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Tuesday, February 24, 2015

Indian Bank SBI Consortium takes over Kingfisher House

Loan recovery: SBI consortium takes over Kingfisher House

Clamping down on Dr Vijay Mallya-led UB Group to recover loans, a 17 Bank consortium led by state-run SBI today took over possession of the prized Kingfisher House, estimated to be worth Rs 100 Crore.

The banks have taken possession of the over 16000 Sq Ft property at Vile Parle, near the domestic Airport here, as part of their efforts to recover the INR  7000 crore loan they had granted to the long-grounded Kingfisher Airlines

SBI taking all steps to recover money from Kingfisher | PTI

New Delhi, Mar 18 (PTI) :The lead banker to Kingfisher Airlines, SBI on Monday said it is taking all steps to recover the loan provided to the grounded carrier.
SBI to bail out Kingfisher Airlines with Rs 1,500 cr loan ...

 The government-owned State Bank of India (SBI) threw a Rs1,500-crore lifeline on Tuesday to keep billionaire Vijay Mallya's sinking Kingfisher ...
SBI initiates possession of Kingfisher House in efforts to ...

SBI initiates possession of Kingfisher House in efforts to recover Rs 6800 crore loan - Kingfisher Airlines was touted as one of the most ...

SBI to approach CBI against Kingfisher over loan default ...

The companies which have other promoter group members of Kingfisher Airlines on their board will also not be given any further loans.

The CBI has returned empty-handed from the State Bank of India, the country's largest lender, in a case involving a loan to Kingfisher Airlines.




Monday, February 9, 2015

Why Air India is surviving on a Bailout funded by the Taxpayer

What’s holding back Indian Aviation 

Why Air India is surviving on a Bailout funded by the Taxpayer
As new Airlines launch, and the market grows steadily, existing domestic carriers are struggling to stay in the Air. A look at what’s holding back Indian Aviation.

If there was ever a good time to run an Airline in India, it’s now, said Ajay Singh, as he walked into a meeting with top Aviation ministry officials last December, when SpiceJet’s problems were at their peak.

On January 15, SpiceJet announced that a deal had been sealed between billionAire media tycoon Kalanithi Maran and Singh that would see the latter return to the helm of affAirs at the Gurgaon-based low-cost carrier.

What Singh said made sense, considering that global crude prices have plummeted by almost 60% — from $110 a barrel in June 2014 to close to $45 a barrel. Industry experts estimate that the fall in crude prices could help Indian carriers save up to $400 million, or about Rs 2500 crore, this fiscal.

Aviation turbine fuel (ATF) in India is priced, on average, about 60% higher than internationally. It is the single largest element contributing to Airline costs and accounts for 40% of the operating cost of Indian carriers — as against a figure of only 20% for international carriers. Domestic carriers pay up to 50% more for fuel than those in Dubai or Singapore.
Development of the Aviation sector is vital to India’s economic growth and can have a very high multiplier effect. According to a study by the International Civil Aviation Organisation, every Rs 100 spent on Air travel results in Rs 325 worth of total benefits and every 100 direct jobs in Aviation results in 610 new jobs overall.

A tale of wins and losses

India’s beleaguered Aviation industry is starting to see signs that could mark the beginning of a structural turnaround in its fortunes, said a January 2015 report by Aviation consultancy Centre for Asia Pacific Aviation (CAPA).

The decline in fuel prices has contributed significantly to the improved outlook. Two Indian Airlines — privately held IndiGo and GoAir — are expected to end the year in the black. Most Indian carriers are likely to report profits in the December quarter. Jet Airways reported a net profit of Rs 63.11 crore in the December quarter as against a loss of `267.89 crore in the corresponding quarter in 2013. IndiGo and GoAir will also report profits.

“India’s Aviation system may at last be coming of age,” says Kapil Kaul, South Asia CEO of CAPA.

Within five years, India, one of the fastest growing markets in the world, will become the third largest Aviation market globally. Indian carriers are expected to double their combined fleet size by 2020, to a total of around 800 Aircraft.

Three new Airlines — Air Costa, AirAsia India and Vistara — have launched operations in the last 18 months, and another six have been granted approval by the union ministry of civil Aviation. Domestic passenger traffic rose by about 10% in 2014, as 673.83 lakh passengers travelled by Air, against 614.26 lakh in 2013.

“Travel management companies report that business travel is picking up, which is reflected in the increased focus by Air India, Jet Airways and Vistara on the full service market,” says Kaul.

Deep structural issues, however, continue to ail the Indian Aviation sector. No other sector in India that is growing at this rate is suffering such heavy losses. A confidential Aviation ministry note following the SpiceJet crisis said the budget carrier wasn’t the only Airline in a precarious financial condition, and if urgent steps weren’t taken, there were some other Airlines that could end up the same way.

Despite falling crude prices, the Indian Aviation industry is expected to end the current financial year with estimated losses of about $1 billion or Rs 6,100 crore, according to an estimate by CAPA.

This follows a $1.7 billion loss last year. Over the past seven years, Indian carriers have lost a combined $10.6 billion (more than Rs 60,000 crore), or an average of $22 every time a passenger boarded an Aircraft.

Kingfisher shut down operations in 2012, Air India is surviving on a bailout funded by the taxpayer, Jet Airways posted a loss of Rs 3,667 crore last fiscal while SpiceJet just managed to survive after Ajay Singh stepped in.

“Airlines, other than IndiGo, will require $1.6 billion [Rs 9,600 crore] of funding this year just to sustain their business models. The prospects for further direct investment in Airlines remain very uncertain in the current climate,” says a July 2014 CAPA report.

What ails Indian Aviation?

A combination of factors, including certain government policies, has pushed the Aviation sector into the mess it is in. A clear long-term policy roadmap which is aligned to the industry’s requirements is yet to emerge, say experts.

“India is probably the only country that discriminates against its own carriers,” says Rajji Rai, an Aviation expert and former president of the Travel Agents Association of India. The 5 year/20 Aircraft rule prevents Indian carriers from beginning international operations until they have been operating domestically for five years and have a fleet of at least 20 Aircraft, while no such restriction applies to foreign Airlines Flying into India.

Several carriers currently operating to India such as Air Arabia, Etihad, FlyDubai, and TigerAir first entered the market well before they had been in operations for five years. Also, Indian Airport charges are among the highest in the world, which impacts profitability.

ATF in India is subject to some of the highest taxes in the world, with sales tax in some states as high as 29%. “ATF prices in India are really hurting Indian Aviation and challenging the very viability of several Airlines,” SpiceJet COO Sanjiv Kapoor said in an October 2014 letter to the Aviation ministry.

“All is not lost yet. The government can easily sort things out if it wishes to,” says a CEO of budget carrier.

“Aviation hubs like Dubai, Singapore and Doha have left India far behind. If Aviation continues to be treated as a luxury, no reforms will happen,” counters Rai.

Quick fix

The government must recognise Aviation as a critical sector that is vital to India’s economic growth.
“Lower ATF prices and a reduction in sales tax to 4% will give the sector a big boost and could be a game-changer,” says Kaul.

Eliminating the tax structure on maintenance, repAir and overhaul (MRO), removing negative restrictions on ancillaries and abolishing 5/20 rule are some other measures that the government needs to take.




Flying without wings: What's holding back the Indian Aviation sector


A look at what's holding back Indian Aviation If there was ever a good time to run an Airline in India, it's now, said Ajay Singh, as he walked into a meeting with top Aviation ministry officials last December, when SpiceJet's problems were at their peak

UAE Airlines ask Indian Aviation authorities for increase in capacity

UAE carriers on Tuesday called on Indian authorities to open up more capacity to them and warned their growth in the country was being held back Adel Ali, the group chief executive of Air Arabia, said that the Sharjah-based low-cost carrier had 

Aviation ministry bats for uniform tax on jet fuel

The civil Aviation ministry is also pushing for tax exemptions for the MRO industry MRO in India is estimated at $700 million but only 5-10 per cent of the business is carried out within the country “If we waive the service tax and VAT, maintenance 
'Hawaizaada' Depicts Indian Aviation Pioneers

About Flying and freedom (and, of course, love), the Bollywood movie “Hawaizaada,” directed by Vibhu Virender Puri, spins legend into more legend The year is 1895, and the setting is Bombay The story concerns a quest by two Indians to build an 














Friday, February 6, 2015

Air India, Spicejet say Banks need to reconsider lending to the Airline industry



The at the recently held Centre for Aviation (CAPA) India Aviation summit 2015, Indian carriers were vocal about their thoughts regarding the Banking sector not actively considering the Airline industry with respect to providing leading facilities and working capital to meet their long term capital requirements. 
The Aviation industry in India did go through its share of turbulences but the business environment is changing and their is an element of positive reforms that is bringing back the confidence in this sector.

S Venkat, Director Finance, Air India, was vocal about his appeal to the Banking sector to reconsider their decision. He feels its time the Banks reconsider their decision and provide the necessary working capital and meeting their long term capital requirements. He feels the Aviation industry today is on the path of recovery with the drop in fuel prices and other supportive developments, the Airline industry is trying to coming back to break even. His appeal was also seconded by Sanjiv Kapoor, COO, SpiceJet. They feel it was not right for Banks to base their decision on the tough times that the industry faced in the  past and the Banking sector should not be deterred by what happened to Kingfisher Airlines few years ago.




Indian Aviation Industry Calls For VAT Cut On Fuel

Indian Aviation industry representatives have called on state governments to lower their rates of value-added tax (VAT) on Aviation turbine fuel (ATF) 

Air India, Spicejet say Banks need to reconsider lending to the Airline industry

Air India, Spicejet, Air India Banks S Venkat, director-finance, Air India, was vocal about his appeal to the Banking sector to reconsider their decision.

Centre hopes for sector upgrade after US FAA March visit

The US Federal Aviation Administration (FAA) representatives will be visiting India early next month to evaluate India's Aviation safety mechanism

Sim Flying Instructor Capt Tapan Bhunia Accuses of Molestation



An Instructor at the Madhya Pradesh Flying Club was booked for molestation after a woman said he attacked her while giving her theory lessons.

The trainee Pilot, before lodging the case, had also written a letter to Capt Mandar Mahajan, the Chief Flying Instructor of Madhya Pradesh Flying Club. The Instructor has since been suspended. “I have suspended the Instructor on Wednesday night. An inquiry will be done by the management of the club and his termination will be decided subsequently,” Mahajan said.

Police, however, said initial inquiries suggest there was “some exaggeration” on the part of the victim.

“She came here to complete her 10 hours of Flying experience. She landed here on Tuesday and on Wednesday evening she was allegedly molested by the accused,” thana in-charge (TI) KL Dangi said.

Dangi said the woman had also taken training in USA and Punjab.

In the letter sent to Mahajan, the complainant wrote that she had two sessions of theoretical training in a room in club where the accused molested her.
INDORE: A trainee Pilot was allegedly molested by a trainer at Madhya Pradesh Flying Club (MPFC) in Indore while she was undergoing a training session to complete pending Flying hours. 

Aerodrome police have registered a case in the matter under IPC section 354 against the accused trainer Tapan Bhunia and further investigation is on. In-charge, Aerodrome police station, KL Dangi, said, "We are investigating the complaint of the victim woman. A case has been registered against the accused trainer. Search has been launched and we are yet to arrest him." 

Resident of Amravati district in Maharashtra, the 27-year-old victim woman had undergone training in USA through a Flying club in Punjab. As per the norms of a private airlines, the victim trainee Pilot had to complete 10 more hours of Flying for which she had come to the city. 

According to the police, the incident happened on Tuesday when training was underway in a closed room at the club. The victim in her complaint alleged that the accused did obscene acts and touched her during the session, which she objected. She rushed out the room crying and shared her ordeal with brother and MP Flying Club Chief flight Instructor Capt Mandar Mahajan. Later, she approached police to lodge complaint. 

Meanwhile, MP Flying Club management terminated Capt Tapan Bhunia after the incident that maligned club's image. "I have suspended the trainer after the incident. The club management later terminated him. The accused is unreachable. I would not be able to comment more on the issue as police are investigating the matter," said Chief flight Instructor and secretary of the club, Mandar Mahajan. 

MP Flying Club management terminated Capt Tapan Bhunia



News about Mp Flying Club Indore Molested

Trainee Pilot molested at MP Flying Club in Indore

INDORE: A trainee Pilot was allegedly molested by a trainer at Madhya Pradesh Flying Club (MPFC) in Indore while she was undergoing a training session to complete pending Flying hours. Aerodrome police have registered a…
Trainee Pilot molested at MP Flying Club in Indore | …

INDORE: A trainee Pilot was allegedly molested by a trainer at Madhya Pradesh Flying Club (MPFC) in Indore while she was undergoing a training session to complete ...

Trainee Pilot molested at MP Flying Club in Indore Times of India INDORE: A trainee Pilot was allegedly molested by a trainer at Madhya Pradesh Flying Club (MPFC) …
Trainee Pilot molested at MP Flying Club in Indore - …

Madhya Pradesh » Indore » News » Trainee Pilot Molested At MP Flying Club In Indore.

MP: Flying Instructor faces arrest after trainee accuses ...

An Instructor at the Madhya Pradesh Flying Club was booked for molestation after a woman said he attacked her while giving her theory lessons.






Monday, February 2, 2015

10% of SpiceJet Pilots are women.

10% of SpiceJet Pilots are women. 
All women crew common occurence, 
not just Women's Day: 
Sanjiv Kapoor COO SpiceJet Airlines






One fine Day an Aeroplane Cleaner Mike was cleaning the Pilots’
Cockpit when he saw a 📕book entitled
“How to Fly an Aeroplane for beginners. Volume One”

He opened the first page which said,
“To start the engine, press the red button.”. He did so and the airplane engine Started.

He was Happy and opened the next page.

“To set Airplane moving press the Blue Button.”

He did so and the Aeroplane started moving at an Amazing Speed.

He wanted to fly so he opened the third page which read,
“ To let the Aeroplane Fly, please press the ♻ Green Button.”

He did this and the Airplane started to Fly.

He was excited!!!!!!

Read More ...
http://capt-shekhar-gupta.blogspot.ca/2015/02/how-to-fly-aeroplane-for-beginners.html


Eesha Rohida [ MBA Mktg ]
Aviation News Editor