Indian Civil Aviation : News , Updates & Discussions

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Keen to buy stake in IndiGo, but not Air India: Qatar Airways CEO

1 min read . Updated: 07 Nov 2019, 12:45 PM IST Rhik Kundu
  • We are very keen to take a stake in IndiGo but we will wait. This is not the right time: Akbar Al Baker
  • As part of the agreement, Qatar Airways will place its code on IndiGo flights between Doha-Delhi, Mumbai and Hyderabad starting today
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IndiGo CEO Ronojoy Dutta with Qatar Airways CEO Akbar Al Baker during the announcement of the strategic code share partnership between the two airlines, in New Delhi on Thursday (Pradeep Gaur/Mint )

Qatar Airways may consider buying a stake in InterGlobe Aviation Ltd-owned IndiGo, but is not interested in investing in debt-ridden Air India, Qatar Airways group chief executive Akbar Al Baker said.

“We are very keen to take a stake in IndiGo but we will wait. This is not the right time. We are not interested in Air India," Baker said, addressing a press conference on Thursday to announce a code share agreement between Qatar Airways and IndiGo.

The code share agreement between Doha-based Qatar Airways and IndiGo will fuel the Indian carrier’s overseas ambitions and improve traffic from the fast-growing Indian air-travel space to the Gulf carrier’s network.

As part of the agreement, Qatar Airways will place its code on IndiGo flights between Doha-Delhi, Mumbai and Hyderabad starting today.

Following the announcement, shares of InterGlobe Aviation had risen 1.45% but pared gains to trade up 0.45% at ₹1,475.05 on BSE.

This is the second code share agreement for IndiGo as part of its growth strategy for international markets. Qatar Airways will place its code on IndiGo operated flights between the said destinations, an IndiGo notice to stock exchanges said.

“We are extremely proud to secure this strategic partnership with IndiGo, the largest airline in one of the world’s fastest growing aviation markets. We believe this agreement will be just the first step in strengthening our relationship," Qatar Airways group chief executive Akbar Al Baker said.

IndiGo chief executive Ronojoy Dutta said the strategic announcement with Qatar Airways will not only strengthen the company’s international operations but boost economic growth in India by bringing in more traffic for trade and tourism through seamless mobility.

“We are confident of a successful partnership, as we extend our signature on-time, courteous and hassle-free service experience to the passengers of Qatar Airways. These are exciting times for the aviation industry and it is our commitment to remain focused in building one of the best air transportation system in the world," Dutta said.

With the collapse of Jet Airways in April 2019, IndiGo’s market share jumped. As on October, the airline continued its market dominance, carrying nearly one in every two passengers, more than recovering the ground it had lost in August. Its market share rose to 48.2% from 47% in August. It was 47.8% in July.

Keen to buy stake in IndiGo, but not Air India: Qatar Airways CEO
 
KIA becomes 1st airport in India with independent parallel runways

1637 hrs on December 6, 2019 marked a significant milestone for the Kempegowda International Airport, Bengaluru (BLR Airport). BLR Airport commenced operations on the new South Runway with the take off of the first flight on the 4000-metres long and 45-metres wide airstrip. This makes BLR Airport the first in the Country to operate independent parallel runways, enabling aircraft to land or take-off simultaneously on both runways.

"It is a historic day for us at BLR Airport as we commenced operations on the new runway," said Mr. Hari Marar, MD & CEO, Bangalore International Airport Limited, operator of the BLR Airport. “Our first runway opened 11 years ago, and became a linchpin for the region's economic development during the last decade. With the aviation industry in India set for exponential growth, two operational runways will provide the thrust required to cater to this demand and further bolster growth of Karnataka and India. The opening of this key infrastructure is the outcome of phenomenal collaboration amongst various stakeholders and implementation of processes and procedures developed through advanced simulations and assessments. The new Runway will further bolster our vision to transform BLR Airport into the new gateway to India," Mr. Marar added.

The South Runway will begin with limited operations before gradually scaling up flight operations. The runway will initially have CAT I certification, and, as operations stabilise, will progressively manage CAT III B operations, enabling landing and takeoff in extremely low visibility conditions. The new runway will be coded RWY 09R/27L, while the existing runway will be renamed RWY 09L/27R (from RWY 09/27).

With safety being top-most priority, BIAL has built an Aircraft Rescue and Fire Fighting (ARFF) Station equipped with advanced, state-of-the-art Crash Fire Tenders (CFTs) to cater to any fire-related emergencies on the South Runway. The Airport fire trucks meet the highest safety standards, replete with innovative product features. Over 100 firefighters were recruited from across Karnataka and expert fire engineers from National Fire Safety College, Nagpur, to strengthen the firefighting squad.
 
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Jewar International airport: Readying for a take-off

By: Arun Nayal | Published: December 26, 2019 6:14:42 PM

With construction work expected to start in February next year, the Uttar Pradesh govt is looking to operationalise the first phase of the airport by 2023.
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In all, 1334 hectares of land is needed for the first phase of the project, of which 82% has already been acquired. (Representative image)

Almost two decades after the plan for a second airport in the National Capital Region (NCR) was conceived, work on the project is expected to get underway in February next year. Keeping in mind the growth in demand, the Uttar Pradesh government has set an aggressive deadline for completion of the Jewar airport project, targeting operationalisation of its first phase by 2023.

Implementation of the Rs 29,561-cr project would take place in four phases, with the last phase scheduled for completion by 2040. When fully operational, the Jewar airport in Greater Noida would be able to handle over 160 million passengers per annum (mppa), making it the largest airport in India. While the Indira Gandhi International (IGI) Airport in New Delhi has a present capacity of around 70 mppa, it is going to increase to 110 mppa once the ongoing project for its expansion is completed.

In what marks a first for the aviation sector since private investment in airports was allowed in 2006, a foreign operator, Switzerland’s Zurich Airport International AG (ZIA), has bagged the contract to develop and operate the Jewar airport, beating the likes of GMR Infra, Adani Enterprises and Fairfax Holdings. Outbidding its rivals by a significant margin, ZIA quoted a per passenger fee (PPF)—the critical criterion in the bidding process—of `401. Apart from operating the Zurich Airport in Switzerland, ZIA runs the Curacao International airport in Carribean Islands, the Bogota airport in Colombia, two airports in Chile and four in Brazil.
India remains one of ZIA’s strategic investment markets. It held a 17% stake in the Bengaluru Airport until 2017, when it exited the project. It also bid for the six Airports Authority of India (AAI) airports that went under the hammer in February.

Commenting on the entry of a foreign player in the sector, Satyan Nayar, secretary general, Association of Private Airport Operators, says, “it will help bring in investments and international experience, leading to greater competition among operators. It also reflects the attractiveness of the Indian aviation sector despite hiccups like Jet Airways.”

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In all, 1334 hectares of land is needed for the first phase of the project, of which 82% has already been acquired. The total compensation to be distributed among landowners is Rs 3,167 crore, out of which Rs 2,546.95 cr has been distributed, according to the state government. The Yamuna Expressway Industrial Development Authority (YIEDA), the nodal agency for the project, has earmarked more than 5,000 hectares of land for the facility.

Experts have stressed the need for speedy acquisition of land by the UP government if the project is to meet timelines. “It is important that all external connectivity issues are addressed on war footing and an unencumbered site for development is made available to the concessionaire at the earliest,” says Jagannarayan Padmanabhan of CRISIL Infrastructure Advisory.

Jewar International airport: Readying for a take-off
 
With Demand Rising, Airlines Add Flights to India

More companies are setting up shop in the country, and more Indians who live elsewhere are returning to visit. Plus, tourism is growing.

By Perry Garfinkel
January 13, 2020
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The airport in Mumbai. In the last few years, more than 20 of the 80 international airlines that fly to India have added service. Photo Credit : Atul Loke

Singapore Airlines added nine weekly flights to India last year, bringing its total to 104. Air France-KLM is increasing its seat capacity on Indian flights by 25 percent this winter. United Airlines has just begun offering nonstop seasonal daily flights from San Francisco to Delhi. And Delta Air Lines began nonstop service between Kennedy International Airport in New York and Mumbai in December.

In the last few years, more than 20 of the 80 international airlines that fly to India have added service, in some cases through arrangements with other airlines, called code sharing. Travel between the United States and India increased 10.3 percent from the first half of 2018 to the first half of 2019, American Express Global Business Travel reported.

At this pace, India is expected to become the third-largest aviation market by 2024, behind China and the United States, according to the Center for Aviation, a company that provides market intelligence to the aviation and travel industry.

The uptick in flights, experts say, is the result of a variety of economic, social, immigration and travel trends. More international social media and tech companies are setting up shop in India or increasing their staff. A growing number of Indians are living and working in the United States, Canada, Britain and elsewhere, and that means more homeland visits for traditionally close-knit Indian families.

Tourism continues to rise. The contribution of travel and tourism to India’s gross domestic product — the broadest measure of goods and services produced in India — is expected to increase to $492.2 billion in 2028, from $234 billion in 2017. The World Travel and Tourism Council ranked India third among 185 countries in terms of tourism’s total contribution to the national economy in 2018. It was seventh in 2016.

The international airlines have also increased the flights in the wake of the collapse of Jet Airways in April 2019, which in 2018 accounted for nearly 20 percent of passengers flown by Indian airlines, and the slow decline of the Indian government-owned carrier Air India.

While there are signs of an economic slowdown in India, business travel to India remains strong. And driving that travel is bilateral trade, said Gunjan Bagla, managing director of Amritt Ventures, a company in Malibu, Calif., that helps Western companies market their products and services to India.

“When I started my company in 2003, bilateral trade between India and the U.S. was $16 billion,” said Mr. Bagla, who is also the author of “Doing Business in 21st Century India.” “Now it’s $142 billion. That means more executives are flying back and forth hashing out deals face to face.”

In addition, he said, he sees indications that the Indian government “has become more business friendly.”

Raymond Kollau, the founder of the aviation research agency Airline Trends, said that while studies showed that well-established aviation regions like Europe and North America would continue to grow, “the global economic center of gravity is shifting from the West to emerging Asian countries, which means more airlines are looking east before they look west.”

He cited an Airbus forecast of a steeper increase in air trips per capita in India and China from 2018 to 2038 than in the United States. The forecast attributed the rise to a faster-growing middle class in emerging countries than in mature Western nations.

Stéphane Ormand, the vice president and general manager of Air France-KLM USA, said the economic growth in India, despite fluctuations, still exceeded China’s. “Basically,” he said, “that’s triggered our focus on India now.”

He continued: “It was very different 15 years ago, when China was growing fast. Now, India is growing faster than China. Their improved infrastructure — roads, airports, electricity, better connectivity — all make traveling and working there easier.”

Mr. Ormand singled out the Texas market, with its oil, technology and medical companies and their ties to India.

Not only are airlines adding flights to and from India, they’re also bringing more Indian culture to the in-flight experience. Many are offering more films in regional dialects and menus with dishes that reflect India’s diverse culinary tradition.

British Airways, which last summer increased its weekly flights between India and London to 56 from 49, offers films in Hindi, Tamil, Marathi, Punjabi, Telugu and Bengali. Lufthansa, which already operates daily nonstop flights from Frankfurt and Munich to four Indian cities and will start five-day-a-week flights in April between Munich and Bangalore, shows films in Telugu, Tamil and Hindi, along with five television shows in Hindi.

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Manny Chohan at the Etihad Airways lounge at Kennedy Airport in New York. He travels to India two or three times a year for business. Credit : Tonje Thilesen

Manny Chohan is the dream target of these airlines — business traveler, family visitor and tourist. Born in the Indian state of Punjab, Mr. Chohan, a naturalized citizen of the United States, has lived in New York for 35 years. The executive vice president of revenue and operations for Dream Hotels, based in New York, he travels two or three times a year to India to look for property development deals. He adds quick visits to his relatives in Punjab, but also goes with his whole family on longer stays to see others throughout India and to take side trips to historic sites.

Mr. Chohan said he flew on Etihad Airways because it offered him the greatest number of options to cities in India from New York, connecting through Abu Dhabi. Etihad, the second-largest airline in the United Arab Emirates, started service to India in 2004, with a daily flight to Mumbai. It now flies 159 times a week to 10 Indian cities.

Etihad and Emirates, the biggest airline in the United Arab Emirates, cater to the regional tastes of Indians and Indian food lovers. Emirates, for example, introduced a Gujarati dish, turiya vatana muthia (ridge gourd and green pea dumpling), on flights out of the Gujarat state’s hub, Ahmedabad.

The growing number of Indians who have left their homeland continues to spur more travel to visit family back home. In Canada, for example, Indians are now the second-largest immigrant community (after Chinese immigrants), with about 30,000 people a year moving there.

Canada’s national airline, Air Canada, now has 18 weekly flights from Toronto and Vancouver to Mumbai and Delhi; many have Hindi-speaking flight attendants.

“The Indian market is of major importance to us,” said Mark Galardo, the vice president of network planning at Air Canada. The airline has hired Vikram Vij, a Canadian Indian chef, cookbook author and television personality, to develop menus for first-class travelers. Business-class travelers on Air Canada flights from Toronto to Delhi can now choose such dishes as “Maharaja-style” butter chicken and paneer or chana masala, served with roasted cumin rice and garlic cilantro naan.

Anjela Evangelista, the travel and expense manager for Twitter, said she was making trips to India more often, always flying Cathay Pacific’s premium economy.

“When I started here almost five years ago, I went about once a year, mostly to our main office in Bangalore,” Ms. Evangelista said. “Now, we’ve opened offices in Mumbai and New Delhi, so I go at least twice a year. A lot of our 300-person shared services team go over to oversee travel and entertainment audits and training at least once a year.”

With Demand Rising, Airlines Add Flights to India