ASSOCIATION OF PRIVATE AIRPORT OPERATORS

Monthly Newsletter July, 2012

APAO Members:

CONTENTS

1. Aviation Sector ...... 2 2. Airport- AAI Managed Airports…………………………………………………………………12 2.1 Bangalore International Airport Limited……………………………………………..12 2.2 Cochin International Airport Limited ...... 13 2.3 Delhi International Airport Limited……………………………………………………..14 2.4 GMR Hyderabad International Airport Limited……………………………………15 2.5 International Airport Limited………………………………………………..16 3. Airlines………………………………………………………………………………………………………18 3.1 Air ………………………………………………………………………………………………18 3.2 ……………………………………………………………………………….20 3.3 SpiceJet………………………………………………………………………………………………20 3.4 …………………………………………………………………………………………21 3.5 IndiGo………………………………………………………………………………………………..22 3.6 GoAir………………………………………………………………………………………………….22 3.7 International Airlines………………………………………………………………………….22

4. Cargo ……………..………………………………………………………………………………………..24 5. Traffic…….…………………………………………………………………………………………………25 6. Source………………………………………………………………………………………………………27

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1. AVIATION SECTOR

1. Ministry of Civil Aviation has hit back at the Comptroller and Auditor-General (CAG) saying that the report holding that the government would suffer a loss of Rs 1.63 lakh crore by leasing out land to Delhi International Airport Limited (DIAL) at concessional rates is “grossly misleading”.

2. Appointments Committee of the Cabinet on 3rd July had approved the extension of additional charge of the post of Director General at Directorate General of Civil Aviation to Shri E.K. Bharat Bhushan who at that time was Additional Secretary and Financial Adviser in the Ministry of Civil Aviation till the year end. However on 10th July, Shri E.K. Bharat Bhushan was removed as head of the Directorate General of Civil Aviation and the charge was then handed over temporarily to Prashant Narain Sukul, joint secretary in the Ministry of Civil Aviation. Shri E.K. Bharat Bhushan has been moved to the Steel Ministry as additional secretary and financial advisor while his counterpart at the Steel Ministry, S Machendranathan, will take up the responsibilities at the Ministry of Civil Aviation.

3. Mr. Arun Mishra has been appointed as Director General of Civil Aviation, succeeding E.K. Bharat Bhushan. Mr. Mishra took the charge as on 26th July 2012 and said that his main priority was to improve safety culture in airlines and airports and to make the pilot licensing system more stringent and to check fraudulent practices.

4. Mr. K N Srivastava, Karnataka cadre IAS officer has been appointed as Secretary in the Ministry of Civil Aviation from 1st August 2012.

5. Union Government on 3rd July informed Delhi High Court that the recommendation for constituting an appellate body of the Airport Economic Regulatory Authority (AERAAT) was with the Chief Justice of India (CJI) and that a decision was likely to be taken very soon.

6. Federation of (FIA) comprising of various airlines on 3rd July approached the Delhi high court seeking a stay on the Airport Economic Regulatory Authority of India’s permission to DIAL for a three-fold hike in aeronautical tariff for IGI Airport.

7. On 3rd July, the then Karnataka Chief Minister Mr. D.V. Sadananda Gowda had appealed to Defence Minister Mr. A.K. Anthony to reconsider the decision of moving Asia’s prestigious air show, Aero India, out of Bengaluru saying that the issue of air space management can be sorted out through proper coordination planning. Bangalore International Airport had taken up the issue of airspace management and the Ministry of Civil Aviation had approached Ministry of Defence to consider moving the show to a location where there is greater free space available. On 4th July, Defence Minister A.K. Anthony assured the Chief Minister that Aero India-2013 will not be shifted out of Bangalore.

8. Boeing 2012 Current Market Outlook predicts a $4.5 trillion market for 34,000 new airplanes over the next 20 years as the current world fleet doubles in size. The market for new airplanes is set to become more geographically balanced in the two decades. Asia-

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Pacific region will be the biggest market for new planes, with a potential for 12,030 new planes there through 2031.The next biggest market is Europe with 7,760 and North America with 7,290.

9. Rolls Royce in its market outlook 2012 has reported that India and China would be among countries which would constitute the largest market for aircraft engines and their after sales services totaling $1,700 billion over the next two decades. Delivery of 1,49,000 engines have been forecasted over the next 20 years to power 68,000 new aircraft and business jets. Engine themselves would be worth $ 975 billion and $700 billion for after-market services. The Study also said that India and China domestic aviation market would grow at 9.8% and 7.9% per annum respectively. Europe and North America would grow by 2.5% per annum.

10. Bird Strike Research Group of India is using airports at Mysore, Hubli and Mangalore for its study so as to discover methods to prevent bird strikes under a variety of situations.

11. Airports Authority of India (AAI) and private operators have approached Ministry of Civil Aviation to open escrow accounts where the airport user charges paid by passengers under various names are deposited straightway at the time of ticket booking itself. As the airlines collect the charges from the passengers at the time of booking tickets on behalf of airports and are allegedly not paid to the airports.

12. Government has proposed to replace the existing Aircraft Act of 1934 which does not cover the critical issues such as viability and security, and has been severely criticized in safety audits conducted by global aviation bodies, with a new Civil Aviation Act of 2012.

13. Travel agents have decided to levy service fee on full-service carriers like and Jet Airways from July 16th after the carriers reduced their commission form 3% to 1%. The domestic fee has been proposed at Rs 225 and Rs 325 for an economy and business class ticked respectively. The international routes have been divided into the neighboring area that range from Dubai to Singapore with the fee between Rs 775 and Rs 3,250 per ticket. The fee for distant places like Europe, America and Australia will be between Rs 1,625 and Rs 6,500.

14. IATA Agent’s Association of India is seeking withdrawal of a transaction fees scheme announced by Air India and restoration of the current 3% commission. Travel Agents contribute more than 75% of Air India’s passenger load, both in the domestic and international sectors.

15. Airport Authority of India will upgrade the system of pre-departure clearances given to aircraft at Delhi’s Indira Gandhi International Airport by August so as to make flights at the Delhi airport take off in a much smoother and faster manner.

16. Labour Ministry is rethinking classification of ‘workmen’ to exclude high paying jobs like airline pilots.

17. Airports Authority of India had identified 101 obstructions on either side of the runway at Patna Airport which makes the airport unfit for the operation of bigger aircraft like Airbus 320 and Boeing 737 and had given the deadline of June 30 to Bihar Government Page 3 of 27

to remove the obstacles or face closure of the airport. Directorate General of Civil Aviation has termed Patna Airport ‘unsafe’ and has asked Airports Authority of India to reduce the available runway length and mark it accordingly by July 11th. This means that Airbus A320 and Boeing 737 aircraft which currently fly would no longer be able to operate to Patna Airport and only smaller turboprops like ATR’s would be able to land and takeoff from the airport – that too with severe load penalty or partially filled. Airports Authority of India (AAI) has given its nod to set up the new airport in Nalanda instead of Patna after the existing Jayaprakash Narayan International Airport was declared ‘dangerous’.

18. An International Airport is set to come up between Agra and Mathura with a view to catering needs of tourists. The airport is planned on a public private partnership and is likely to be completed by 2017.

19. Ghaziabad Development Authority (GDA) and official are vetting possible sites in NCR for heli-link services for commercial flights to Lucknow and Agra as well as for pilgrims en route Varanasi and Vrindavan.

20. Airports Authority of India is conferred with the prestigious Golden Peacock Eco- Innovation Award on 7th July 2012 for promoting environment conservation practices. The Authority uses eco-friendly recycled paper within the organization and has its own paper recycling unit. The Golden Peacock Eco-Innovation Award is given every year to the most innovative product developed as determined by satisfaction of customer’s long- term needs and aspirations in a most effective manner.

21. Ministry of Civil Aviation has moved a proposal to reconstitute the Civil Aviation Safety Advisory Council. The extended term of the 28-member council ended on May 27th 2012. The council is mandated to strengthen aviation safety environment.

22. Union Cabinet is likely to pass a resolution endorsing the fact that Indian airliners would not share their specific carbon emission data with European Union (EU) authorities.

23. A survey conducted by Airports Council International (ACI) has adjudged Jaipur Airport as number one among the 126 airports run by the Airports Authority of India (AAI) including Delhi Airport, Mumbai Airport, Kolkata Airport and Chennai Airport. The survey was based on 33 parameters including airport safety and security, immigration and customs, cleanliness, runways, facility of parking and catering etc.

24. Appointments Committee of the Cabinet has strongly objected to the Ministry of Civil Aviation giving additional charge of Chairman and Managing Director (CMD) of Pawan Hans Helicopters Limited (PHHL) to Joint DG in DGCA Anil Srivastava, arguing that a regulator cannot be an operator in the same sector.

25. Director General of Civil Aviation held a meeting with CEOs and representatives of the Airlines on July 13th to discuss various issues faced by the industry. The Director General asked the airlines to prominently display and include in its tariff sheets the charges for providing conveniences such as online bookings or printing of tickets, if levied by them, this came in the wake of complaints that some airlines were charging Rs 50 for a ticket

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printout at the airport counter. The Director General also asked the airline to strictly adhere to the prescribed safety standards and keep a close watch on security issues.

26. Online travel agency Yatra Online plans to go for a franchise model and have 100 offline stores by March 2013. At present the travel agency have 40 company owned and operated stores.

27. The Federation of Indian Chambers of Commerce and Industry – Tamil Nadu State Council (FICCI-TNSC) has urged the State government to come out with suitable policy to expedite the creation of aerospace cluster that was announced in March 2012. FICCI- TNSC has suggested four places – Chennai, Sriperumbudur, Hosur and Tiruchi – for creation of aero clusters due to its unique inherent eco-system built over the years.

28. The government has given more time to 33 special economic zone developers including GMR Hyderabad International Airport Ltd. to execute their projects.

29. DGCA has done a study of airfares and has concluded that the airfare offered by various domestic airlines on different sectors remained within the fare bands available on their respective websites.

30. A study done by CAPA has stated that over the next 10 years, all six metros including Bangalore, Chennai, Delhi, Hyderabad, Kolkata and Mumbai are expected to have provisioned for a second airport and Mumbai will need to start preparing for a third, based on current growth estimates. The airport sector is expected to see a further investment of $30 billion which will consist of upgrade of existing airports, provisioning for second airports at each of the metros and construction.

31. InterGlobe Enterprises is planning to set up a retail chain across airports, metro and train stations in India in collaboration with Dufry International AG. The chain will be branded ‘Hudson News Cafe’ through their joint venture InterGlobe Retail (P) Ltd.

32. A Parliamentary Committee meeting was held on 17th July and was attended by Members of Parliamentary Consultative Committee of Ministry of Civil Aviation and senior officers of Civil Aviation Ministry and DGCA. The parliamentary committee has discussed the following issues:

a) A bill to create a Civil Aviation Authority to replace the Directorate General of Civil Aviation (DGCA) would likely be introduced in the winter session of parliament. The new authority is being proposed to strengthen the regulator by giving it adequate financial and administrative authority and address current constraints in recruitment and retention of technical manpower. b) A new policy in the form of Route Dispersal Guidelines is under consideration of the Central Government in line with its plan to provide air connectivity to the country’s remote and interior areas. c) A proposal to restructure the Bureau of Civil Aviation Security (BCAS) and to constitute a dedicated security force. d) Ministry of Civil Aviation is also in the process of enhancing the present operations of helicopters and construction of heliports at various places to improve the connectivity of smaller places, including places of religious and tourist importance Page 5 of 27

with bigger cities. The Ministry would also soon modify guidelines for acquisition of aircrafts so that Indian carriers become bound to acquire smaller aircrafts needed for providing connectivity to these smaller cities. e) Ministry of Civil Aviation has initiated action to develop India as an international hub for the passengers, which includes revisiting the policy regarding bilateral air service agreements with different countries and also rationalization of all bilaterals and traffic entitlements on international routes to Indian carriers and rationalization of traffic on domestic routes. f) Ministry of Civil Aviation also proposed to set up a National Aviation University, as a measure of skill augmentation and to produce the next generation of aviation professional. The National Aviation University is aimed at creation of aviation training hub in the country to meet the requirements of other countries in the region.

33. Airports Authority of India (AAI) and Indian Space Research Organisation (ISRO) have jointly taken up the Rs 774 crore project GAGAN (GPS Aided Geo Augmented Navigation) has commenced the process of Final System Acceptance Test (FSAT). The objective of FSAT is to evaluate the system performance and its critical parameters in the integrated live environment using the satellite signals and ground based systems on integrity, accuracy, continuity and availability for aviation use. GAGAN is expected to be ready for operation and certification by June 2013.

34. The cabinet is likely to clear by July end a compensation package agreed by Air India and Boeing over delayed deliveries of Dreamliners.

35. Minster of Civil Aviation informed that the government is looking at allowing foreign airlines to invest in domestic carriers but there would be no change in FDI cap of 49%.

36. Corporate Affairs Ministry has asked the Competition Commission of India (CCI) to probe the recent rise in air fares for possible cartelization by airlines. Ministry has noted the sudden hike in air ticket rates in the last 4-8 weeks and has transferred the case to Competition Commission of India (CCI).

37. Minister of Civil Aviation Shri Ajit Singh has ruled out the bailout of Kingfisher Airlines.

38. Tata Consultancy Services has signed a multi-year agreement with Scandinavian Airlines (SAS) for providing its finance and accounting F&A platform to the air carrier.

39. Uttar Pradesh Government will soon undertake construction of an international airport at the Buddhist pilgrimage town of Kushinagar. The project is proposed to be built on the public-private partnership model at an estimates cost of Rs 350 crore. The existing air strip in Kushinagar would be upgraded to an international airport. Around 615 acre has been acquired from the Civil Aviation Department and the project consultant has sought expression of interest from developers.

40. Gujarat Government has selected Ventura Aviation and for providing onshore services and Meher Air Service for providing offshore service. The government has identified 5 circuits and 11 airstrips and will now decide on allotment of routes to

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these companies. Gujarat registers air cargo traffic growth of 19% in fiscal 2011-12 compared to the growth of 10% in shipping and 9% in railways.

41. Prime Minister Office (PMO) has called for a high level meeting to discuss aviation turbine fuel. The meeting will also assess the role of state-run oil companies which currently have a monopoly on supplying ATF to all airports barring Delhi, Hyderabad and Bangalore.

42. The proposed Aranmula Airport, Kerala would be presented at the forthcoming ‘Emerging Kerala’ global investor meet in September. The KGS Aranmula International Airport project has an outlay of Rs 2,000 crore with a 1:1 debt-equity ratio. The first phase of the project is expected to cost Rs 750 crore. The project has Malaysia Airports as its technical and strategic partner.

43. Indian Government is contemplating the proposal to allow airlines form the Association of South East Asian Nations (Asean) to initially operate unlimited flights between their capitals and . The exemption eventually could be extended to flights to cities including Mumbai, Chennai and Kolkata. The acceptance of this proposal will update the 2003 India-Asean open sky agreement that allows carriers to operate daily flights to various metros.

44. In order to reduce the Haj Subsidy, Union Cabinet has cleared a proposal of Ministry of Civil Aviation for the increase in fare to be paid by each Haj pilgrim from the current Rs 16,000 to Rs 20,000 from 2012 onwards.

45. Minister of Civil Aviation on 21st July said that the newly constructed Chennai Airport would be partly privatised and that a similar move will be effected for Kolkata Airport as well. Airports Authority of India (AAI) is not in favour of handling over the modernised Chennai and Kolkata airports to private players from the public sector because these are the two largest revenue earning airports.

46. Centre of Asia Pacific Aviation (CAPA) has said that India could face the possibility of downgrading its aviation safety by the US if it did not take urgent steps to strengthen institutions like the DGCA to meet challenges of fast-growing air traffic.

47. Minister of Civil Aviation on 21st July said that the talks are on with the Planning Commission for an allocation of Rs 65-75,000 crore for aviation which will be used for the second and third tier cities. Smaller airports would not only contribute significantly to the GDP but also increase development in towns.

48. Aircraft manufacturers are now working on a system that will be installed in the aircraft to scare off the avians. Airlines in India have lost about Rs 18 crore in 2011 due to bird- hits and incidents of runway incursions by stray animals.

49. Ministry of Civil Aviation has sent a proposal to the DGCA to look into the possibility of importing aircrafts older than 15 years. If allowed, it would help the airlines to buy comparatively cheaper planes or even tie-up with international airlines and get planes at

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reduced costs. The fear is that the older planes will be less fuel efficient which will add to the cost of running the airline and will increase the burden on the DGCA to approve and certify every aircraft.

50. State-owned Pawan Hans Helicopters Ltd has resumed its services form 26th July in the mountainous Meghalaya after a gap of 15 months.

51. Supreme Court on 23rd July reduced the government’s discretionary quota seats for Haj pilgrims to 300 from 5,050 seats proposed. A bench of Chief Justice has limited the number of seats to be allocated under the discretionary quota by the president to 100, vice-president to 75, External Affairs Minister to 50 and Haj Committee of India to 200 seats. Supreme court was informed that 11,000 seats have been reserved under government quota to be allocated for Haj 2012 but 5,050 were to be kept in “discretionary” category.

52. Kerala Government has requested the Centre to relax norms to enable the state to launch its own airline ‘’ in order to provide qualitative travel facilities to Keralites in Gulf countries. The airline will follow the same model which was adopted in forming Cochin International Airport, the first airport in the country that was constructed with the private participation outside the ambit of Airports Authority of India.

53. Central Government has informed Delhi High Court on 24th July that it has already started the process to revive the defunct Airports Economic Regulatory Authority Appellate Tribunal (AERAAT).

54. International Air Transport Association President Tony Tyler in his keynote address to the Confederation of Indian Industry (CII) on 25th July mentioned that the “India’s aviation is in a multifaceted crisis,” severely impacted by high costs, exorbitant taxes and insufficient infrastructure and asked India for action on reducing tax, ensuring capacity and keeping costs in check for the aviation industry.

He mentioned that the under-pricing of tickets by Air India was adversely impacting the market and that the government’s long-term financial aid has not rehabilitated the business at AI and was rather having destructive impact on the other airlines.

High Costs: The high cost of doing aviation business in India is squeezing the lifeblood out of the airline sector. He mentioned that the Infrastructure costs and taxes need urgent attention.

Airport Costs: He said that the India’s Airports are becoming increasingly expensive. Airports Economic Regulatory Authority (AERA) has recently approved a 346% increase in charges at Delhi Airport effective from May 2012 which will add over $400 million in operating costs for airlines providing connectivity to India through Delhi. An increase of this magnitude will impact travel demand by 5-7%. He further added that to operate Delhi Airport, DIAL pays 46% of top line revenue to the Airports Authority of India (AAI) as a concession fee, much of which is used to subsidize other public sector Airports which is in contravention of international standards, distorts competition and compromises Delhi’s cost competitiveness. He urged the government to initiate

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deliberations on utilizing the 46% concession fee to offset the increase in aeronautical charges and the cost for passengers as this could be the basis for a way forward that protects the interests of DIAL, its airline customers, the fare-paying public, and the economy and could be a workable solution to avoid Mumbai, with a similar concession structure, falling into the same dire situation.

Taxation: Ministry of Finance imposes a service tax on air tickets, landing and navigation charges which contravenes International Civil Aviation Organization (ICAO) policies. India’s airlines are also taxed on domestic fuel that can add an additional 30% to the fuel bill. On top of that is an excise duty of 8.2%. As a result, fuel is about 45% of total operating costs for Indian carriers, compared to a global average of 33%. He said that taxes may provide short-term gain for finance ministries at various levels of government but they are compromising the initiatives and strategic priorities of other ministries. India’s Commerce Ministry wants to increase India’s exports to $500 billion by 2013-14—double the 2010-11 level. The Tourism Ministry is targeting 10 million tourists by 2017 nearly double the 5.7 million arrivals expected this year. “Reducing the tax burden on connectivity will be a critical element of success for both these efforts with more competitive business travel, more cost-efficient shipping and a more inviting welcome for 90% of international tourists who arrive by air.

55. Government is planning to set up a facility to be separate from the current (tariff analysis unit) division of the Directorate General of Civil Aviation (DGCA) to monitor domestic air fares. The proposal is aimed at ensuring greater transparency in the pricing of domestic air tickets.

56. According to a survey by Skyscanner, more than two-thirds or 66% of Indian travellers have listed airports as the most stressful factor for them while planning a trip, with their queues and security checks as the number one stress factor. The third most stressful aspect was the search for cheap flights. The least stressful factors are the finances, finding accommodation and arranging travel documents.

57. The International Civil Aviation Organization (ICAO) is going to do a safety audit of the Directorate General of Civil Aviation (DGCA) in December 2012 and examine if it is effective enough to ensure safe flying in and over India. The ICAO report is then made public to all countries which then decide whether the examined place is safe to fly to or not.

58. Reliance Industries Ltd (RIL) is expected to invest close to $1 billion over the next few years and hire around 1,500 people in its new aerospace division.

59. Haryana Chief Minister Bhupinder Singh Hooda met Union Minister Ajit Singh on 27th July and urged him to take forward the proposal for building a Greenfield cargo airport for international operations at Meham in Rohtak district. Mr Hooda informed thate the proposal has been sent by the State through Haryana State Industrial and Infrastructure Development Corporation and that an area of about 2,770 acres has already been identified for the project which will be purchased from private parties.

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60. Airport Authority of India (AAI) will award Rs 314 crore work on the integrated terminal to be built as part of the new International Airport to Larsen and Toubro (L&T). The new terminal would come up within two and a half years, paving the way for handling 25 lakh passengers annually and would come up on an area of 40,000 sq. metres. The new terminal would be modelled on the Delhi airports T3 terminal. The terminal would have the facilities to handle 1,100 domestic and 500 international passengers at a point of time. The terminal would be equipped with 3 aerobridges in the first stage.

61. Prime Minister Manmohan Singh has approved a detailed roadmap for 7 major infrastructure projects to revive demand for goods and services as well as to boost economic growth. In aviation, new airports being built at Navi Mumbai, Mopa in and Kannur in Kerala are being directly monitored by Prime Minister.

Navi Mumbai Airport – Ministry of Civil Aviation in consultation with Maharashtra Government will finalise the timelines for bidding by August 15th. After that the nodal aviation ministry will seek investment clearances from cabinet committee on investment headed by prime minister. As per deadlines set by PMO, all airport-related contracts will have to be awarded by end of 2012.

Mopa airport, Goa – A steering committee led by state chief minister is acquiring land. The PMO has set March 31, 2013 as the cut off time for awarding the commercial contracts.

Kannur International Airport, Kerala – A state government agency is implementing the project.

62. Minister of Civil Aviation Shri Ajit Singh has given his assurance to Chief Minister Prithviraj Chavan that the Centre will take all necessary steps to expedite the construction of the Navi Mumbai International Airport It was informed that the cabinet committee on infrastructure will soon meet the state-appointed high-powered committee and they will discuss the legal aspects including the bid document, contractual liabilities, infrastructural and environmental issues.

63. Airports Authority of India (AAI) will construct a new Greenfield airport at Holongi, Itanagar at a cost of Rs 650 crore. The Ministry of Civil Aviation will soon move a note to the Union Cabinet for approval of the strategic project which will link the border state with the rest of the country directly.

64. Airports Authority of India (AAI) and RITES Ltd. has signed a MOU for collaboration for aviation projects both domestic and international.

65. MakeMyTrip has entered into a pact with online payment facilitator PayPal to offer its overseas customers an additional option to pay for their international flight bookings to India. This offers customers a trusted and safe payment option.

66. Airports Authority of India (AAI) is keen to commence international cargo handling at Pune and Bangalore. The Authority has secured land near Lohegaon airport in Pune to

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enable it to develop a dedicated air cargo facility and will also commission the air cargo complex at Mangalore Airport by August for the handling of international and domestic cargo.

67. Airports Authority of India (AAI) will open a direct route between Delhi and Mumbai to improve fuel efficiency and reduce carbon footprint with the new satellite-based navigation system, RNAV5. Instead of taking a roundabout route through Ahmedabad, Jaipur and Udaipur, a flight can now fly directly from Mumbai to Delhi saving time and fuel. Ahmedabad-Delhi, Baroda-Delhi, Udaipur-Delhi are some other sectors which will have a straight route.

68. CAPA’s report ‘Long-term vision and an enabling policy environment critical for Indian Aviations’ has stated that the aviation sector needs to be in good health if the country has to achieve double-digit GDP growth. It believes that about three years will be needed for the government to set the ground for the changes to kick-in. CAPA suggest a two-stage plan. Stage 1, till 2015/16, will make a period when the government removes distortions in the sector to create a level-playing field by establishing new regulatory, legal and fiscal frameworks and strengthening institutional capacity. Stage 2, or post 2015/16, will be characterised by a liberal aviation sector which is professionally regulated and where competitive dynamics will determine market outcomes.

ATF FUEL PRICES

1. IOC, HPCL and BPCL have hiked jet fuel or aviation turbine fuel (ATF) by 17% in line with firming global rates on 16th July. ATF prices in Delhi are hiked by Rs 1,039 per kilolitre to Rs 62,208 per kilolitre while in Mumbai prices are raised by Rs 1,069 to Rs 63,003 per kilolitre.

2. A survey has showed Indian carriers pay anywhere between 47% and 65% more for fuelling up their aircraft for domestic flights than other airlines globally. Fuelling for international flights in India is 13% to 27% more than their peers globally.

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2. AIRPORT – AAI MANAGED AIRPORTS

1. Netaji Subhas Chandra Bose International Airport has proposed to hike rentals for ticket counters and other space (provided to airlines) inside the new terminal building which is expected to be operational in October.

2. Kolkata Airport has lined up a trial run of the arrival lounge of its new integrated terminal on July 15th. Trial runs for departure facilities and international flight operations including customs and immigration set-up are likely to be taken up soon.

3. Bhopal Airport building has been adjudged first in the National Structural Steel Design and Construction competition conducted by the Institute for Steel Development Growth.

4. Indore Airport was ranked second in the National Structural Steel Design and Construction competition conducted by the Institute for Steel Development Growth.

5. Air Cargo Complex at Mangalore Airport is likely to be commissioned by August. The cargo terminal will be handling international and domestic cargo.

6. The trial run at the new international terminal at Chennai Airport was carried out on 24th July. The new domestic terminal at the Airport is ready for the inauguration anytime after August 1 and will be operational from Independence day i.e. August 15th. The Rs 2,700 crore project was initially slated to be completed in mid 2011 but was postponed due to delays in execution. Passenger handling capacity will increase from 9 million to 23 million.

7. has registered a positive growth of over 30% in number of domestic passengers in 2011-12. A study has revealed that the passenger traffic form Madurai could grow to 9.17 lakh including 2.36 lakh international passengers by 2016.

APAO MEMBER AIRPORTS

2.1 Bangalore International Airport Pvt. Ltd.

1. Bangalore International Airport Limited has been honored with the Golden Peacock Management awards 2012 making Bengaluru International Airport the first ever airport to receive this recognition. The World Environment Foundation, with the aim of improving sustainable and effective Environment Management Systems within organizations, has conferred this prestigious award to BIAL.

2. Bangalore International Airport Limited was visited by Shri Vijai Prakash Agrawal, Chairman, Airports Authority of India (AAI) on 16th July to inspect the developments on the T1 expansion work. The inspection areas included the additional terminal space on both sides of the existing terminal – the roof elements, added infrastructure for check in counter, baggage make up areas, lounge areas, added passenger amenities and the new VVIP building.

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2.2 Cochin International Airport Pvt. Ltd.

1. The radar facility at Cochin International Airport is expected to be fully operational by December this year. The construction of the NAV-AID building which will house the radar equipment is in the final stages. The equipment is being procured and will be installed by the Airports Authority of India, which is responsible for air traffic management at Cochin International Airport. AAI has designated Cochin International Airport as a lower area control centre as part of restructuring of the Indian airspace. At present, air traffic management at is controlled with the help of radar inputs from (area control centre) and Mangalore in coordination with the flight information centre in Chennai. Once the radar becomes fully operational, the aircraft landing and take-off will be totally under the control of the radar controller, eliminating the need for any judgment by the pilot during these procedures, even under conditions of very limited visibility. This will enhance the safety of operations, besides minimising the holding time of aircraft for landing, thereby saving aviation fuel.

2. Cochin International Airport Ltd. has recorded a profit after tax of Rs 102 crore in 2011- 12 as against Rs 90 crore in the preceding year. Surge in duty-free sales and non- aeronautic revenues has contributed substantially to the revenue growth of during FY-12. The pretax profit also showed a marked improvement from Rs 116 crore during 2010-11 to Rs 134 crore during the current year. CIAL has been consistently generating profits from 2003-04, barely 3 years after its commissioning in 1999.

3. Cochin International Airport Limited has invited Expression of Interest from Solar System Technology Holders to design, install and commission a Solar Photo Voltaic Power System for the terminal building of the airport. This is a pilot project acting as a prelude to the main project which will be taken up later. The plan is to set up the rooftop system to be connected to the existing power grid, so as to reduce the electricity consumption at the airport. The project will be studied prior to the initiation of a higher capacity solar energy generation project proposed to be installed at the car park area and available roof top area of the buildings. The agency will be asked to conduct solar mapping for the airport premises. It will have to prepare a detailed project report and also suggest an appropriate model for implementation of the project.

4. Cochin International Airport has introduced four new self-service check-in kiosks, which allow passengers to check-in, select their seat and print their boarding pass. Passengers flying with Air India and Jet Airways can make use of the facility, while the airport is hoping to encourage more airlines to use the kiosks in the future. The installation of the kiosks is part of Cochin International Airport Limited’s (CIAL) ongoing five-year strategic partnership with SITA, which was signed in 2010. SITA’s passenger bag reconciliation and message distribution solutions have also been installed at the airport to improve baggage handling efficiency and reduce operational costs.

5. Cochin International Airport Limited is set to diversify its activities to the Power Sector. The company has floated a new wholly owned subsidiary company “CIAL infrastructures Limited”. The company is keenly interested in the sunrise sector of “Renewable Energy” which includes solar energy, wind energy and mini-hydel projects.

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2.3 Delhi International Airport Pvt. Ltd.

1. Indira Gandhi International (IGI) Airport on 17th July became the fifth airport in the Asia-Pacific region to receive accreditation for its efforts at reducing carbon emissions. Airports Council International (ACI) accredited the IGI Airport at level 2 - 'Reduction' of carbon emissions under the Airport Carbon Accreditation (ACA) programme. The IGI Airport is the second airport in India after Bangalore International Airport to be accredited at this level.

2. Bird hit cases at the Indira Gandhi International Airport have halved in the last four years. In 2008 and 2009, there were 67 incidents, in 2010 there were 36, in 2011 it was 34 and only 9 cases so far for the present year. To prevent the menace caused by the bird activity, Delhi International Airport Limited has a dedicated team of Bird Aircraft Strike Hazard (BASHM) inspectors along with a team of 80 bird chasers on both sides of the operational runways and 12 sharp shooters armed with acoustic guns that guard’s three operational runways from dawn to dusk.

Furthermore, Sarvatra wildlife team is engaged to facilitate the capturing of stray animals in the airside. Controlled use of fire crackers of low, medium and high decibel and vehicles fitted with radiotelephony and scare crow devices with distress calls to scare birds are also adopted. Maintenance of grass not below 6 inches, to prevent insect visibility as well as covering of drains within the airport boundary with wire meshing is being proposed. Methods such as distribution of ‘Do’s and Don’ts’(leaflets), and the importance of not feeding the birds and stray animals as well as awareness campaigns within the airport by means of posters, making the workers aware on consequences that could lead to bird strike are used to spread information and educate the common people.

3. Indira Gandhi International Airport had a ‘soft launch’ of the Phase I of the brand new cargo terminal which would double the airports cargo handling capacity to 2 million metric tonne after terminal is fully operational. The area of the new terminal is 70,000 sq. mts. In Phase I the terminal has a capacity of 6 lakh MT annually. The new terminal will be operated by Delhi Cargo Service Center (DSDC).

4. Several major international airlines such as Lufthansa Group Airlines (including Australian and Swiss International), Virgin, KLM, Air France and United has filed a petition in the Delhi High Court challenging the steep increase in airport charges and is seeking the April order passed by the airport economic regulator quashed. The airlines have termed DIAL’s 334% increase in airport tariff illegal. The airlines, between them, carry about 30% of the outbound traffic from India.

5. Supreme Court on 20th July, has issued notices to the centre, the Airports Authority of India (AAI) and the Airport Economic Regulatory Authority Appellate Tribunal (AERAAT) on a petition challenging the levy of the Airport Development Fee (ADF) of Rs 200 for domestic and Rs 1300 for international passengers by the Delhi International Airport Limited (DIAL) at the Indira Gandhi International Airport, New Delhi on an appeal filed by Consumer Online Foundation against the order passed by the AERAAT. The Supreme Court said that the Airport Development Fee (ADF)

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collected from passengers was ‘a little unreasonable’ and suggested that VIPs be charged like in abroad for use of special lounges instead of burdening common travelers.

6. Delhi International Airport Limited has an extensive arrangement of power back-up and multiple redundancies. The complete IGI airport is broadly divided into 3 areas for the backup power requirement.

a) Terminal 3—42 MW (14 No. of 3 MW). The 14 engines attached to generators develop more than 56000 horsepower. That is equivalent to the power output of 1522 Maruti 800 cars b) Terminal 1, Terminal 2--2 nos. of 1 MW and 1 nos of 0.50 MW. c) Airside- 6 substations, each having 2 sets of 1.25 MW. This offers complete, multiple redundancy ensuring that critical lighting on runways, taxiways and elsewhere on the airside is never compromised.

The total installed DG capacity at IGIA is 59.5 MW. The capacity is well in excess of actual loads.

7. Delhi International Airport Limited has initiated GMR-IGI Airport Awards with the aim of recognizing the key performers in the aviation industry who work relentlessly to keep the airport operations running. The first edition of the awards was presented on 26th July in 28 diversified categories with one special recognition award at a gala function in Gurgaon. The event saw the participation of almost 500 guests from all major stakeholders including AAI, CISF, Customs, Immigrations, Passenger and Cargo Airlines, Cargo Operators, ground handlers, JV partners, Retail partners, F&B and several other concessionaires. The entire award evaluation process was carried out and validated by renowned auditors, KPMG.

2.4 GMR Hyderabad International Airport Pvt. Ltd.

1. GMR Hyderabad International Airport Limited (GHIAL) has started a series of familiarization and orientation programme for Radio Cab Drivers of Meru and Sky Cabs on airport operations, services and facilities at RGIA with an objective to bring attitudinal change in the Radio Cab drivers and make them as Rajiv Gandhi International Airport’s (RGIA) unofficial brand ambassadors and also inculcate a sense of belongingness in them towards the airport.

Every Tuesday two batches of around 30 Radio Cab drivers from Meru and Sky Cabs are being taken for a tour of domestic and international terminal by airport officials and being briefed on various facilities, services and useful information for passengers such as ATMs, self-check in counters, retail stores, food outlets, Duty Free shops, smoking lounges and drinking water fountains etc. At the end of the tour, drivers are educated on airport functions, security concerns, do's and don’ts at the airport, how to start a positive interaction with passengers, enhancing passenger experience, cab management on ramps etc. This programme is designed for nearly 800 cab drivers from Meru & Sky Cab and since its inception, oriented 120 drivers so far.

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2. GMR Hyderabad International Airport Limited (GHIAL) has recently opened an ‘Experience Zone’ in the passenger terminal building, presenting the next level of retail experience for passengers. With inclusion of the zone, Hyderabad Airport can boast of all reputed and diverse retail brands which passengers can explore at leisure, also enjoying the world class ambiance around it. This great effort, which is part of the Phase-1 Terminal Modification project, has been greatly appreciated by passengers, stakeholders and media.

3. GMR Hyderabad International Airport Limited (GHIAL) celebrated Parent’s Day on 4th Sunday of July at the airport with great enthusiasm.

4. GMR Hyderabad International Airport Limited (GHIAL) organized a “Free BP and Diabetic Testing Camp” for passengers at the airport recently which commendably attracted close to 650 passengers and has given the terminal operations team an impetus to explore such other facilities for passengers in the near future as well, with the support of Apollo Hospital.

5. GMR Hyderabad International Airport Limited (GHIAL) arranged for kindergarten students of Sri Vidyanjali High School along with their teachers to the airport to convey ECO friendly messages to the airport community and departing passengers. The children carried with them placards with environmental slogans and interacted with all. The GHIAL acknowledged the children’s endeavour and energy by presenting them with souvenirs.

6. GMR Hyderabad International Airport Limited (GHIAL) is working towards making the airport a ‘silent airport’ to make transit for passengers even more comfortable. The airport authority drafted a public announcement policy which was discussed with the airlines and ground handling agencies for a consensus in its implementation. This now limits the number of announcements considerably against the previous numbers. Certain steps are being taken to ensure success of the concept: o Audits carried out regularly o Replacement of all microphones at the boarding gates with Shure microphones, thus reducing the decibel levels o Reduced speaker outlook levels at critical areas o Airline and ground handling staff regularly being sensitized o Rewards given to the staff making best announcements as per decided norms

2.5 Mumbai International Airport Pvt. Ltd.

1. Chhatrapati Shivaji International Airport has commissioned a new Rapid Exit Taxiway (RET) N5 for Runway 09 on July 4. The new taxiway RET N5 is located on the northern side of primary runway 09-27 and will reduce the arrival runway occupancy time (ROT) by 9- 10 secs. The location of this taxiway has been aptly designed (located at a distance of 2145 m from the threshold) to facilitate all wide-body aircraft to vacate runway 09 after landing with ease. RET N5 is capable of handling Code-F aircraft (such as A- 380 and others alike) has a length of 415 mtrs. The first flight to utilize the new RET N5 was a Boeing 737 aircraft which was welcomed with a “Water Cannon” salute.

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7. Mumbai International Airport Limited has opened up its commercial opportunities for business. It has released Requests for Quotations (RFQ’s) for Food & Beverages Concessions & Sale of Spaces for Advertising which will be followed by Duty Free and Specialty Retail, with Request for Proposals (RFP’s) to follow. This is the first of several things to follow which will go on to make the experience at Terminal 2, truly world class.

8. Mumbai International Airport Limited has started levying penalties on private jets for over staying at Chhatrapati Shivaji International Airport form July 15th and the penalty charges are to range from Rs 1,000 and Rs 15,000 per hour. The fine is to discourage unauthorized parking at the airport.

9. Mumbai International Airport Limited has moved a criminal court over bounced cheques by Kingfisher Airlines.

10. Mumbai International Airport Limited has issued a tender for the construction of the structure on which PIDS will be installed. The Perimeter Intrusion Detective System (PIDS) is a combination n of three kinds of surveillance system, wherein Closed-Circuit Television (CCTV) cameras, infrared and radio frequencies are backed by a control room. Any kind of intrusion sends an instant alert to the security agencies. It also gives the exact point of entry of intruders which helps security forces reach the spot quickly.

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3. AIRLINES

Religare Group has launched a Scheduled ‘’ which started passenger services from July 23rd with daily flights between Amritsar and Chandigarh. Air Mantra plans to expand its network to connect various smaller cities including Jammu and Dharamshala. At present, the airline currently has two exclusive 17-seater Beechcraft 1900D aircrafts that have been personalized to make every seat a window-cum-aisle seat.

3.1 Air India

1. Air India is planning to hire junior pilots from overseas markets, a move that may trigger policy change as the current regulations do not allow recruitment of expats for the position.

2. Air India has stopped the practice of using caged rats to test the fumigation effectiveness in its aircraft after protests by groups campaigning for prevention of cruelty against animals. The airline is now relying on gas concentration meters.

3. The 58-day old strike by over 400 Air India union pilots who fly international routes ended late on 3rd July after the Indian Pilot’s Guild decided to call off their agitation. The decision came after the pilots assured the Delhi HC that they would call off their stir within the next 48 hours. AI Management has constituted a three-member committee which include high-level officials to look into the reinstatement of 101 sacked pilots on a case-to-case basis. As on 24th July, Air India has reinstated 9 of 101 pilots and cases of the remaining pilots would be considered within 4-6 weeks.

4. AI board on 3rd July discussed the feasibility of offering voluntary retirement scheme (VRS) to some of its 29,000 employees, funding requirements and selling old aircraft among other issues was discussed. The VRS is part of both the Dharmadhikari Committee report in human resource policies and the turnaround plan the management had submitted to the government for the Rs 30,000 crore cash infusion by the centre.

5. Air India plans to normalise international operations by mid August, Air India may stand to lose another Rs 250-300 crore as the 340 pilots who were on strike may get to fly only in early August as the pilots will have to get their fitness checked by Doctors and undergo refresher training and a mandatory route flying check. Due to the strike Air India suffered a loss of around Rs 550 crore.

6. Air India management would begin the process of stationing pilots as per AI’s operational requirements so as to avoid wastage of time and money in ferrying pilots to operate flights from Mumbai to the capital. 75% of the flights operate form Delhi while 75% of the pilots are based in Mumbai so the pilots fly in as passengers from Mumbai to operate flights from Delhi and return the same way. Also when the pilots fly as passengers for operating flights that flying time also goes towards their flying duty time limitation and limits operational time.

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7. Air India is planning to seek an additional financial support of over Rs 1,000 crore from the government to offer voluntary retirement scheme (VRS) to over 5,000 employees. This is in addition to the Rs 4,000 crore that the government has already allocated as budgetary support.

8. Air India earned Rs 2,900 crore for the quarter April-June 2012 which is 20.8% rise or Rs 500 crore more than the corresponding period last year. The increase in revenue was the result of the various marketing initiatives and offers made to attract customers and the Kingfisher issues.

9. The Government has appointed Syed Nasir Ali as joint managing director of Air India.

10. Air India has introduced a new Madurai-Kochi service.

11. Air India has invited merchant bankers to manage its proposed Rs 7,400 crore issue of 19 year bonds to be priced at 9.50%. The bonds will be paid half-yearly, yielding 9.85% on an annualised basis.

12. Air India is planning to sell is collection of art works which include hundreds of paintings, sculptures, antique pieces, toy planes and other artefacts and are expected to fetch at least Rs 300 crores.

13. The board of Air India has approved an Rs 800 crore package to facilitate voluntary retirement of its employees.

14. Air India revenue rose 17.8% in April-June quarter. In June, the airline posted a 1.2% growth in passenger revenue.

15. Group of Ministers (GoM) on 25th July cleared an undisclosed amount of compensation that Boeing has offered to AI for more than 4 year delay in delivering the Boeing 787 Dreamliner. The decision of the GoM will now be placed for Cabinet Committee on Economic Affairs (CCEA) approval.

16. Air India is launching e-gift coupons on Rakhi which can be redeemed for tickets to domestic destinations.

17. has launched new flight operations schedule from Mangalore to Mumbai and Middle East. The Mangalore-Kuwait-Mangalore flight will operate on three days in a week.

18. Delhi High Court on 31st July issued notice to the Indian Commercial Pilots Association on an appeal by Air India against an order by a Single Bench which had stayed training co-pilots to directly become commanders on advanced wide-bodied Boeing-777, Boeing- 787 and Boeing-747.

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3.2 Kingfisher Airlines

1. Promoter holding in Kingfisher Airlines has decreased to 35.86% on conversion of debentures into equity by corporate entities. Promoter holding was 43% as on April 24th and was over 50% last fiscal.

2. ICICI Bank has sold its entire Rs 430 crore debt exposure in the airline to a debt fund managed by Srei Venture Capital Limited (SVCL).

3. On 12th July LKP Merchant sold one crore shares of Kingfisher Airlines for more than Rs 10 crore or Rs 10.41 apiece through an open market transaction. On 11th July, LKP Merchant Financing sold 65 lakh shares of Kingfisher Airlines for Rs 6.85 crore or Rs 10.54 apiece through an open market transaction. On 3rd July, LKP Finance sold 81 lakh shares of debt-ridden Kingfisher Airlines through a bulk deal on NSE which was executed at Rs 12.01 apiece valuing the transaction at Rs 9.72 crore.

4. Kingfisher Airlines lenders may soon sell its two properties in Mumbai and Goa to recover some part of the loan worth over Rs 7,500 crore. HDFC Securities has been appointed to do a valuation of the two properties. Consortium of 17 Banks held meeting with airlines officials on 5th July and asked the airline to submit a report on the steps taken to improve its operations and the challenges faced by the company in the next two weeks.

5. Directorate General of Civil Aviation is going to evaluate the overall condition of Kingfisher Airlines. The Airlines flying license could be suspended if it fails to maintain the schedule it is operating for some time.

6. Shares of Kingfisher Airlines has dropped below its paid-up value of Rs 10 as it ended at Rs 9.94 on the Bombay Stock Exchange and Rs 9.95 on the National Stock Exchange under relentless sell-off by investors on 16th July 2012.

7. Government would soon issue a notice to Kingfisher Airlines asking it to clear all service tax dues along with penalty for the default. Kingfisher Airlines owes about Rs 70 crore in service tax.

3.3 SpiceJet

1. SpiceJet has announced that it will make New Delhi its third regional base after Hyderabad and Chennai for its 70-seater Bombardier Q400 aircraft.

2. SpiceJet is waiting for Airports Authority of India’s permission to introduce flights between Bangalore and Hubli starting August.

3. SpiceJet will start flights to six countries which is Kabul (Afghanistan), Riyadh (Saudi Arabia), China, Hong Kong, and Male (). From August 14th, SpiceJet will start a three times a week service to Kabul from Delhi, this will be the 4th

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international destination of SpiceJet after Kathmandu, Dubai and . SpiceJet will also launch a daily flight connecting Dubai to Delhi.

4. SpiceJet has started operation of direct flight between Amritsar and Srinagar from 12th July.

5. SpiceJet has launched new flight services connecting the cities of Amritsar, Chandigarh and Srinagar to Delhi from 13th July. The Airline offers two direct flights on the Delhi- Chandigarh-Delhi route and one Delhi-Chandigarh-Srinagar-Delhi connecting flight.

6. In the Southern region, SpiceJet has introduced four new flights from Gannavaram airport (Andhra Pradesh) to Chennai and Bangalore form July 19. The airline also launched two daily direct flights from Delhi to which would be operated by new Bombardier Q400 NextGen turboprop aircraft form July 19.

7. SpiceJet has officially sought the permission of the AAI to operate the services to Bangalore and Chennai with Kingfisher discontinuing its flights between Vijayawada and Bangalore and the jet Airways (Jet Konnect) operating s single flight to and from Bangalore via Hyderabad based on demand.

8. SpiceJet is planning to raise money from Private Equity’s to fly more roués by purchasing more planes.

9. SpiceJet reported a profit after tax of Rs 56.15 crore for the quarter ended June 30 while for the same quarter last year, SpiceJet reported a loss of Rs 71.96 crore. The revenue increased by 51% to Rs 1,407 crore compared with Rs 931 crore previously.

10. SpiceJet is leasing out two of its Boeing aircraft to a Saudi Arabia-headquartered budget airline Nas Air.

3.4 Jet Airways

1. Jet Airways has signed a 10-year maintenance agreement valued at $150 million with GE Aviation, which will cover engine maintenance, repair and overhaul of engines that will power the airline’s Airbus A330 fleet. The agreement will help Jet provide flexibility to decide when to overhaul its engines as the planes are customised and developed jointly.

2. Jet Airways has introduced JetEscapes packages for corporate travellers and guests seeking a holiday break. The package range from overnight stays for individuals and corporate groups to monsoon packages and luxurious getaways.

3. Jet Airways has been permitted to launch seven weekly flights to Dhaka, Chittagong and Dar-es-Salaam.

4. Jet Airways had sought permission to join the world’s largest airline grouping, Star Alliance Services GmbH. But the Government wants the alliance, comprising of 27

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airlines across the globe, to decide on Air India’s membership before considering other applications.

3.5 Indigo

1. InterGlobe Aviation Ltd. and Pratt and Whiney Inc. has signed an agreement for the purchase of 300 PurePower PW1100G-JM engines for 150 Airbus A320neo family planes. The agreement includes additional options for buying more engines and a long- term maintenance agreement. Deliveries are scheduled to begin in 2015.

2. IndiGo has received an award for the Best Low Cost Airline in Central Asia and India and also for the Best Airline Staff Service in Central Asia and India at the annual Skytrax World Airline Awards.

3. Indigo has been allowed to operate 63 weekly flights, including a daily service to Kathmandu and Jeddah.

4. IndiGo will launch a second daily service from Delhi to Bangkok and a daily flight to Dubai form Delhi in August.

5. IndiGo is pushing the government to offer incentives such as discounts on fuel and lower charges to the airlines that performs well.

3.6 GoAir

1. GoAir has introduced New Delhi-Ranchi-Patna-Delhi flights.

2. GoAir is planning to raise $200 million (Rs 1,100 crore) in equity to pare debt.

3. GoAir is planning to raise money from Private Equity’s to fly more roués by purchasing more planes.

4. GoAir has asked for permission from the Ministry of Civil Aviation to be allowed to fly international with its present fleet size of 12 aircraft. The criteria for the schedule operator to go international are that the airline should have been in operation for last 5 years and it should have 20 aircraft.

3.7 International Airlines

1. All Nippon Airways (ANA) is raising up to $2.6 billion in a share sale to buy new planes and to bolster its finances as it faces a resurgent rival in Japan Airlines and increased competition from budget airlines.ANA is raising the funds before Japan Airlines launches its initial public offering slated for September 2012 and estimated at around $8 billion.

2. All Nippon Airways (ANA) is launching flights from Delhi from 29th October, the booking for which would from August. ANA has been operating daily flights between Mumbai and Tokyo since 2007 and Delhi would be its second destination in India.

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Through these flights, the airline plans to connect major destinations on the American west coast such as Seattle, Los Angeles and San Francisco.

3. Tiger Airways is expanding its operations to Hyderabad’s Rajiv Gandhi International Airport (RGIA) from September 28th. The airline would operate between Singapore and Hyderabad five times a week. This new addition marks the sixth Indian destination for Tiger Airways after Bangalore, Chennai, Kochi, Thiruvananthapuram and Tiruchirappalli.

4. Tajik Air, national carrier of Tajikistan, has appointed Air India SATS Airport Services (AISATS) as its official ground handler at Delhi International Airport and has launched a passenger flight every Friday using a Boeing 737 aircraft. AISATS has started providing ground handling services to Tajik Air’s flights to India from Dushanbe.

5. Pegasus Airlines is waiting for Airports Authority of India’s permission to introduce flights between Bangalore and Hubli.

6. Armavia, Armenian Airline would be operating flight twice a week on the Yerevan – Amritsar route from July 25th 2012.

7. Qatar Airways has been ranked as the World’s best airlines at the Skytrax World Airline Awards, for the second year in a row.

8. Emirates Airlines is offering a 15% discount from Chennai to over 50 destinations for Economy and Business Class between July 16th and 23rd.

9. British Airways (BA) is exploring opportunities for extending its direct flight services to tier-II cities in India and is likely to explore regional tie-ups with airlines like Jet Airways, IndiGo, GoAir, SpiceJet etc.

10. Lufthansa has chosen India as second market worldwide for the all-new ’Queen of the Skies’ Boeing B747-8 debut on August 6th 2012 from Delhi to Frankfurt. The B747-8 is configured with 8 first-class, 92 business class and 262 economy class seats.

11. From September 2nd 2012, Lufthansa’s first class passengers on the Munich-Mumbai sector can travel in better comfort as the airline will be served by refurbished A330-300 aircraft fitted with the new Business Class seat which will have 6.5 ft long bed.

12. British Midland International has decided to withdraw it’s thrice a week flight between London and Amritsar from October 27 which will hurt the export of perishable goods from Punjab and Himachal Pradesh to Europe.

13. South African Airways will start daily services between Mumbai and Johannesburg from the current five flights a week from 3rd October 2012 subject to government approvals.

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4. CARGO

1. Air India SATS Airport Services (AISATS), a joint venture between Air India Limited and SATS Limited has been awarded the TAPA (Transported Asset Protection Association) certification for its Bengaluru Cargo Terminal, making it the first Indian airport services provider to be certified for the highest security requirement i.e. TAPA Freight Security Requirements Class A.

2. CBEC has developed an “Interactive Customs Tariff” application as part of its ongoing trade facilitative measures. The interactive website will enhance public access to information on duty payment and other regulatory requirements for clearance of goods, when imported into India. Approved exporters, importers and freight forwarders to be given preferential treatment in terms of faster clearance and less physical inspections along with other benefits.

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5. TRAFFIC

1. According to Directorate General of Civil Aviation, domestic air traffic fell 3.84% in June 2012 over the same month last year, after falling 0.9% in May 2012. Air Traffic has grown just 3.7% in Jan-June, 2012 over the same period last year. The volume of domestic passengers declined in June to 5.11 million from 5.31 million over the same month last year.

2. DGCA has said that passengers flown by domestic airlines had declined to 5.44 million in May 2012 against 5.49 million in May 2011 which is a fall of 1%. Domestic passenger traffic seems to have fallen about 5% year-on-year because of increased fares, which are 30% higher than last year.

3. Passengers carried by domestic airlines during Jan-June 2012 were 309.16 lakhs as against 298.10 lakhs during the corresponding period of previous year thereby registering a growth of +3.71%

Growth 2011 2012 YoY - (+3.71%) MoM - (-3.84%) 350 298.1 309.16 300 250 200 150 100 53.12 51.08 50

Passenger Carried (in lakhs) (in Carried Passenger 0 YoY MoM

4. Market Share of Scheduled Domestic Airlines

Air India (Dom), Jet 16.8% Airways, 20.7%

Jet Lite, IndiGo, 6.7% 26.0% Kingfisher, 4.2%

Spicejet, GoAir, 18.6% 6.9%

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5. Passenger Load Factor of Scheduled Domestic Airlines

May-12 Jun-12 100 90 86.5 79.8 80.4 76.6 80 74.2 86.3 71.3 82

80.5 70 77.1 62.2 78.1 70.6 73.3 60 50 40

Seat Factor (%) Factor Seat 30 20 10 0 Air India Jet Airways Jet Lite Kingfisher SpiceJet GoAir IndiGo

6. Foreign Tourist Arrivals (FTAs) during the Month of June 2012 was 4.32 lakh as compared to FTAs of 4.12 lakh during the month of June 2011 and 3.85 lakh in June 2010. There has been a growth of 4.8% in June 2012 over June 2011 as compared to a growth of 4.6% registered in May 2012 over May 2011. FTAs during the period January- June 2012 were 32.37 lakh with a growth of 7.4%, as compared to the FTAs of 30.15 lakh with a growth of 10.8 % during January-June 2011 over the corresponding period of 2010.

7. Foreign Exchange Earnings (FEE) during the month of June 2012 were Rs. 6485 crore as compared to Rs. 5440 crore in June 2011 and Rs 4751 crore in June 2010. The growth rate in FEE in ` terms in June 2012 over June 2011 were 19.2% as compared to 14.5% in June 2011 over June 2010. FEE from tourism in ` terms during January-June 2012 were Rs.43760 crore with a growth of 24.4%, as compared to the FEE of Rs. 35163 crore with a growth of 12.1% during January-June 2011 over the corresponding period of 2010.

8. According to the data released by Airports Authority of India (AAI) for the period of April-May, 2012, International passenger traffic saw an increase of 4.8%. Mumbai stood third from the bottom of the rating chart in terms of passenger growth of 5.1%. Tier II cities like Guwahati saw an increase of 19.8%, Coimbatore 13.9%, Cochin 13.5%, Coimbatore 13.5%and Lucknow 11.3% lead the growth.

9. According to the International Air Travel Association, demand in the domestic air travel market in India shrank 0.7% in June 2012. Demand has slowed all over the world since the beginning of 2012.

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6. SOURCE

1. Airport Economic Regulatory Authority Appellate Tribunal (AERAAT) http://compat.nic.in/aera.html

2. Ministry of Civil Aviation http://www.civilaviation.gov.in/

3. Press Information Bureau http://pib.nic.in/newsite/mainpage.aspx

4. News Articles published in various newspapers.

5. Bangalore International Airport Limited

6. Cochin International Airport Limited

7. Delhi International Airport Limited

8. GMR Hyderabad International Airport Limited

9. Mumbai International Airport Limited

Association of Private Airport Operators (APAO), 710, 7th Floor, Surya Kiran Building, 19 Kasturba Gandhi Marg, New Delhi, India. Ph: +91-11-41510916, Fax: +91-11-23329153 Web: www.apaoindia.com, e-mail: [email protected]

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