Action in the skies to continue
Raghvendra Rao
Posted online: Wednesday, January 03, 2007 at 0000 hrs IST
NEW DELHI, january 2
Airlines running into losses worth crores notwithstanding, the year 2006 will be best remembered for growth that the sector witnessed: 48 per cent in domestic passenger traffic and 32 per cent in total domestic aircraft movement (191,150 aircraft movements recorded between April-June). Government figures put the number of domestic passengers carried till November 2006 at 29 million, a record. Many feel that this is the kind of growth which will drive the civil aviation sector in 2007.
The year may begin with the tabling of the Airport Economic Regulatory Authority (AERA) Bill in the Budget session of Parliament. Once cleared, AERA will approve tariff structure of airport charges including air navigation charges and will monitor preset performance standards for airports with an idea to promote a level playing field. Air navigation charges levied by Airports Authority of India (AAI) will also be subject to AERA’s approval.
Next in line, and perhaps the most awaited development in 2007, would be the merger of both the national carriers Air India and Indian Airlines into a single entity. If all goes as planned, the country could get a unified carrier under a new brand name, new identity.
Similarly, the subsidiaries of both carriers — Air India Express and Alliance Air — would also be merged to have a new unified subsidiary catering to low-cost operations. The merger, aimed at optimising fleet acquisition and leverage the asset base of both carriers, would figure high on the government’s agenda with civil aviation minister Praful Patel making it clear that he wants the merger to go through before the end of this fiscal.
Meanwhile, out of its total order of 68 new Boeing aircraft, Air India will receive 15 Boeings to add to its current fleet size of 44. Indian Airlines, too, will get seven Airbus aircraft delivered between June and December next year taking its fleet size to 81.
Having successfully pushed for the modernisation and restructuring of Delhi and Mumbai airports by involving private players, the government will also take a final call on the modernisation of Chennai and Kolkata airports. While the West Bengal government has already conveyed to the Centre that it want AAI to execute the works, the M. Karunanidhi led DMK government in Tamil Nadu has been pushing to get it done through the model followed for Delhi and Mumbai.However, with land being a major constraint in Chennai, the government may also explore possibilities to have a greenfield airport there.
The government is also going to complete the bidding process and selection of joint venture partners for constructing the new greenfield airport at Navi Mumbai next year. The shape of 35 non-metro airports is also likely to improve next year with AAI planning to shell out Rs 4,662 crore to refurbish airside and city side areas. Airports in the north east are also likely to see major development works next year.
Batting strongly for the need to have better regional connectivity, Patel has already made clear his ministry’s intentions to develop airstrips in some of the lesser known areas of the country. This year may see work begin to develop airstrips at places like Ajmer, Mount Abu, Behala, Cooch Behar, Jharsuguda, Malda, Muzaffarpur, Kamalpur, Kailashar, Passighat, Rupsi, Akola, Hassan and Mysore.
Aircraft maintenance and overhaul is expected to get a big boost in 2007, with Boeing setting up maintenance, repair and overhaul (MRO) facilities at Nagpur with an estimated investment of $100 million.
But it is the flip side of this growth which the government could do well to address in 2007. So, while it may allow more carriers to fly in Indian skies, severe congestion at major airports, prompting airlines to levy a ‘congestion surcharge’ and rising aviation turbine fuel costs would be the ghosts from the past which the government may need to get rid of this year.
LINK
Raghvendra Rao
Posted online: Wednesday, January 03, 2007 at 0000 hrs IST
NEW DELHI, january 2
Airlines running into losses worth crores notwithstanding, the year 2006 will be best remembered for growth that the sector witnessed: 48 per cent in domestic passenger traffic and 32 per cent in total domestic aircraft movement (191,150 aircraft movements recorded between April-June). Government figures put the number of domestic passengers carried till November 2006 at 29 million, a record. Many feel that this is the kind of growth which will drive the civil aviation sector in 2007.
The year may begin with the tabling of the Airport Economic Regulatory Authority (AERA) Bill in the Budget session of Parliament. Once cleared, AERA will approve tariff structure of airport charges including air navigation charges and will monitor preset performance standards for airports with an idea to promote a level playing field. Air navigation charges levied by Airports Authority of India (AAI) will also be subject to AERA’s approval.
Next in line, and perhaps the most awaited development in 2007, would be the merger of both the national carriers Air India and Indian Airlines into a single entity. If all goes as planned, the country could get a unified carrier under a new brand name, new identity.
Similarly, the subsidiaries of both carriers — Air India Express and Alliance Air — would also be merged to have a new unified subsidiary catering to low-cost operations. The merger, aimed at optimising fleet acquisition and leverage the asset base of both carriers, would figure high on the government’s agenda with civil aviation minister Praful Patel making it clear that he wants the merger to go through before the end of this fiscal.
Meanwhile, out of its total order of 68 new Boeing aircraft, Air India will receive 15 Boeings to add to its current fleet size of 44. Indian Airlines, too, will get seven Airbus aircraft delivered between June and December next year taking its fleet size to 81.
Having successfully pushed for the modernisation and restructuring of Delhi and Mumbai airports by involving private players, the government will also take a final call on the modernisation of Chennai and Kolkata airports. While the West Bengal government has already conveyed to the Centre that it want AAI to execute the works, the M. Karunanidhi led DMK government in Tamil Nadu has been pushing to get it done through the model followed for Delhi and Mumbai.However, with land being a major constraint in Chennai, the government may also explore possibilities to have a greenfield airport there.
The government is also going to complete the bidding process and selection of joint venture partners for constructing the new greenfield airport at Navi Mumbai next year. The shape of 35 non-metro airports is also likely to improve next year with AAI planning to shell out Rs 4,662 crore to refurbish airside and city side areas. Airports in the north east are also likely to see major development works next year.
Batting strongly for the need to have better regional connectivity, Patel has already made clear his ministry’s intentions to develop airstrips in some of the lesser known areas of the country. This year may see work begin to develop airstrips at places like Ajmer, Mount Abu, Behala, Cooch Behar, Jharsuguda, Malda, Muzaffarpur, Kamalpur, Kailashar, Passighat, Rupsi, Akola, Hassan and Mysore.
Aircraft maintenance and overhaul is expected to get a big boost in 2007, with Boeing setting up maintenance, repair and overhaul (MRO) facilities at Nagpur with an estimated investment of $100 million.
But it is the flip side of this growth which the government could do well to address in 2007. So, while it may allow more carriers to fly in Indian skies, severe congestion at major airports, prompting airlines to levy a ‘congestion surcharge’ and rising aviation turbine fuel costs would be the ghosts from the past which the government may need to get rid of this year.
LINK
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