011 for 100 per cent screen-ing of all internationalinbound cargo on passengeraircraft.

The subject dominatedthe summit in Bangkok withstrong views expressed byboth panelists and delegates.It incorporated an updatefrom Doug Brittin and stim-ulated a lengthy debateinvolving industry expertsfrom Asia and the UnitedStates. Neel Shah, SeniorVice President and ChiefCargo Officer for DeltaAirlines and a TIACA BoardMember, voiced his concernover the lack of progress incertifying foreign country aircargo security programmes. Hehad commented: “Unless TSAand, more broadly speaking, theentire US government focusesthe necessary resources onreviewing the process and time-line by which foreign securityprograms are validated andplaced into the TSA’s NationalCargo Security Program (NCSP),we will face some significant dis-ruptions to the global supplychain. It’s critical that we getmore foreign programs underreview and certified into theNCSP in the next few months —especially if TSA is considering anaccelerated deadline for 100per cent inbound screening.”

Michael Steen, TIACAChairman, said theAssociation had received“strong feedback from ourmembers, not just in Asiabut globally, that the poten-tial December 31, 2011deadline and the slowprogress on foreign pro-gramme certification arecritical issues.” �

The move to institute 100 per cent screening of belly cargo and freighters by the US

Transport Security Administration by December 31, 2011, has not been welcomed by

the industry. What most industry stakeholders are upset about is the rush to bring for-

ward the screening programme that was officially planned to begin in 2013. A look at

the challenges on the road to 100 per cent screening.

100 per cent screening?

Yes, but…

57

Surat Cargo Page 60-61.qxd 7/28/2011 5:10 PM Page 3

CARGO

Surat cries out for cargo facilities

If there is one city in India that justifiably needs air cargo facilities, it is thediamond capital of the world—Surat. While work is on to upgrade the facilitiesand turn the airport into an international one, the paucity of regular flights,reports Tirthankar Ghosh, could put brakes on the cargo terminal plan.

The recent blasts in the

diamond district of

Mumbai brought home to

the Surtis — the residents of

Surat in Gujarat — that it is

about time that their city has

an airport with all the bells

and whistles of a top-of-the-

line airport. Witness the

facts. Eight of every ten

diamonds sold in the world

are cut and polished in Surat

city. The city is India's top-

production centre for

synthetic textiles; next door

is Hazira, a deep-water LNG

terminal and multi-cargo

port. To top it all, Hazira has

some of the top industrial

corporations of the country—

Reliance, Essar, Larsen and

Toubro, Shell, and the

government-owned Oil and

Natural Gas Corporation

Ltd, among many others.

Among the top few

Indian cities for investments,

Surat with one of the highest

GDP growth rates — at 11.5

per cent (according to 2008

figures)— attracts a large

number of start-ups. All

these ingredients make Surat

an ideal location for an

international airport.

The Surat airport story

has been a long and painful

one. In fact, according to

locals, the city has been

waiting for around two

decades for a proper airport.

Till 2007, the city did not

have a functioning airport

and it was only in May that

year that the airport got

some kind of respectability

with the regular Indian

Airlines’ Surat-Delhi flight.

Incidentally, work to

enhance the airport began

way back in 2003 but the

pace was painfully slow. In

desperation, the locals sent

more than 5,000 postcards

to the Prime Minister and

the then Civil Aviation

Minister Praful Patel in

Decmber 2006. Things

moved faster after that and

the Airports Authority of

India (AAI), which was

handling the construction of

the new terminal, opened it

for use on February 27,

2009. Surat hopes to get a

full-fledged international

airport by June 2012 that is

under construction at

Magdalla-Dumas. As for

flights from the city today,

the number is hardly worth

talking about. There is an Air

India flight to Delhi. For

some time it was a daily but

operations were reduced to

four times a week and at the

time of writing, it is six days

a week, according to Air

India website. Kingfisher too

had started services between

TOWARDS STRONG GROWTH: Surat Airport holds tremendous potential for cargo business due to its strategic location.

58 CRUISING HEIGHTS August 2011

Surat Cargo.qxd 7/29/2011 2:34 PM Page 2

Surat, Ahmedabad and Jaipur

but discontinued it.

It is not that there are no

flyers. It is estimated that

around 5000-odd diamond

merchants and corporate

honchos take a flight out to

Mumbai every month from the

city. A newspaper report

mentioned that around 12,000

businesspersons travel in and

out of Surat every day. Most of

those, who are from Mumbai,

take the 300-km road journey.

According to industry pundits,

the diamond and textile two

industries can look at growths

of 20 per cent every year if

there is a Surat-Mumbai

service.

The diamond industry has

been demanding secure cargo

facilities since it is faster and

easier to ship diamonds by air

than send them by couriers

and road transport to

Mumbai. Other than the

diamond merchants, the

Southern Gujarat Chamber of

Commerce and Industry

(SGCCI) has been lobbying for

a fully functional cargo

terminal at Surat. Sometime

ago, logistics player Gujarat

State Export Corporation

Limited (GSECL), evinced

interest in setting up an air

cargo complex at Surat Airport

— the corporation runs a

complex at Ahmedabad

airport — and even sent a

proposal to the AAI in October

2010 after it carried out a

feasibility study for the cargo

complex. SGCCI is convinced

that the cargo terminal would

be able to attract business of

Rs 1,000 crore from the first

year. To begin with, the list of

perishable goods -- fruits,

flowers, agro products and

seafood -- from the south

Gujarat region that is

exported now has to go by road

to Mumbai.

In September, 2010, the

Associated Chamber of

Commerce (ASSOCHAM)

made a demand to the Civil

Aviation Minister and the

Gujarat Chief Minister to set up

a completely developed airport

and a cargo hub in Surat. The

move, said the Chamber would

attract Foreign Direct

Investments (FDI) in large

amounts. The diamond

industry apart, Surat's textile

sector had the potential to

attract large investments. The

industry employs around

700,000 and accounts for 18

per cent of overall export of

man-made fibres and 40 per

cent of the production of man-

made fabric in India.

The government too, has

realised the potential of Surat.

The AAI carried out the

groundwork and agreed to set

up a cargo facility but only after

the city starts getting more

flights to more cities. Even

today, two years after the new

terminal opened, travelling by

air from Surat to Mumbai can

be a nightmare -- often taking

more than 14 hours. There is

the Air India flight to Delhi and

it is from the capital that

passengers have to make their

way to Mumbai.

Work on the airport's

expansion plans by the AAI —

setting up a cargo terminal and

a maintenance hub — almost

came to a standstill in August

last year. It was reported that

the AAI had taken the decision

to go slow on the work in the

wake of the passenger traffic

figures from the airport. The

number, obviously, was low,

thanks to the only flight from

the city. At that time, Pramod

Chaudhary, President, South

Gujarat Textile Processors’

Export Association, had been

quoted, “This is a case of

neglect towards our city. If they

(the AAI) announce the plan,

major players will jump to grab

the offer and conquer the

diamond city. They know the

capacity and actual business

that transpires from here.

Forget passenger traffic, only

cargo business from city will be

sufficient to run the show.”

Two months later, a two-

member AAI team visited the

airport and the city to find out

the cargo potential. The two left

convinced that a cargo terminal

would be able to justify its

existence with the high tonnage

of imports and exports. The

AAI believes that Surat could

have a cargo terminal for 50

aircraft. However, without

proper air connectivity, the

huge investments for a cargo

terminal would be useless.

Industry experts are certain

that with more flights and

better infrastructure, the

airport could shape up as a

major cargo station after

Mumbai. For the present, the

airport can handle four mid-

size cargo planes while space

for two more can be created.

A meeting of air carrier

operators has been planned in

September and the SGCCI

hopes that things will work out.

The Chamber has demanded a

minimum of eight flights

connecting major cities from

Surat every day. Along with the

domestic flights, Surtis have

been demanding direct flights

to Antwerp, Tel Aviv, New York

and Johannesburg. The SGCCI

is determined to bring the

cargo terminal to the city. The

city’s businesses were

apparently losing more than

`700 crore per annum.

It may be worthwhile to

mention that early last year,

the Consul General of Israel in

Mumbai, Orna Sagiv had

visited Surat and pointed out

that the city with its more than

`50,000 crore diamond

industry and `30,000 crore

textile industry held great

potential. She was quoted:

“Air cargo lines of our country

do business worldwide and we

see enormous possibilities in

the state. Our cargo operators

would find a large market here

as the region has huge

potential.” �


BIG AMBITION: Surat is poised to become business hub of India owing to its vast diamond and textile industry.

Surat Cargo.qxd 7/29/2011 2:34 PM Page 3

India’s air cargo seems tobe in the throes of astrange crisis. While, on

one hand, outfits such as CaptG R Gopinath’s Deccan 360,Quikjet Cargo Airlines and theCapt Mukut Pathak-headedAryan Cargo Express seem tobe floundering around, despitereports about the boomingdomestic market, internation-al majors have launched ini-tiatives to cash in on theboom. Figures from theCentre for Asia PacificAviation (CAPA) point out

that cargo traffic in the coun-try grew 21.3 per cent in thefirst 11 months of fiscal 2010-11. In a 2011 report, CAPAmentioned: “domestic vol-umes were up 25.3 per centand international volumes19.2 per cent.”

The domestic outfits havebeen facing liquidit y prob-lems. Deccan 360, for exam-ple, has seen the exodus of itstop executives. The carrier hasbeen forced to return the twoAirbus freighters it had leased.Today, it has only two turbo-

prop ATR-72-202s. To top itall, Mukesh Ambani’s RelianceIndustries Ltd that had sunkin funds in Deccan 360 inApril 2010 has all but askedfor its investments back.

Deccan’s chief, Capt G RGopinath is optimistic aboutresumption of services in thenext few months and isreported to have said that thecarrier was acquiring addi-tional aircraft in addition tothe ones it had purchasedsome time ago.

Quikjet too is facing prob-

lems. On the one hand, therewere reports that some inter-national promoters — two ofthem being FedEx and TNT —had got together to breathe lifeinto the home-grown cargoairline and, on the other, theDirector General of CivilAviation (DGCA) has decreedthat Quikjet cannot fly. In amove that has put the brakeson the start-up, DGCA E KBharat Bhushan has suspend-ed Quikjet’s licence that hadbeen granted four years ago.The airline had, in fact, been

Home birds find the going tough

FedEx and TNT are ramping up services from India but domestic start-ups arehaving a hard time. While the main problem is lack of funds, there are otherstoo, reports Tirthankar Ghosh.

CARGO


JUMPING ON THE BANDWAGON: (L-R) Michael J Drake, Regional MD, TNT Express Asia Pacific and Abhik Mitra, MD, TNT India Pvt Ltd, in aninteraction with the media during the launch of the dedicated B767 freighter service between India and Europe.


taking extensions every yearbut when it sought one for thefifth time, the ministry’s air-craft acquisition committeerefused. A ministry document,according to business dailyMint pointed out: “The com-mittee did not approve theproposal.” It is reported thatQuikjet has requested theministry committee for areview. However, if the appealis declined, the licence will berevoked. It is only after theAviation Ministry grants a no-objection certificate for an air-line to start operations thatthe DGCA gives the airline alicence to fly and that too ifthe technical parameters are met.

Like Deccan 360, Quikjethas not given up hope. One ofQuikjet’s directors and AFLpromoter Cyrus Guzder wascontacted by Mint. In a textmessage from Germany, hesaid that the company was“still in dialogue with the min-istry as we believe that all thefacts of our case may not havebeen fully considered. We arehopeful that after all factshave been reviewed, the min-istry will appreciate that weare in advanced state of pre-paredness and we will be ableto progress matters further.” If and when it is allowed to fly,Quikjet could take the help ofTNT and FedEx to start itsservices. In its first avatar, thecarrier had among its threepromoters AFL. AFL’stakeover by FedEx happenedsometime ago. However, it isnot yet known whether thatacquisition included AFL’sshare in Quikjet.

However, the internation-al operators seem to be doingwell. Recently, TNT started adedicated five-times-a-weekfreighter service with B 767sbetween New Delhi and TNT’sEuropean air hub in Belgium,with a stopover in Dubai onthe way back to India. Thenew service enables TNTExpress customers to enjoyfaster transit times, as well asimproved control and visibilityover shipments movingbetween India and Europe.

The new B767 freighterhas a weekly capacity of 210tonnes. The introduction of

the India-Europe service ispart of TNT’s plan to expandits leadership position onAsia-Europe routes. SaidAbhik Mitra, ManagingDirector of TNT India, “Theaddition of a dedicated TNTfreighter from India willenable our customers tobecome even more competi-tive due to faster factory-to-market lead times andimproved efficiency. With thefrequency of our service, it willnow take just one day for ship-ments to reach Europe fromNew Delhi.”

FedEx too, started regularservices from Delhi with aBoeing 777F that were in addi-tion to its regular flights fromBengaluru and Mumbai. To add to that, it has beenexpanding its domestic services.

All this has been wel-comed by stakeholders in theair cargo community. To beginwith, the freighters have giventhem the capacity to take largeconsignments; no longer dothey have to depend on bellyspace in passenger carriers.Additionally, dedicated cargoplanes mean economical rates,despite the shooting fuel costs. What then is the problem withstart-ups?

According to a recentreport prepared by KPMG forthe Associated Chambers ofCommerce and Industry ofIndia, in financial year 2011,the total tonnage of cargo han-dled in India was around 2.33

mn MT of which nearly one-third was international cargothat was, incidentally, lessthan that handled by leadinginternational airports likeHong Kong, Shanghai,Incheon, Anchorage or Paris.The report points out to thesignificant opportunity thatlies ahead if the country getsits “infrastructure, processesand policies in place”.

Analysing the factors forthe missed opportunities, thereport lists out the key chal-lenges facing the cargo sector.Unlike everyone pointing fin-gers at infrastructure, thereport lists the first as the“mindset issue”. It says thatwith passenger traffic attract-ing the maximum focus in theIndian aviation sector, cargohas been “a bit relegated tothe background”. The aircargo sector would do well ifmore attention is paid to keyexport items like agri-produce,meat, flowers, pharma andtextile items.

The second challengedetailed in the report is infra-structure. Poor cargo handlinginfrastructure at airports acrossthe country has been leading tospoilage, pilferage andincreased turnaround times forthe cargo carriers. The thirdimportant factor is dwell time.The time for import and exportcargo at Indian airports is threeto five days as compared to anaverage of only 6 to 12 hours atother leading internationalairports. The report points out

that the reduction in dwelltime, cost and faster Customsclearance and delivery ofcargo would be beneficial forthe industry.

The report forecasts thatair cargo would face competi-tion from other modes ofcargo carriage and the majorreasons for that is theimprovement of highways andthe proposed plan of buildingdedicated freight corridorscriss-crossing the length andbreadth of the country. As faras domestic cargo is con-cerned, the airport manage-ments as well as the ministriesconcerned would have to lookat enhancing the infrastruc-ture, process and handlingcosts.

Air cargo stakeholdershave often pointed out themanner in which the Customsdepartment has been func-tioning and the report saysthat there is not only need fora review of the Customs clear-ance procedures but also thereis need to identify the ways inwhich processing can be has-tened without compromisingthe safety aspect.

Another aspect that hasbeen highlighted is acquisi-tion of land near major air-ports to expand cargo-han-dling capacity. Indeed,acquisition of land is a cum-bersome process in Indiaand with volumes set toincrease in the coming years,the government has to findways to make it easy. �


PAN-INDIA PRESENCE: (R-L) Kenneth Koval, FedEx Vice President Operations, India and Rakesh Shalia, MD - Marketing Middle East, Indian subcontinent & Africa with the newly introduced B777F aircraft in New Delhi.



CARGO

62

How important areemerging markets inthe global supply

chain? One of the world’sleading providers of expertresearch and analysis dedi-cated to the global logisticsindustry, TransportIntelligence (TI) has com-pared 39 countries in itsannual ranking of the top-emerging markets in globallogistics. According to JohnManners-Bell, ChiefExecutive Officer ofTransport Intelligence: “It isclear that emerging marketsare playing an increasinglyimportant role in global sup-ply chain strategies as manu-facturers look to the nextwave of low-cost productionlocations. However, investorsneed to be cognizant of thespecific challenges whichexist in each market as wellas the opportunities. Ourindex enables companies todifferentiate between thosemarkets which offer immedi-ate potential and those whichwill take much longer todevelop.”

The first country amongthe emerging logistics mar-kets is China. Thanks to itslarge economy, China likelast year, continued to be atthe top. According toTransport Intelligence, thetop factor that has helpedChina is the country’s con-nectivity to global shippingnetworks. The governmenttoo has helped with infra-structure. The value ofChina’s logistics industry isexpected to reach $20.9 tril-lion by the end of 2013,growing at a CAGR of

approximately nine per centover the next couple of years. India is second on the list.TI’s report pointed out thatthe market for third partylogistics in India will reacharound $4.6 billion by 2013,growing at a CAGR of rough-ly 26 per cent over the nextfew years. Most of the actionwill be brought in by multi-national companies in theautomotive and IT indus-tries. TI mentioned thatdomestic companies too havestarted to outsource theirbasic supply chain opera-tions.

Brazil is the third on thelist. Thanks to the country’sgrowing economy, manufac-turers and retailers havestarted outsourcing logisticsactivities. Result: air cargotonnages have gone up by 7.6per cent last year whileseafreight too has increased.But even so Brazil’s airportslack cargo infrastructure andthat is hampering growth.

Another country that hasperformed exceedingly wellis Indonesia. In fact, it isalmost at par with Brazil.According to TransportIntelligence, the connectivityof Indonesia to global tradelanes had captured the atten-tion of foreign investors,even with concerns aboutsecurity. Its total trade inreal terms grew by 16 percent last year after a contrac-tion of 12 per cent in 2009.As for air freight, Tri-MG hasplanned to operate 20 weeklyscheduled 732-200 freighterflights between Singaporeand Indonesia and evenGaruda Indonesia has re-

established its foothold inthe European air cargo mar-ket after previously beingbanned on safety issues.

Russia is in the top five,according to TransportIntelligence. Road freight hasgone up by 25.3 per centfrom last year after thedecline of 24 per cent in2009. Though the chances ofgrowth are many, but goodroads are hard to come by inthe country. Rail and ship-ping, however, have not donetoo well.

The top climber in thisyear’s top ten is SaudiArabia. The country will dowell now that six ‘economiccities’ to replicate the successof Dubai are being devel-oped. The largest of thesewill be the King AbdullahEconomic City, which com-prises six key components —a seaport, an industrial zone,a central business district, aresort district, an education-al zone and residential com-munities. Once completedthe economic city will be ahub for at least 2700 manu-facturing companies and the13.8 square kilometre port isestimated to emerge as oneof the world’s top five largestindustrial ports. This willprepare the kingdom for thegrowth of its logistics indus-try, with predictions by Frost& Sullivan that the marketwill earn revenues of $20.54billion in 2015, compared to$13.78 billion in 2010.

Mexico’s air cargo sectorhas seen a growth of 20.5per cent in the last year. Itsport also saw growth of 18.2per cent. Today, the

growth has strengthened theposition of Mexico as thegateway into the emergingeconomies of Latin America.But there is a strong beliefthat with the US economynot doing well in 2011, therepercussions will be felt inMexico too.

Turkey is No 8 on thelist. The country’s proximityto Europe has made it animportant destination forforeign investors. It is esti-mated that Turkey’s aircargo volumes will grow by7.2 per cent, road freight by3.1 per cent and rail by 4.4per cent.

The last two positionsare held by the UAE andChile. The UAE has gainedin stature and has becomean important gateway tomember countries of theGulf Cooperation Council, aswell as an important transithub for goods between Asiaand Europe/Africa. The totaltonnage at Jebel Ali and PortRashid will reach 148.2 mil-lion tonnes in 2011, whileairfreight volumes at DubaiInternational Airport willgrow to 2.3 million tonnes,reaching 2.81 million by2015.

Chile overtook Thailand andMalaysia in this year’s ranking.The country saw a strong recov-ery in airfreight last year, with17.5 per cent growth, and afurther 11.5 per cent could beexpected this year. Chile’slargest port, the port of SanAntonio (POSA) is forecastto experience growth of 9per cent in total tonnage in2011, after a gain of 11.2 percent in 2010. �

World leaders in

logisticsIndia is No 2 in global logistics and the growth percentage would havebeen higher if the infrastructure had improved.


What is so special about

Siesta Logistics?

As far as logistics industry is

concerned, we decided that we

would start a logistics company

with a statement that we do not logistics.

That makes it simpler for us to grow in

this region. There is immense competition

from top to bottom. There is an

organisation of $106 billion to a `one

crore company (all involved in logistics)

and everybody is able to do something or

the other with the funds available. We

decided to carve a niche for ourselves and

we decided we will become a product-

specific logistics company. Siesta Logistics

started a company with only one product

which is sugar. For a product like sugar

we started handling the entire range of

services which may include

transportation, warehousing, raw material

cargo, or for that matter freight

forwarding, etc. whatever the business

required.

The model was tested by us for one

year for sugar and the fresh produce in

India: We remain an India-centric

company. In a span of eight months we

could capitalise the market of over `100

crore from the date of start. That

prompted almost every foreign investor,

FIs to look at our model and look at the

sustainability of the model. We have

proved that it is unlike creating an

infrastructure and then giving it part of

your capabilities. Suppose I have 800

aircraft and I try and fit my customer into

those 800 planes…it is not the right thing.

We decided we would create an

infrastructure for that product only. From

sugar we started with ITC, then moved on

to Britannia, Parle. (We were involved in)

Every part (of the logistics chain) where

the sugar component was the most

The privately-held Siesta Group, started by Ashok Chattaraj in 2006, was inthe news when its three-year-old logistics services firm Siesta Logisticsraised $10 million from Ashmore Alchemy India, a joint venture betweenAlchemy Partners LLP and Ashmore Investments (UK). Engaged intransportation, freight forwarding, port and cargo services, Siesta has aportfolio that includes a number of big names. According to Ashok Chattaraj,Chairman and Managing Director, Siesta Group, there was a need for anoutfit like Siesta Logistics since “the sustained growth in Indian industry,from manufacturing and retail to farming and technology, is creating anincreasing need for seamless logistics solutions”.Headquartered in Bengaluru, the logistics unit serves clients with a portfolioof customised solutions. Backed by a team of specialised professionals, SiestaLogistics delivers expertise-based consultancy services across the supplychain spectrum to corporations. Cruising Heights spoke to Kiran Salunke,Managing Director, Siesta Logistics Corporation Limited. Excerpts:

“We decided we will become a product-specificlogistics company”


KEY DIFFERENTIATOR: Logistics business in India is mainly routed through roads.

Kiran Salunke

CARGO/INTERVIEW

Q:

A:

Siesta Logistics.qxd 7/28/2011 4:58 PM Page 2

important thing; we decided to add value

only on that segment.

�� What are the challenges that

you faced with a niche product?

The major drawbacks of this product

were the ups and downs in the pricing,

the stocking norms, the government

regulations, etc. One-by -one we started

adding all the components which we

have brought into our organisation.

Hence the service portfolio creation that

happened was very product-specific and

we have remained a knowledge-based

organisation. Today, we are able to

address the terms that a customer like

UB wants. We took a project where UB

wanted to launch a fresh produce

business. Right from incorporation of

business up to the farm-to-table

business, we took up the entire chain.

That gave us an image of a niche player

in this market. In the fresh produce

segment we found there was no one

who could say, 'Yes, I understand this

product only.' I may not understand the

whole gamut but what we understand

we understand in totality.

As the business went on, we got

invitations from a lot of French food

companies wanting to enter into the

Indian market. They were suppliers of

turkey, for instance, a product which is

much in demand in India. We got a

huge reaction from the top-end hotels

segment where the requirement may be

for fresh fish from Japan or Turkey —

both niche products.

�� Are the low quantities feasible

for an organisation like yours?

Quantity is the subject matter. Like

when we are handling sugar in millions

of tonnes, fresh produce is again into

millions and millions of tonnes there is

no issue. In that also there is a niche

segment. Within fresh produce, I mean

meat and fish as fresh produce. You

need to address their requirements. I

may be the largest player in this country

but for a particular hotel or for a

particular chef — he would want his

turkey or fish to reach him within 48

hours from France or the UK or Japan

or from wherever he decides to buy.

Hotels and chefs are particular about

this aspect.

We are the only player trying to

address this. For other players this is

one of their services and it is not the

routine service that they are in (unlike

us).

�� Does it work out that way?

It actually became an extremely credible

model because we found there was no

competition. We are not only

addressing the needs of door-to-door.

Let us take the air carriers. There is Air

France or British Airways, for example,

that has the infrastructure for cold

chain. British Airways can deliver the

fresh goods from Bengaluru to London

airport but what happens beyond that

and before that…

The best vegetables are not grown next

to Bengaluru airport. They are produced

deep inside the country. That in itself is

an inaccessible portion…

�� What about infrastructure? Let's

take GST, for instance…

GST in a fresh produce market or GST in

a certain segment is still not a major

concern. What is a major concern is the

food chain… something like this is an

issue that can only be addressed with

volumes. Somebody has to start that

business. We are going to be a pioneer in

that area: First let us resolve the basic

need of delivering fresh meat, flowers or

vegetables. If I am able to generate at

least 1.5 lakh tonnes per month, it will

be easy for us to commit an entire cold

chain infrastructure. A commitment can

be given to the investors that we can

produce the infrastructure overnight.

For that we require a volume of over 1.5

lakh tonnes.

�� Are you thinking of expanding

and bringing in aircraft for

deliveries?

Not at this stage. As for aircraft, we do

not need for domestic use. We had

planned at some stage of using

aircraft— but not domestically, it

doesn't make sense here. It would make

sense (to possess aircraft) if I was a

courier company.

�� Where does the Indian logistics

industry stand in comparison to

players around the world?

Far behind. A major issue that the

logistics industry is facing is customer

maturity. Customer maturity in India vs

customer maturity in Europe is a major

difference. That is something you cannot

fulfill overnight. The understanding of

local conditions is very difficult. The

understanding of cost difference as I can

do this job at a lower cost in India and

that is one individual perception of a

customer which is a very big challenge in

this country.

�� Are you planning any

acquisitions?

We are looking at a few companies where

the knowledge base is very high. These

would be companies where they have the

expertise in any given field. When we see

that these companies are handling millions

of tonnes… there are only 4 or 5 players in

India today that are handling millions of

tonnes in six locations, for example, these

are the people we are looking at. �


TRUE POTENTIAL: Use of heavy trucks in transportation of high-end goods holds a great potential for logistics business in India.

Siesta Logistics.qxd 7/28/2011 4:58 PM Page 3

Cathay extends freighter network to IndiaCATHAY Pacific Airways recently announced that it would

further extend its freighter network with the launch of a new

service to Bengaluru in India. The twice-weekly service will

commence on August 1 and will operate every Monday and

Thursday on a Hong Kong-Delhi-Bengaluru-Hong Kong route.

The launch of the new service, operated by Boeing 747-400F

aircraft, will reinforce Cathay Pacific’s position as one of the

biggest freighter operators in India, with 20 flights a week to,

from or through four major commercial cities: Delhi, Mumbai,

Chennai and now Bengaluru.

For flights into Bengaluru, the airline expects to see strong

interest from China and countries in Northeast Asia for

shipments of computers, computer components, high-value

electronic goods, integrated circuits/semi-conductors and

garments. The main markets out of Bengaluru will be Japan and

North America, with shipments of cars, auto parts,

pharmaceuticals, garments and textiles.

Nick Rhodes, Director, Cathay Pacific Cargo, said, “India is

an increasingly important market for our cargo business and we

are pleased to be able to extend our coverage in the country

through the launch of a freighter service to Bengaluru. This new

service will enhance Cathay’s presence in India.”

In addition to the new destination, Cathay Pacific also

recently boosted cargo ties between India and Europe by

launching a twice-weekly direct freighter service from Chennai to

Frankfurt. The freighters continue onwards to either Manchester

or Brussels, providing access to three European destinations

from South India. Cathay Pacific General Manager, Cargo Sales

and Marketing, James Woodrow, said, “We saw continued

weakness out of our key Mainland China and Hong Kong

markets in June, but this is traditionally a quieter time of year in

the airfreight industry. The consistently strong demand seen

throughout 2010 was certainly not the norm. Our India routes

continued to perform well and we will launch a new twice-weekly

freighter service to Bengaluru in August to further boost our

presence in the subcontinent.”

Blue Dart Express declares profits BLUE DART Express Ltd., a premier courier and integrated

express package distribution company, declared its financial

results for the second quarter (Q2) ended

June 30, 2011, at its Board Meeting held in

Mumbai. The company posted `34.01 cr.

profit after tax for the quarter ended June 30,

2011. Income from operations (inclusive of

fuel surcharge) for the quarter ended June

30, 2011 stood at `370.94 crore, an increase

of 33.80 per cent over the corresponding

quarter of the previous year.

Anil Khanna, Managing Director, Blue

Dart Express Ltd. said, “Being a customer-centric brand, Blue

Dart has robust plans for India and will continue to focus on

product innovation, reach expansion, transit time improvements,

small town (Tier-II and III) activation and strengthening

channels. We will continue to focus on delivering world-class

service quality, experience and maintain our reliability quotient.”

HNA Group to launch cargo business HNA Group is planning to launch a large cargo business in

Turkey. HNA Group will announce a “strategic investment

partnership” with Turkey’s ACT Airlines, an air-cargo company


CARGO JOTTINGS

BULLISH ON INDIA: Cathay Pacific Cargo has charted out big plans forIndia.

FedEx is 2011's Best International Logistics

Provider FEDEX Express was recently recognised as India's Best

International Logistics Provider in Frost & Sullivan's 2011

Voice of the Customer Awards in India. The award was given

to FedEx for its excellence in

international logistics services

and for overall best

performance in this segment

across key industry sectors, as

rated by end-users. FedEx

received the highest ratings

from customers for its

excellence across evaluation

parameters including timely

delivery, security of material,

pickup locations, global

network, commitment to

providing the very best in

customer experience and

value-added services.

“India is a key market for

us and we have consistently

made the necessary

investments to help provide businesses in the region with

greater access to the global market place. We are

committed to providing our customers with the best

possible service and we will continue listening and

responding to their needs. Our focus is to ensure that our

customers continue to receive best-in-class experience

and a value-added proposition,

which they have come to expect

from us,” said Kenneth F

Koval, Vice-President,

Operations, FedEx Express

India.

“This award highlights

FedEx excellence as an

international logistics provider

to the Indian market. FedEx

Express has established itself

as a true leader in this industry

through its commitment to

providing integrated solutions

to fulfill the diverse needs of

its customers,” said Anand

Rangachary, Managing

Director, South Asia & Middle

East, Frost & Sullivan.

CROWNING GLORY: Anand Rangachary, Managing Director,South Asia & Middle East, Frost & Sullivan handing over the 2011Best International Logistics Provider in India award to Kenneth F.Koval, Vice President, Operations, FedEx Express India.

Anil Khanna

Cargo Jottings.qxd 7/28/2011 4:55 PM Page 2


based in Istanbul,

according to a statement.

HNA’s Boeing 747 cargo

planes, also known as

jumbo jets, will start

operating in Turkey in cooperation with ACT, the source said,

adding that there were no such large cargo jets in the local

business. ACT currently operates with Airbus A300 aircraft.

HNA Group provides aviation, logistics, finance and tourism

services with a staff of 90,000. The company’s total investments

approach $30 billion, according to official data. HNA last year

acquired an aircraft maintenance facility at Istanbul’s Sabiha

Gökçen Airport on the Asian side of the city in cooperation with

Bravia Investment from New York.

World Airways ties up with Etihad Crystal Cargo WORLD Airways has extended to December 2012 an agreement

with Etihad Crystal Cargo to provide two MD-11 cargo aircraft

operating on international freighter routes. “These two World

Airways MD-11 freighters will help us maintain the cargo

capacity we require as we sustainably grow our successful cargo

business,” said Roy Kinnear, Senior Vice President of Etihad

Crystal Cargo.

“Etihad Crystal

Cargo is one of our

longest-term

customers, utilising

World’s MD-11

freighter aircraft

continuously for the

past four years,” said

Brian Bauer, Global’s

Chief Commercial

Officer. “We are

pleased to be part of

Etihad’s rapidly expanding international network.” Etihad

introduced all-cargo services from its hub at Abu Dhabi

International Airport in February 2005 and currently operates a

freighter fleet of one Boeing 777F, two Airbus A300-600RF

regional freighters, two A330-200 freighters, in addition to the

two MD-11 freighters from World Airways.

K+N announces cargo growth, acquisition THE first half of

2011 has been

promising for

Kuehne + Nagel,

with airfreight

tonnage increasing

by 18 per cent. The

global logistics firm

contributes this

growth, which

occurred despite a

second-quarter

slump in the global airfreight market, with its recent foray into

the perishable logistics sector.

Much of K + N’s business during the first half of 2011

occurred in the North America-to-Europe and North America-

to-South America trade lanes. One route where airfreight

volumes failed to meet expectations, however, was Europe to

Asia.

K + N is posting growth in a challenging market, which is a

direct result of its recent acquisitions, such as the purchase of the

Amsterdam-based J van de Put Fresh Cargo Handling. With this

procurement, K + N will manage the transportation of perishable

items such as flowers, plant cuttings, fruits and vegetables. The

company will also perform cold-chain storage, vacuum-cooling,

and distribution to locations throughout Europe.

K + N also gained significant market share in South America

with the January acquisitions of Translago and Agencia de

Aduanas Excelsia of Colombia and Mastertransport of Ecuador,

three companies specialising in the transportation of perishables.

AGAIN ON TOP: Kuehne+Nagel has increasedairfreight tonnage by good numbers.

BIG ON PLANS: Etihad Crystal Cargo

TNT's quest to end child hunger

RECENTLY, TNT joined the World Food Programme

(WFP) in a walk in Mumbai to raise awareness and

money to feed hungry school children in some of the

poorest countries in the world. The walk started from

Hotel Ramada at Juhu Tara Road proceeded towards

Amitabh Bachchan's Bungalow — Pratiksha, and back.

It witnessed people from all age groups. Actor Shiv

Pandit and Mihoko Tamamura, WFP India

Representative and Country Director participated in the

walk.

“End Hunger — Walk the World”, provides a

powerful demonstration of public support for WFP's

fight against hunger, with employees from the three

supporting companies walking together with friends

and family, as well as celebrities, local dignitaries,

and WFP employees. In some countries, children

who have benefited from the WFP school-feeding

programme also walk in solidarity. “End Hunger —

Walk the World” evolved from an initiative of TNT

employees in Asia in 2003. Over the past nine years,

the event has mobilised approximately one million

participants and raised funds to feed over 100,000

children in schools for one year. Said Abhik Mitra,

Managing Director, TNT India, “Hunger continues to

be the greatest threat to health worldwide, killing a

child every six seconds. We at TNT believe that it is

our duty to fight hunger, a menace that threatens the

basic of human existence.”

“Walk the World is an excellent example of how

global partnerships can make a huge impact in the

fight against hunger and it was indeed heartening to

see a huge turnout. This has reaffirmed our belief

that we are not alone in our pursuit of rooting out

under nutrition from India. It is our privilege to

work with our private sector partner TNT along with

the government and we stand committed to reaching

out to vulnerable communities who need most help,”

said Mihoko Tamamura, WFP India Representative

and Country Director.

ENDING HUNGER: Staff members of TNT India during the promo-tion of “End Hunger — Walk the World” in Mumbai.

Cargo Jottings.qxd 7/28/2011 4:55 PM Page 3


SNIPPETS

DOMESTIC AIRLINES

IndiGo launches “Get Packing”INDIGO RECENTLY launched a new and innovative holidaypackage called “Get Packing”. With an aim to providing unmatchedcustomer experience and enhancing “hassle-feel travel experience”— “Get Packing” initiative has been designed for both leisure andbusiness travellers.

It provides end-to-endtravel services from flights,hotel accommodation, airporttransfers, local conveyance toentertainment. Travelpackage comprises 150packages in 30 destinations tochoose from which includereligious, business and leisurepackages. For the frequent business travellers, unique businesspackages are also offered with day — return features. The sitewill allow customising trips according to one’s convenience andaffordability, thus making the vacation a hassle free experience.

R Neelakanthan joins SpiceJet as CFO THE GURGAON-based low-cost airline SpiceJet has made yetanother change in its management and has appointed RNeelakanthan as new Chief Commercial Officer (CFO) of theairliner, the company said in a stock exchange filing. Earlier,Neelakanthan was the Vice-President (Finance) of SpiceJet.

The appointment will be in effect immediately as the

company’s former CFO, Seema Chandra has resigned.This is the second management change made by the airliner

in a short span of time. From June 1 this year, SpiceJet appointedS Sridharan as a whole time director of the company.

GMR partners with UFIS Airport Solutions GMR AIRPORT Developers Ltd (GADL) recently signed acollaboration agreement with UFIS Airport Solutions (UFIS-AS). Under the agreement GADL will undertake services likeproject management, airport expertise and AOCC consultancyfor UFIS-AS projects in addition to operating a support centrefor UFIS installations. With thisdevelopment GADL, will be a preferredsystem implementer and support partner forUFIS-AS.

Commenting on the occasion, P S Nair,CEO, Corporate, Airports Sector, GMRGroup, said, “GADL has become one of theleading airport infrastructure developmentcompany in a very short period of time. Itwas created with an objective, to be theleading state-of- the-art airport development related serviceprovider in the region. The strategic partnership with UFIS-ASwill allow GMR Airport Developers Ltd. (GADL) to offerquality products and services to the emerging aviation industry.The seamless integration of the UFIS products has given usconfidence in expanding the business and creating a winningalliance for the future.”

P S Nair

Jet Airways ties up with Ngpay JET AIRWAYS recently entered into a partnership withNgpay, offering guests a convenient option to seamlesslybook Jet Airways tickets on their mobile phones.

This service allows guests to book, cancel and refundtheir e-tickets and also manage payment cards on theirphones. Upon completion of the booking process, an e-ticketwill automatically be sent to the guest's preferred emailaddress. The e-ticket details will also be sent to his mobilephone via SMS.

To activate this facility, Jet Airways guests would need todownload the Ngpay — mobile ticketing application on theirGPRS-enabled mobile phones.

According to Sudheer Raghavan, Chief CommercialOfficer, Jet Airways, “Jet Airways partnership with Ngpaywill offer yet another convenient booking channel, enablingour guests to book tickets on their mobile. We are confidentthat the convenience and simplicity of this service will bemuch appreciated by our guests especially since mobilephones have now become an integral part of our daily lives.”

Announces attractive 2011 Formula 1 packages: JetAirways recently partnered with Fans On Stands Sports Pvt.Ltd. to introduce attractive JetEscapes packages for the 2011Formula 1 Singtel Singapore Grand Prix, to be held at theMarina Bay Street Circuit, Singapore, from September 23-

25, 2011. Guests who avail of these packages will enjoy apodium finish view of the world's first night race and Asia'sonly street race. Fans On Stands is a sports tourism firmdedicated to providing unique and memorable sportingexperiences to fans.

JetEscapes has introduced two sets of unique packagesover three nights/four days and four nights/five days. Thesepackages include return air travel on Jet Airways, returnairport transfers, hotel options ranging from three to five staraccommodation with buffet breakfast, three day race passesfor Zone 4 Walkabout stand and travel insurance for Indiannationals below 70 years.

To get new-look Boeing 737: Jet Airways will get a new-look Boeing 737, with improved cabin features and LEDlighting in September, Boeing India President Dinesh Keskarsaid.

Jet will be the first Indian air carrier to get Boeing 737swith these features. Announcing Boeing's market forecast forIndia, Keskar said Boeing had an order book of 110 planesfrom India, including 37 Boeing 787s for Air India and JetAirways and Boeing 737s for Jet Airways andSpiceJet. The deliveries will be completedin five years. The first Boeing 787 to AirIndia will be delivered in the lastquarter of 2011.

Snippets Aviation 1.qxd 7/28/2011 4:39 PM Page 2


Signs ‘Sister Airport Agreement’ with Incheon Airport:GMR Airports Holding Ltd. (GAHL) recently signed a ‘SisterAirport Agreement’’ with Incheon International Airport Corporation(IIAC), South Korea.

The ‘Sister Airport Agreement’ concept basically outlines theprocess for progressive airports to share technical, commercial andenvironmental best practices through mutual cooperation. Theagreement encompasses establishment of joint training programmesunder the aegis of the GMR Aviation Academy and the IncheonAirport Aviation Academy both accredited by ACI as its globaltraining hubs. The agreement was signed between C W Lee,President and CEO, Incheon Airport and Kiran Kumar Grandhi,Chairman- Airports, GMR Group and P S Nair, CEO (Corporate)GMR Airports at Incheon.

MIAL launches social media initiativeCSIA HAS unique distinction of being the first and only airport inIndia to go live on social media with a dedicated Facebook page andTwitter.

As a part of its ongoing efforts to provide its passengers andcustomers with enhanced accessibility and convenience, MumbaiInternational Airport Pvt. Ltd. (MIAL) recently announced thelaunch of the social media initiative for Chhatrapati ShivajiInternational Airport (CSIA).

You can connect with CSIA on Facebook at(www.facebook.com/CSIAMumbai) and on Twitter at(www.twitter.com/CSIAMumbai). For convenience, CSIA’s officialwebsite (www.csia.in) has links for accessing the Facebook andTwitter pages.

BIAL conducts eye test camp BANGALORE INTERNATIONAL Airport Limited recentlyannounced the beginning of a four-month-long eye test camp fordrivers at the Bengaluru Airport. The initiative is a part of BIAL’slarger Corporate Social Responsibility (CSR) programme of ‘RoadSafety’. In association with Shankara Nethralaya and Essilor, thevision of over 2000 drivers of taxis and employee transport vehicleswill be tested for free and spectacles will be provided at a nominalcost, for those who require them.

Over the next four months, this facility will be extended todrivers, including Bengaluru International Airport authorised taxis(Easy Cabs, Meru Cabs, KSTDC cabs, Akbar and Hertz), SRStravels and BIAL drivers, both on the airside and on the landside.The next level would be to include the drivers of the airport’spartners and airlines.

Through association with organisations that are experts in thefield, BIAL conducts ongoing programmes to educate drivers aboutthe importance of following road rules, driving safely, ensuring thatthey are adequately rested and relaxed while driving to ensure thatthey and their passengers reach their destinations safely.

Delhi Duty Free announces 'Gold Rush'DELHI DUTY Free Services Pvt. Ltd (DDFS) recentlyannounced a unique promotion for Indian travellers inassociation with Dewar's Scotch Whisky. Internationaltravellers, travelling between July 1 and August 15, 2011,could win 10 gms gold coins and a mega prize of 50 gmsgold bar from Dewar's on purchases of Dewar's Whisky.Travellers need simply to fill in a lucky draw coupon onevery purchase of two or more bottles of Dewars Whisky.Lucky draw to be held immediately after the August 15 willdecide the very lucky winners. This ‘Gold Rush’ promotionis happening at Delhi Duty Free for the first time.

On top of which travellers will also be entitled to $8 offon purchase of two Dewar 12Yo bottles and $8 off onpurchase of one bottle of Dewar 18Yo. Dewar's Signaturelovers too can rejoice and on purchase of each Dewar'sSignature, a product of more than 150 years of blendingtradition, buyers can also get $15 off.

Winner of ‘Spirit of Ireland’ festival at Delhi DutyFree announced: Delhi Duty Free and Bord Bia recentlyannounced the winner of the month-long Irish Spiritsfestival running at Delhi Duty Free — the 'Spirit of Ireland'.The month-long festival offered buyers of Irish spirits fromDelhi Duty Free attractive discounts and an opportunity tofill a coupon to win an all expenses paid trip to Ireland.

Vaibhav Badodkar and Colonel Jit Singh are the twolucky winners who would now get an all-expenses paid tripto Ireland, courtesy Bord Bia. The promotion saw over 20different Irish spirits and a variety of chocolates on offer atconcessional prices at Delhi Duty Free, with a select fewalso being available for tasting. The Ambassador of Ireland,Kenneth Thompson announced the names and gave awaythe prizes to the lucky winners after taking out the draw oflots at his residence.

Announcing the names of the winners, KennethThompson said, “The launch of the month-long ‘Spirit ofIreland’ festival at Delhi Duty Free was a very noble idea astravellers were made aware of the wide variety of brandsand flavours available in Irish Spirits. I am very happy tohandover the winner's voucher to Vaibhav and to HarpreetKaur, wife of Colonel Jit Singh, who very rightly deserve tonow enjoy a week-long holiday in Ireland.”

HANDS FULL: (L to R) Vaibhav Badodkar, Ambassador Ken Thompsonand Harpreet Kaur (wife of Jit Singh).

CSR AT ITS BEST: Drivers being tested at an eye test camp at the BengaluruInternational Airport.


SNIPPETS


INTERNATIONAL AIRLINES

afe of

Lufthansa opens largest lounge in Frankfurt

Lufthansa recently opened First Senator Lounge with spafacilities. Frequent flyers who have achieved Senator statusnow have an opportunity to relax in style at Lufthansa's largestairport lounge. In the departures area of Terminal 1 atFrankfurt, top customers can for the first time enjoy a modernwellness area with luxury facilities that include ten showersand two spa rooms. Another entirely new addition to theSenator Lounge is the City Lights Bar.In the centre of the lounge is an atrium that allows natural lightto flood into all the areas not fronted by the 130 square-metreglass facade. The atrium is surrounded by numerous servicefacilities, including an inviting wellness area, where LufthansaSenator Card holders can unwind and enjoy massages, facials,full-body treatments or other beauty treatments.Another entirely new feature of the lounge concept is the CityLights Bar, which was designed in coordination withLufthansa Senators. The bar incorporates unique lightingeffects that have been created with over 30,000 light-emittingdiodes. A bartender is in attendance to fulfil guests' requestsfor drinks and mix cocktails or classic long drinks. The wholelounge has a floor space of about 1,800 square metres withseating for over 300 guests.

Etihad unveils Manchester City livery ETIHAD AIRWAYS took its sponsorship of Manchester CityFootball Club to new heights with the unveiling of a speciallyliveried A330-200 aircraft.

The new “Blue Moon Rising” livery also marks the

Emirates’ Ice system wins Skytrax AwardFOR THE seventh year in a row, Emirates Airline’s ‘ice’inflight entertainment system has been awarded the ‘World’sBest Airline Inflight Entertainment’ award at the 2011Skytrax World Airline Awards. The awards are based onvoting by over 18.8 million airline passengers from 100different nationalities.

“As a global airline serving 113 destinations on fivecontinents, our passengers are as diverse and unique as ourroutes. Emirates strives to make our service the mostcomfortable and entertaining in the world. This year’sSkytrax ‘World’s Best Airline Inflight Entertainment’ awardonce again underlines our relentless commitment toproviding the best inflight entertainment in the air —offeringmore content, in more languages and ultimately more choice,than ever before,” said Patrick Brannelly, Emirates’ VicePresident, Corporate Communications Product. “We areproud to have our efforts recognised once again and we canassure our passengers that we won’t be resting on our laurelsat all; we’ll be working harder than ever before to make surethat our passengers continue to have the best entertainmentexperience in the air.”

Emirates mulls MRO facility in Dubai: Emirates Airlinerecently unveiled plans for the construction oftechnologically-advanced engine overhaul shop in Asia.Theengine shop will complement the present Test Cell Facility inDubai and will be constructed on a 90,000 square metrepiece of land at an estimated cost of $120 million.

The engine shop will have the capability of performing300 engine repairs per annum for the GE90 and GP7000engines fitted to the B777 and A380 aircraft. Thisannouncement represents another milestone for Emiratesengineering in their efforts to increase engine maintenancecapability in terms of volume and repairs. It is anticipatedthat construction will commence by first quarter of 2012 andcommissioned by the fourth quarter of 2014.

Emirates has signed a Letter of Intent with GeneralElectric (GE) to oversee the design and construction of theshop using the most advanced technology, equipment andbest practices in the industry.

“We are very pleased and proud to be working withEmirates in supporting the building of the engine shop and touse GE expertise in this field to introduce best industrypractices in managing engine repairs,” said Muhammad Al-Lamadani, Senior Executive Sales, VP GE International Inc.

LUXURY PERSONIFIED:Emirates' award-winning ice system providesmore than 1200 channels on-demand, with a wide selection of entertain-ment for children and adults.

Qatar lands in Venice

QATAR AIRWAYS continued its 2011 European expansiondrive with the launch of daily scheduled flights to the Italiancity of Venice.

Venice became Qatar Airways' third gateway in Italy afterRome and Milan, to where the airline also operates daily flights,bringing the carrier's Italian presence to 21 services a week.

Flight QR961 touched down at Venice Marco PoloInternational Airport to a welcome ceremony attended by airportand government officials, together with local dignitaries. QatarAirways Chief Executive Officer Akbar Al Baker led a high-profile delegation on the inaugural non-stop flight from theairline's operational hub in Doha, capital of the State of Qatar.Onboard guests included the Italian Ambassador to Qatar,Andrea Ferrari, as well as international media.

Speaking on arrival in Venice, Al Baker said, “We aredelighted to add this beautiful, historic city of Venice to ourglobal route network, further cementing our presence in Italyand clearly proving how important this dynamic market is forQatar Airways.”


commencement of double-daily flights between Manchesterand Abu Dhabi. A team of 40 painters worked around the clockfor 18 days in Abu Dhabi to paint the A330-200 in the coloursof Manchester City. About 450 litres of paint was required tocomplete the job.

The aircraft, which will operate on the Abu Dhabi-Manchester route, will also serve Milan, Frankfurt, Brussels,Johannesburg, Cape Town, Kuala Lumpur, Jakarta, Singapore,Istanbul and destinations throughout the Middle East and India.

James Hogan, Etihad Airways' Chief Executive Officer,said, “We are very proud of our sponsorship of ManchesterCity Football Club, and of our commitment to the widercommunity. Manchester has been a key destination for Etihadfor five years, and the increase in frequency to double-dailyindicates our dedication to the region.”

Etihad Airways has been Manchester City Football Club'smain club sponsor since May, 2009. During that time the clubhas enjoyed considerable success, including its first FA Cupwin since 1969 in the 2010-2011 season.

00CRUISING HEIGHTS August 2011 71

Gatwick Airport: New base for AirAsiaX AIRASIA X recently announced that from October 24, 2011,AirAsia X will commence flights from Kuala Lumpur LowCost Carrier Terminal (LCCT) to Gatwick Airport. The newbase for the airline is set to further increase passenger trafficfrom South-East Asia to London and Europe with six flightsweekly to Gatwick Airport by mid-December.

AirAsia X's decision to switch from Stansted to GatwickAirport was to maximise commercial opportunities at Gatwick,to ultimately drive increased traffic flow between UK andMalaysia, and also the various key feeder markets withinAirAsia's network in Asia Pacific which the airline has provenat Stansted Airport. AirAsia X guests would be given a widerchoice to travel onwards andconnect domestically andinternationally via Gatwickairport. Public transport andaccommodation facilities areeasily accessible via Gatwickfor guest stopover's or forthose heading towards centralLondon and the surroundingregion.

Tony Fernandes will hostAsian 'Apprentice': TonyFernandes, Founder, AirAsia,will host the regional editionof the business-themed realityshow, The Apprentice, itsproducer said recently.

Like its US counterpart, the Asian edition will be anelimination-style competition with the eventual winner earningthe right to be a paid apprentice to Fernandes.

"We are tremendously excited to have Tony on board,"Devesh Chetty, chief executive of Singapore-based productionfirm RGM, said in a statement. Not only is he a great andcharismatic businessman; he is also a personality Asians havecome to associate with worldwide success," he said.

Tun Dr. Mahathir flies on AirAsia X: Y A Bhg Tun Dr.Mahathir bin Mohamad, the former Prime Minister ofMalaysia, flew on AirAsia X's flight to London.

The former premier flew on AirAsia X flight D7 2006,which departed Kuala Lumpur for London and touched down

in Stansted, UK.Tun Dr. Mahathir was

accompanied on the flightby his wife, Tun Siti HasmahMohamad Ali and DeputyGroup CEO of AirAsia andco-founder of AirAsia X,Dato' Kamarudin Meranun.This is the first time for theairline to receive the honourof having Tun Dr. Mahathiras a guest onboard and alsothe first for Tun Dr.Mahathir to experienceAirAsia X's Premium flyflatbed on the Airbus A340aircraft.

Cathay tempts Indian travellersCATHAY PACIFIC Airways has launched “Discover theWorld”, a unique interactive page for its Indian fans on itsFacebook fan page — Cathay Pacific, India atwww.facebook.com/cathaypacificIN. Visitors can winexciting prizes every fortnight for which they need toparticipate by first clicking the 'Like' tab on the page.

Apart from fortnightly prizes, at the end of thecompetition one lucky winner will win the grand prize oftwo return tickets to Hong Kong. During the competition,Indian travellers can also take advantage of the specialonline fares from India to the featured destination when theybook their tickets on Cathay Pacific websitewww.cathaypacific.in.

Speaking on the initiative, Rakesh Raicar-Sales &Marketing Manager-India, Nepal, Bangladesh and Bhutan,stated, “We are integrating social media strategies to bringnew and relevant target audiences to our flagship sites foronline sales and servicing. We want to allow our customersto interact with us the way they want to and at the same timeincrease customer awareness and retention. Through socialmedia we are able to provide more updated product andflight information in a fast, interesting and cost-effectiveway, as well as holding contests and competitions to engageusers.”

GREETINGS OF THE DAY: (L-R) Deputy Group CEO of AirAsia and co-founder of AirAsia X, Dato' Kamarudin Meranun, Y.A.Bhg Tun Dr.Mahathir bin Mohamad and his wife, Tun Siti Hasmah Mohamad Ali onAirAsia X's premium seats.

TRUE DEDICATION: Etihad A330-200 aircraft symbolises the spirit ofManchester City Football Club.


SNIPPETS


Aditya Sarovar opens in Hyderabad SAROVAR HOTELS & Resorts recently announced the opening ofAditya Sarovar Premiere, an upscale five-star business hotel inHyderabad. The hotel is promoted by Manjeera Group and isSarovar's third in the city with Aditya Park Inn and Aditya Hometelalready operational.

Located at HITEC city, Gachibowli this business hotel offers203 guest rooms and suites geared with all-modern amenities andfacilities for the comfort of the business traveller. The rooms aredressed with LCD television with satellite channels, tea/coffeemaker, private mini bar, electronic safe, daily newspaper, a selectionof premium toiletries, wireless internet connectivity coupled with24-hour room service and valet laundry service. The hotel alsoprovides 10,000 sq ft of banquet and conferencing space to cater tothe growing MICE segment.

Yatra.com launches “Jordan Explorer”YATRA.COM recently announced the launch of an experientialholiday package “Jordan Explorer”. This six nights and seven dayspackage offers a visit to the land of mesmerising beauty andcontrasts. With this newly introduced offer, the Indian travellers canvisit the ancient cities of Amman, Jerash, Desert Castles, Wadi Rumthe Dead Sea, to name a few. The package priced at `99,999includes sightseeing, hotel accommodation, buffet breakfast andairport transfers. It can be availed from Delhi and Mumbai.

This holiday package, introduced by Yatra.com, is ideal forthose who are fascinated with picturesque desert landscape and areinterested in archaeology. Apart from being the home to one of thenew Seven Wonders of the World, the remains of the richinheritance of past civilisations are one of the main attractions ofJordan.

InterGlobe garners ‘Best Place to work for’ awardINTERGLOBE Enterprises recently was awarded the ‘Best Place toWork for’ by Great Place to Work Institute, Mumbai for the fourthconsecutive year in 2011. Moreover, the enterprise has beenadjudged “The Best Company in the Transportation industry”,second year in a row, and second best in “The Best Recruitment,

Selection and Induction Category”.InterGlobe has been ranked 27th in this study which is

conducted every year by the Great Place to WorkInstitute‚ in partnership with The Economic Times.The survey measures employee responses to the GreatPlace to Work ‘Trust Index’ and the ‘Culture Audit’

that assesses the peoplepractices prevalent in theorganisations.

Get luxury at Hilton, Mumbai AirportTHE HILTON Mumbai International has been positioned as a‘Business Hotel’, keeping in mind the ever-increasing number oftravellers coming to the city and its proximity to both the airports.The Hotel is designed to ensure an ambience that combinesbusiness and leisure, while retaining comfort and luxury as well.

The Executive floor is the elite floor of the hotel where themost exclusive accommodation is available. The understatedluxury and quiet elegance continues to surround you as you makeyour way to the royal residence where personalised service extendsto every nook and corner of the rooms, which have been designedto suit your every need. The business Centre is designed after thelibrary of a manor — complete with books, workstations, meetingroom, private offices and a boardroom. Some of the other venuespresent are Chancellor — chic, modern and stylishly decoratedbanquet rooms that lend an aura of grandeur to any occasion.

Lemon Hotels in pact with Experian CheetahMail

EXPERIAN CHEETAHMAIL recently announced that it has beenselected by Lemon Tree Hotels for its email marketing campaigns.

After a competitive evaluation process, Lemon Tree Hotels hasselected Experian CheetahMail to provide an end-to-end emailmarketing service from consulting, creative designing andcampaign deployment through to comprehensive reporting. Withan international footprint and vast experience of working withbrands in the travel industry, Experian CheetahMail is wellpositioned to help Lemon Tree Hotels improve deliverability, createmore focussed email campaigns and drive higher RoI bystrengthening relationships with existing customers and reachingnew audiences, so building brand loyalty.

SOTC bags StarBrands 2011 AwardSOTC WAS felicitated with StarBrands 2011 Award on July 6, 2011in a gala ceremony organised by Planman Marcom at JW MarriottHotel, Mumbai. Kashmira Commissariat, COO-OutboundDivision, Kuoni India received the award on behalf of SOTC fromAnisha Motwani, Director and Chief Marketing Officer, Max NewYork Life Insurance and Rohit Manchanda, Director, PlanmanConsulting. SOTC is the only tour operator to be conferred with thishonour.

Star Brands is an annual property of Planman Marcom based onresearch with the consumers to select the strongest brands thatcreated the most impact in the year. The Indian Council for MarketResearch (ICMR) conducted research across India on fourparameters, namely, Product, Innovation, Recall Perception andImpact on Consumers to select the StarBrands.

STRATEGICALLY LOCATED: Inside view of a room at Hilton at MumbaiAirport.

TRAVEL & TOURISM

LUXURY AT ITS BEST: Aditya Sarovar Premiere provides world-class serviceto business travellers.


00CRUISING HEIGHTS August 2011 73

Amadeus: Mobile tech to transform air travel MOBILE TECHNOLOGY is set to transform both airlineoperations and the overall traveller experience, according to anew industry report published by Amadeus. The always-connected traveller: How mobile will transform the future of airtravel is a global report that identifies changing traveller attitudesto airline mobile services while also highlighting the specific,emerging mobile technologies that will revolutionise each stageof the travel experience in the future.

Developed by Norm Rose of Travel Tech Consulting Inc, thereport includes an assessment of airline mobile capabilities today,the emerging mobile innovations that are likely to be launchedover the next one to two years, and also the advancedfunctionality that is set to entirely change the traveller journey as

we know it, over the next three to five years.Designed to stimulate new thinking and drive innovation in

the travel sector, the report draws on a range of qualitativeinterviews with airlines from across the globe, complemented byprimary data gathered from a global study of 2,978 travellersconducted by JD Power on behalf of Amadeus.

Unveils inter-regional hotspots of airline traffic growth:Asia Pacific and the Middle East, followed by Europe, havebecome global hotspots for inter-regional long-distance air

travel, according to analysis by themarket intelligence solution AmadeusTotal Demand. The review looks attrends in worldwide passenger demandin between regions over the last twoyears, comparing the first quarter of2009 to the first quarters of both 2010and 2011.

Demand for air traffic between AsiaPacific and the Middle East grew at acompound annual growth rate (CAGR)of more than 13 per cent to almost 3million passengers a months in the firstquarter of 2011. Dubai remains themost prominent origin and destinationamongst the fastest growing city pairs,such as Dubai-Mumbai, Dubai-Karachiand Dubai-Delhi.

Traffic between the Middle Eastand Europe has surged 10.7 per centCAGR over the last two years, creatinga market of approximately 2.4 millionpassengers a month. Dubai, Londonand Paris are the chief contributors tothis trend, with London-Tel Aviv, Paris-Cairo, and Dubai-London as examplesof rapidly growing city pairs.

“The Middle East is frequently misconceived as just a point oftransfer. Our data, however, shows strong evidence of the sharpincrease as origin or final destination of this part of the world,”says David Doctor, Director, Amadeus Airline and Travel AgencyDistribution city pairs.

Metropolitan dishes out India on a platterAFTER A decade of wowing guests with authentic pan-Indiancuisine at its Indian specialty restaurant, Delhi's MetropolitanHotel recently introduced another dimension to the popularChutney by including a modernluxurious bar in a brand newambience.

The renovated Chutney, Bar+Tandoor, in its new avatarcontinues to be a fine dining eaterybut with accents of the vibrant Delhistreet culture. The gilded interiorsdefine it as a restaurant of style andelegance where one can have anunmatched dinning experience. Acolourful rickshaw at the entrancegives it a local touch, while ethnicfabrics in vibrant colours adorn thewalls.

The eatery specialises in chutneysused to enhance the flavour of a dish.

They may be sweet, salty, sour, spicy, pungent, hot or all ofthese. The restaurant has an exhaustive repertoire of more than200 varieties of unusual chutneys made of fresh, seasonal fruits,vegetables and herbs to add on to the gourmet dining.

Along with the chutneys, the restaurant serves a fusion offlavours from across India.The concept of pre-platedfood with innovative andexquisite presentation hasgiven a different dimensionto the way food is served.One can choose fromsignature dishes of therestaurants like KebabiChoosa — tandoori chickenmarinated in chef's specialspices or Adraki Chaap —minced chicken temperedwith ginger and cooked inonion and tomato masala.The piece de resistance isthe Biryani.

FROM THE HAVENS: Chutney Dum Biryani remains the best delicacy at the Metropolitan Hotel.


Imagine picking up your telephone tospeak to your ‘very own’ airline andas soon as you say “Hello!”, thevoice at the other end says, “Yes, Mr

Yourname. And where do you want to flytoday?” It is almost like chartering a spe-cial flight.

Indeed, it is no longer imagination. Atleast not for Thomas Stuker. He becameUnited Airlines’ “number one customer”recently. And his claim to fame: flying onUnited’s 5,962 over the last 29 years.Stuker, a car salesman from Chicago,became the only one to have clocked 10million miles on United’s Mileage Plusprogramme. Stuker is way beyond theordinary frequent flier with his hoard ofmega-miles.

Stuker’s feat - and he loves flying ashe confessed: “I just — I love travel. Imean, for a person who 25 years ago wasscared to death to fly — I couldn’t get onan aircraft; it really bothered me. But nowit’s evolved to a time where if I go a weekwithout a flight, I just feel something isnot right” - reminds one of high-flyingRyan Bingham played by GeorgeClooney in ‘Up in the Air’. This summer,Stuker flew so much that he had 23 con-

secutive meals on planes.The day Stuker reached his 10 mil-

lionth mile and entry into the United Air-lines Global Services Program, a closely-guarded secret society - after a flight fromLos Angeles to Chicago - United couldnot help but make it a huge PR event atthe end of which Stuker was loaded with anumber of classy gifts and even had anUnited plane named after him.

What does the membership mean?According to United spokeswoman RobinUrbanski Janikowski: “You don’t knowwhat you get until you are in it, and thenyou don’t want to leave. It’s a world thatnot many folks know even exists.”

Simply put, these special flyers priv-ileges include arrival at special

check-in areas where agentsgreet them by name and

take away their bags.Their boarding

passes are

already printed and at many airports theyare taken away through a hidden door tothe front of the security checkpoint queue.These people

get first choice of meals and in theevent of their baggage getting lost, specialefforts are made to find and deliver thebags home.

The real perks come when a flight isdelayed or a connection has to be takenwith little time in hand. For these persons,the airline bends over backwards with aspecial agent meeting the traveller at thearrival gate with the boarding pass of theconnecting flight. He is then taken on aspeeding golf cart to his next flight.

No wonder Stuker said, “They really,really, really take care of you…It is total,total VIP.” He remembered the time whenhe was flying out of Chicago’s O’HareInternational Airport. He was escorted byGlobal Services through the terminal withthe then-US Sen Barack Obama, justbefore Obama announced his intentions toseek the presidency. “It’s nice to knowthat United literally treats me like thePresident of the United States when I fly,”said Stuker.

And at the United Los Angeles firstclass lounge, Stuker has his favorite drink— a Bacardi and Diet Coke - waiting forhim before he can sit down and when heleaves, he is handed a packed snack forthe next flight of his favourite chips andguacamole. �

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STU(C)KIN THE

WELL-DESERVED: Thomas Stuker was felicitated for his commendable feat by the staff of UnitedAirlines at a glittering function.

BEFITTING HONOUR: United Airlines'aircraft bearing the name of Thomas Stuker.The aircraft was dedicated to Stuker as amark of respect to him.

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