Indian Air Force:
The procedure for purchasing 126 multi-role combat jets for the Indian Air Force is at the final stage and will be completed shortly. Several frontline jets made by global aviation majors -- including the F-16 and F-18 of the US, Sweden's Gripen and Russia's MiG-35 -- are in the race for the contract. India's light combat aircraft project is very much on and 'there is no question' of it being abandoned. (31 January 2007)

Fee on Air Tickets:
Travel agents across the country are planning to impose a flat service fee on air tickets issued or cancelled. The fee is expected to range from Rs. 100 to Rs. 250 for domestic tickets and Rs. 500 to Rs. 5,000 for international tickets. The country's two prominent travel agent associations-Travel Agents’ Federation of India (TAFI) and Travel Agents’ Association of India (TAAI)-have reached a consensus on imposing the service fee from April 1. Sources said that the exact details of the plan were yet to be finalised. The fee would be imposed in addition to the variable processing charges which customers would already have paid for a ticket.
(31 January 2007)

Mangalore Airport:
The first airbus 320 of 'Indian' airlines is expected to land in Mangalore airport on 7 Feb 2007. Mangalore is the second banking city in India, much ahead of major cities. The place also has the highest number of holy shrines in and around. This district has been adorned and described in the devotional songs and music that is the soul of India. (30 January 2007)

Airbus:
Airbus is in talks with two Indian airlines for a possible sale of super jumbo A380 aircraft. Airbus has so far won just one customer for the A380 in India -- the privately owned Kingfisher Airlines, which is buying five such planes. But the aircraft maker hopes booming air travel in India will drive its airline companies to increasingly look to the 550-seater super jumbo. India is the latest battleground for global aircraft makers who see the South Asian country's booming economy creating demand for a huge number of new jets. According to an Airbus forecast, India will need 1,100 airplanes worth US $105 billion by 2025. India is also upgrading its major airports, including changes to accommodate the super jumbo A-380. (30 January 2007)

Visa-on-arrival:
In a bid to ease visa norms, the government is likely to introduce visa-on-arrival facility at Indian airports soon. The facility would be made available as soon as infrastructure at major airports like Delhi and Mumbai had been upgraded. (29 January 2007)

In-flight Advertisements:
Globally, airlines garner nearly 14 to 20 percent of their revenues through in-flight advertisements. However such advertising has been lagging behind in India since premium brands, which are normally advertised on board, are beyond the reach of the average air traveller in India at present, especially after the successful entry of low cost carriers (LCCs). Private carriers are now looking at attracting advertisers in their flights. Except for Air Deccan which has been advertising products like ICICI Bank credit cards and VIP luggage, and Kingfisher which had earlier tied up with Pepsi, other airlines like Spicejet, GoAir, and Jet Airways are yet to make much headway in this. (29 January 2007)

Sri Lankan Airlines:
Sri Lankan Airlines is in discussions with the Indian tourism department for commencing flights to popular Buddhist destinations such as Bodh Gaya. The island nation's national carrier has rights to fly to 18 new Tier-II Indian cities, and adding Buddhism tourism is very crucial for its expansion in the region. The airlines is also in talks with tour operators to come up with a business plan for Bodhgaya (in Bihar) and if all goes well, the airline may begin a flight there next year. The carrier hopes to have 100 flights into India by the year-end. (29 January 2007)

AI:
A team from Air India will be going to Washington soon to formalise documentation for availing itself of a $6-billion loan from the US Exim Bank for purchase of Boeing aircraft. The team will work on preparing all operative documents for Air India and Air India Express including the master lease agreement that would see the aircraft being leased to a Special Purpose Vehicle from which they would join the respective airlines. The loan constitutes about 85 percent of the cost of the aircraft with the airline tying up the rest of finances from commercial banks.
(25 January 2007)

Kingfisher Airlines:
A move by Kingfisher Airlines offering commission to travel agents on not just basic fare but fuel surcharge as well has ruffled many feathers. The Federation of Indian Airlines (FIA) has been debating the issue for some time now. Kingfisher Airline is the only airline in India, which gives five percent commission to travel agents on not just basic fare but fuel surcharge as well. Other full service carriers such as Jet, Indian and Sahara give five percent commission only on the basic fare. According to the sources, Kingfisher has been asked by FIA to review and withdraw the commission on the fuel surcharge as it is seen as promoting unfair competition. (25 January 2007)

Singapore Airlines:
Singapore Airlines plans to move call center services in India, US, Canada, Australia and New Zealand to save costs. The carrier is in talks with Wipro to take over the services, which include reservations, within this year. The airline, which employs 145 people in the call centres, has yet to determine how many will be dismissed, retained or redeployed. Singapore airlines may join carriers including Qantas Airways Ltd, which are relocating work to India, where labour costs are a 10th of US salaries. (25 January 2007)

Varanasi Airport:
The Lal Bahadur Shastri (LBS) airport at Varanasi is high on Union Civil Aviation Ministry’s agenda for modernisation of non-metro airports in the country. The Airports Authority of India (AAI) recently invited bids to short-list contractors for construction of Rs 64.98-crore new terminal building at the Varanasi airport. The contractors have been given 15 months to complete civil and electrical work for the building. It had also invited applications from established tour operators to start a full-fledged ‘car rental’ service at the Varanasi airport. The Varanasi airport receives about two to three foreign charters in a month. The Thai Airways is also operating a direct flight to Bangkok from the holy city. (24 January 2007)

Air Services to Mysore:
The airport at Mandakalli on the outskirts of the city toward temple town of Nanjangud, would cater to ATRs and aircraft that could carry about 70 passengers. However, in a later phase the facilities would be enhanced to handle Boeing and Airbus aircraft. Vishal Infrastructure Company, which had been awarded the tender for civil works by AAI, would build two runways, apron, taxiway and other allied works under the supervision of AAI officials. With a 24-month dead line set for completion of Airport work, the air traffic was expected to commence in January 2009. A terminal building with a capacity to accommodate 200 passengers would be ready by the time flights began operating out of Mysore.
(24 January 2007)

Guidelines for Airport Tariffs:
The finance ministry has called for ‘transparent guidelines’ to determine airport tariffs. The Airports Economic Regulatory Authority (AERA), proposed to be set up soon, should finalise clear guidelines for fixing tariffs, keeping in mind the interests of consumers while ensuring that airports are run on a commercial basis. A Bill to establish the AERA is expected to be introduced in Parliament during the Budget session. The finance ministry has suggested that apart from fixing tariffs, AERA could provide inputs for the overall tariff policy along the lines of suggestions provided by TRAI. (24 January 2007)

SpiceJet:
SpiceJet is planning non-stop flights between Calcutta and Goa from the winter of 2007. The airline also plans to fly to Jaipur and Ahmedabad from Calcutta in a few months. According to the initial plan, the flight will leave Calcutta at noon and reach the seaside destination at 2.30 pm. SpiceJet’s Calcutta-Hyderabad flight will leave Calcutta at 2.15 pm and reach the destination at 4.15 pm. The lowest fare on the route for a round trip is Rs 1,800, excluding taxes. (23 January 2007)

Air India, Indian Merger:
According to government sources, global consultant Accenture has already begun working on the second stage of the Air-India and Indian merger. After providing four different options for the merger, Accenture has started to move on the amalgamation of the senior management of the carriers. Air-India has 15,416 employees and Indian Airlines has over 18,300. The merged entity will be headed by a group CMD and have a board of directors. One-third of the board will be independent members who will be neither from Air-India nor Indian Airlines. The other major issues are tax exemptions and the high stamp duty incidence. (23 January 2007)

Finnair:
Barely three months after commencing its operations to India, Finnair would increase the frequency here four times and add Mumbai as the second destination after New Delhi. Moreover, in mid-May, the current three-weekly frequency for flights to the Indian capital will be increased to daily. With this, India will be connected with 12 flights to Finland by the carrier, which boasts of running the shortest route between India and any EU country, taking barely six-and-a-half hours. (23 January 2007)

Jet Airways:
Jet Airways is talking to several leading private equity firms to raise US $400 million through qualified institutional placements for its aircraft acquisition plan. The qualified institutional placements are aimed at improving the airline's balance sheet besides raising 15 percent of the cost of its US $2.5 billion bill for 20 wide-bodied aircraft for international operations and 10 Boeing 737s for domestic operations. The rest of the bill will be funded by debt. The qualified institutional placement could result in a dilution of the promoters' equity by 10 percent. The promoters currently hold 80 percent in the airline. (22 January 2007)

Indian:
Even as the proposed merger of Air India and Indian gets under way, both are being wooed by global aviation alliances to join. Indian was recently invited to join the 10-member airline grouping SkyTeam by the president and COO of Air France. The SkyTeam has as its members Air France, KLM, Continental, Northwest and Aeroflot among others that together operate more than 14,600 flights daily to 728 destinations in 149 countries. (22 January 2007)

Revised Norms:
The government of India has tightened the norms for airline operations in the country by increasing the subscribed equity capital needed for starting a scheduled airline with five large aircraft from Rs. 30 crore to Rs. 50 crore. The new norms will be applicable with retrospective effect for those having aircraft weighing 40,000 kg each. The government has stipulated that such airlines will have to pump an additional Rs. 20 crore into the subscribed equity capital for every five additional aircraft they induct. However, it would not affect private airlines like Kingfisher that has a subscribed equity of Rs. 372 crore and a fleet of 23 aircraft and the low-cost airline SpiceJet, which has a current subscribed equity base of Rs. 185 crore and a fleet of 10 Boeing 737s. (22 January 2007)

Air India:
Air India has plans for expansion in the freight traffic that is largely under the domain of international carriers. AI will introduce two freight carriers in June-July to Frankfurt, Paris and Shanghai from Bangalore and Mumbai to begin with. The carrier would soon have a fleet of at least 15 dedicated freight carriers, including eight A 310s, two Boeing 747-300s and five Boeing 737-200s, besides an option to take two Boeing 747-400s on lease. AI hopes to raise its market share in the international cargo traffic from 10 percent to 30 percent after deploying 15 dedicated aircraft. (20 January 2007)

Surat Airport:
According to Civil Aviation Minister Praful Patel, Surat will have a airport by May this year. Talking to reporters after inspecting the airport being built at Surat, he said it was need for the future development of the city. The people of Surat and especially those associated with the diamond business have been demanding an international airport for long. Replying to a question whether the airport will be made an international one, he said the Government is thinking about this. He said, the runway has been increased from 4,500 feet to 7,500 feet and the airport will have facilities for night landings and take-offs. (20 January 2007)

Indian:
Indian is introducing e-ticketing facility for its customers to simplify procedures for issuing tickets. E-tickets will be issued for flights departing from six metros and 11 major cities. 'The initiative will not only help us simplify the business but will also result in extra convenience to passengers,' he said. According to Bruce Hanna, COO of Galileo India, the e-ticketing measure will help travel agents enhance their efficiency and productivity as it will cut down ticketing requirements and printing of flight coupons. 'With our entry on such a large scale, travel agents can now focus on their core competence - travel consultancy and research, rather than issuing and delivering tickets. (19 January 2007)

Small Airports:
The Maharashtra state government has decided to handover 14 small airports and airstrips in the state to private parties for development and maintenance. Currently, these airports are under the control of Maharashtra Industrial Development Corporation (MIDC). Airports Authority of India (AAI) would advise MIDC on the privatisation plan. Mumbai airport privatisation will serve as a model for the MIDC plan. These airports will also have cargo-handling facilities. As Mumbai airport is getting crowded, hangar facilities could be developed at these small airports for repair and maintenance of aircrafts. (19 January 2007)

Airlines Stocks:
After passing through a period of turbulence, airlines are showing promise of a comeback, with the stocks of the listed companies in the sector registering high levels of growth in the last one month. During the one-month period between 18 December 2006 to 16 January 2007, stocks of the three listed airline companies, Deccan Aviation, Jet Airways and SpiceJet, posted an increase of 17.33 percent, 11.84 percent and 5.29 percent, respectively on the BSE. Analysts attribute the growth in share prices to the easing of crude oil prices and the resultant reduction in prices of ATF, an increase in passenger load factor in the month of December owing to the festive season and higher corporate bookings. (18 January 2007)

Air Deccan:
For the second time in a year, Air Deccan overtook state-owned Indian in 2006, making it country’s second-largest domestic carrier. According to preliminary numbers from the aviation ministry, the low-cost carrier’s market share for the peak months of November and December stood at 19.7 percent and 19.8 percent, respectively against 19 percent for Indian. Low-cost carriers have steadily expanded their market shares over the past year. In December, their collective share stood at 32 percent over 20.8 percent at the start of 2006. The Centre for Asia Pacific Aviation (CAPA) says full service airlines are losing 1.5 percentage points of market share every month to low-cost carriers. (18 January 2007)

New Airports:
Six airports will be developed in the tier-II towns jointly by the Airports Authority of India (AAI) and the state government of Hyderabad. Construction of airports at Kadapa and Warangal will be completed within two years and their commercial operation will begin by December 2007. A MoU for the development of these two airports will be signed between the two implementing agencies in the first week of February. The expansion of airports at Visakhapatnam, Vijayawada, Rajahmundry, Tirupati and Puttaparti will be taken up soon. Kingfisher Airlines is expected to commence its operation to Puttaparti on 22 January 2007. In Visakhapatnam, a new runway is built while the re-carpeting of the existing runway and night landing facility, including installation of instrument landing systems, will be completed by the month-end. (18 January 2007)

Travel Agents:
Low-cost carriers are slowly but surely making travel agents redundant, especially for the FIT (frequent individual travellers) segment. Keen to cut corners, low-cost carriers are generally willing to bypass travel agents and encourage personalised online bookings. According to an industry expert, online booking has impacted the revenues of travel agents by as much as 25 percent to 35 percent. According to the Internet and Mobile Association of India (IAMAI), there are 38.5 million Indians online as of now and this number is set to grow to 100 million by 2007-08. Sky-rocketing at a CAGR of 125 percent, the online travel industry is expected to become a $2-billion industry by 2008. (17 January 2007)

Flying Abroad:
Flying abroad could become marginally cheaper with international carriers reducing their fuel surcharge after a fall in price of oil. British Airways recently dropped fuel surcharge from 35 to 30 pounds per sector, which would bring down return economy fares in the Delhi-London route by around Rs 850. Accordingly, air fares from India to New York via London would be down by around Rs 1,700 per person. This applies to long-haul flights that are under nine-hour duration. Japan Airlines too had brought down its fuel surcharge from 1 January this year. Some European carriers said they are monitoring the fuel situation closely, but did not react to BA’s move. Despite recent drop in oil rates, fuel costs remain the second largest cost after employee costs for airlines globally. (17 January 2007)

Fog Policy:
Airlines are in favour of coming out with a common fog policy to counter the fallout of weather-related delays and cancellations. Also high on the discussion agenda of the association of carriers, Federation of Indian Airlines, is compensation to be paid to passengers due to delays and cancellation of flights beyond a certain time period. Some airlines are keen to flag the issue of escalation in rentals and landing charges in various new airports across the country, which directly impacts their bottomline. Carriers are also in favour of bringing in more transparency while charging fuel surcharge from passengers. (16 January 2007)

Jet Airways:
Jet Airways has launched an Interactive Voice Response (IVR)-based payment and ticketing service. This service has been launched through Jet Airways 24x7 call centres wherein customers can now book and pay for their e-tickets over an exclusively customised and secure IVR system. This latest service will allow customers to complete their reservation with their credit cards through a secure gateway and instantly receive their e-tickets via e-mail, subject to certain terms and conditions. Booking and payment through IVR can be made up to two hours prior to the departure time of a flight and ticketing can be done for bookings made at Jet Airways offices in India only. (16 January 2007)

Air Traffic Controllers:
The current staff of air traffic controllers (ATCs) at major airports — 190 controllers in Delhi, and an average of 125 in Mumbai, Chennai and Kolkata — is stretched too thin on the ground. This could jeopardise safety. Unfortunately, estimates suggest that even the planned induction of a thousand new controllers may not be enough. India will need double that number in the next few years to keep pace with the increasing number of flights and new airports. There are several reasons for the understaffing in the ATC ranks, ranging from budgetary problems for training to professional challenges that controllers face. (16 January 2007)