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 Mumbai International Airport Limited………………………………………………..16 3. Airlines………………………………………………………………………………………………………18 3.1 Air India………………………………………………………………………………………………18 3.2 Kingfisher Airlines……………………………………………………………………………….20 3.3 SpiceJet………………………………………………………………………………………………20 3.4 Jet Airways…………………………………………………………………………………………21 3.5 IndiGo………………………………………………………………………………………………..22 3.6 GoAir………………………………………………………………………………………………….22 3.7 International Airlines………………………………………………………………………….22 4. Cargo ……………..………………………………………………………………………………………..24 5. Traffic…….…………………………………………………………………………………………………25 6. Source………………………………………………………………………………………………………27 Page 1 of 27 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 Indian Airlines (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- Page 2 of 27 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 Air India 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 Pawan Hans 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.