Govt mulling sale of Air India's ground handling services arm: Sources

The government is mulling strategic sale of Air India subsidiary AIATSL to raise funds and help cut debt of the national carrier, according to official sources.

Strategic sale of Air India Air Transport Service (AIATSL), which provides ground handling services, is being planned as part of the turnaround scheme for Air India which is reeling under a debt burden of Rs 480 billion at end of March 2017.

The official sources said strategic sale of AIATSL is in the works.

"The Expression of Interest (EoI) for bidders would be floated soon after the GoM clears the EoI," the sources told PTI.

The stake sale plan follows the decision of Finance Minister Arun Jaitley led ministerial panel in June to make the airline competitive, but cutting down debt and raising resources by selling land assets and other subsidiaries.

SpiceJet tests India's first biofuel-powered flight. Will it change flying?

No-frills airline SpiceJet on Monday operated India's first test flight powered by biojet fuel, marking a new chapter in the fast-growing domestic aviation sector.

The nearly 45-minute flight from Dehradun to the national capital was operated with a Bombardier Q400 aircraft, partially powered by biojet fuel made from Jatropha plant, according to an airline official. The flight landed at around 1150 hours here.

With the test flight, India has become one of the few countries and probably the first among the developing nations to use biofuel for flying planes.

SpiceJet on Monday said it has successfully operated "India's first ever biojet fuel flight".

It also comes at a time when the airline industry is grappling with spiralling fuel prices that are impacting their profitability. However, use of biofuel for regular flights would take some time.

For the test flight, which carried 28 people, including five crew members, the aircraft's right engine was filled with 75 per cent aviation turbine fuel (ATF) and 25 per cent of biojet fuel, made from Jatropha plant, the airline official said.

Private airlines need to deal with issues on their own: Suresh Prabhu

Amid Jet Airways facing turbulent times, Civil Aviation Minister Suresh Prabhu has made it clear that private airlines have to deal with issues facing them on their own and the government's role can only be at the policy level.

The minister's comments come at a time when the airline industry is grappling with tough times as high oil prices and stiff competition are crimping the profitability of carriers.

When asked about the current situation at Jet Airways, Prabhu said, "We are not aware about their position."

The full service carrier, which has been flying for over 25 years, is facing financial woes. Earlier this month, it also deferred the announcement of June quarter results. The airline's share price has taken a beating in recent weeks.

"We are not aware about their (Jet Airways) position. As far as private airlines are concerned, they will have to deal with whatever issues they are dealing with. At the Ministry of (Civil) Aviation we can only deal at the policy level, Prabhu told PTI in an interview.

Charging less than Rs 10/km, Indian airlines among world's cheapest five

Low-cost carriers IndiGo and Air India Express have been ranked among the top five cheapest airlines in the world in providing international connectivity.

Air India Express, the wholly-owned subsidiary of state-run carrier Air India has been ranked second and the budget carrier IndiGo placed at fifth position in a Global Flight Pricing Report prepared by Melbourne-based Rome2rio -- a multimodal travel planning site.

Two other Indian carriers also figured in the list. Jet Airways gained the 12th place followed by Air India at 13th position.

The report compared 200 major airlines across continents by the average price per kilometre with Air Asia X taking the pole position.

Air India Express, mostly connecting Gulf countries and Singapore, has an average cost of $0.08 per km and IndiGo $0.10 per km. The latter connects Indian cities with Gulf countries besides Bangkok, Colombo and Kathmandu.

Air France cancels 30% flights on Wednesday as strike over pay continues

Striking Air France pilots and cabin staff insisted they weren't backing down, as their latest walkout forced the cancellation of some 30 per cent of the airline's flights worldwide on Wednesday.

Union members protested at Paris' Charles de Gaulle Airport, where screens showed "cancelled" notices next to multiple flights. Staff want 6 per cent pay raises, after seven years of salary freezes as the company went through restructuring to stem losses.

The airline argues that such pay rises would threaten the turnaround effort.

Sophie Gorins, general secretary of the SNPNC flight crew union, said "we won't stop the conflict unless they give us the 6 percent."

Several meetings between workers' representatives and Air France management have already taken place since the strike started on February 22 but unions say they have not yet received a satisfactory reply to their demands.

The company has lost more than 100 million euros (USD 124 million) in sporadic strikes since February. The Air France actions are coming amid other French labour action.

Air India's new owners to inherit planes, prime slots, and $5 bn of debt

India is selling a controlling stake in its flagship carrier along with two-thirds of the loss-making airline’s about $7.8 billion debt, as Prime Minister Narendra Modi moves ahead with the nation’s most high profile asset sale in decades.
The government will sell 76 percent of Air India Ltd., according to a document uploaded on the civil aviation ministry’s website on Wednesday. The airline’s overseas budget carrier will be completely sold in the offer, while the state will sell a 50 percent stake in the ground handling unit separately. The administration may also ask the buyer to conduct an initial public offering.

A successful sale of Air India, which is surviving on taxpayer-funded bailouts, is seen as test case for Modi to burnish his credentials as a reformist attempting to steer the state away from running businesses and boost spending on health and education. The national carrier has five subsidiaries, a joint venture and a combined workforce of as many as 27,000.

“Selling a 76 percent stake is the second-best option for the government; the best option would have been to exit completely,” said Kapil Kaul, South Asia CEO at CAPA Centre for Aviation, “There’s also a caveat there that the acquirer will have to list the company, which means the government is looking at exiting through an IPO route, which is fair enough and very positive.

Goa-Mumbai Air India flight makes emergency landing after hydraulic failure

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A full emergency was declared on an Air India aircraft arriving at Mumbai's Chhatrapati Shivaji International Airport, due to hydraulic failure on Sunday.

However, Air India aircraft 662 landed safely at 8:15 p.m. on Runway 27, as informed by the spokesperson the airport.

The full emergency was withdrawn at 8:29 p.m
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Ryanair crisis: Aviation expert warns 600,000 new pilots needed in 20 years

Ryanair’s announcement that it is cancelling 18,000 flights between November and March has understandably evoked the ire of the 400,000 customers affected. And, hot on the heels of news that it was cancelling up to 50 flights a day from mid-September to the end of October, it is facing a PR nightmare and trouble with regulators.

Amid the outrage, the reason for the cancellations has been largely lost. The airline said it “messed up in the planning of pilot holidays”. But this is part of a major industry-wide problem. Ryanair might be one of the first to feel the pinch in Europe, but there is a global pilot shortage which has been a long time in the making.
The industry currently employs 500,000 professional pilots worldwide and reportedly needs another 600,000 in the next 20 years to cover the retirement of pilots and the 6% growth of another 35,000 airliners entering the global market. Shortfalls of pilots have already hit US airlines this year, starting with small regional ones, and have been visible in India and China for a while now. Ryanair is the first European airline to be hit.

The food chain of aircraft type, airline, salary, benefits and personal lifestyle preferences for pilots determines where they look to work. Long gone are the times where pilots were employed for life by one airline. Like employees in most industries these days, pilots are choosing and managing their careers.
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AirAsia to launch new Chinese low cost carrier based in Zhengzhou

AirAsia Bhd signed a joint venture agreement with China on Sunday to establish a low cost carrier (LCC), with a base in the east-central city of Zhengzhou.

AirAsia (China) is a joint venture between AirAsia, Everbright Group and Henan Government Working Group, the airline said in a statement.

AirAsia (China) will also invest in aviation infrastructure, including a dedicated LCC terminal at Zhengzhou airport and an aviation academy to train pilots, crew and engineers, as well as maintenance, repair and overhaul (MRO) facilities to service aircraft, the statement said.

No further details of the LCC were provided.

Malaysian Prime Minister Najib Razak, who is on a visit to China, witnessed the signing of the joint venture agreement.

"This Chinese venture represents the final piece of the AirAsia puzzle," said AirAsia Group CEO Tan Sri Tony Fernandes.

"In just 16 years, we have successfully built a presence in Malaysia, Thailand, Indonesia, Philippines, India and Japan, with China closing the loop on all major territories in Asia Pacific."

AirAsia and AirAsia X currently fly to 15 destinations in China and the group is the largest foreign LCC operating into the country.

AirAsia is Asia's largest budget airline. China's Everbright Group is a state-backed financial firm.
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