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IATA slams Govt for steep airport charges
India came under pressure for the recent hike in charges at Delhi airport and major delays in building new airports. The International Air Transport Association (IATA) said that the Indian Government should encourage the aviation sector for overall economic growth. India's airport regulator AERA allowed a whopping 346% hike in Delhi airport charges recently. IATA director general and CEO Tony Tyler said "this is clearly unacceptable".
"The Delhi International Airport Limited (DIAL) has to pay 46% of its revenue to the government... This is neither in the interest of the airlines nor of the airport," Tyler said.
Addressing the annual general meeting of IATA, Tyler said that he would be holding discussions with Indian authorities on this issue soon. He expressed hope that "there might be some common ground" which could be found to protect airlines' and consumers' interests.
"Governments often miss the mark with economic regulation of infrastructure supplies... The (airport) regulator in South Africa allowed a 161% increase in airport charges...This was outdone by the Indian regulator which allowed a 346% increase in Delhi, making it among the world's most expensive airports," Tyler said.
Both the Indian and the South African airport regulators failed to protect the public interest", though they followed the prescribed guidelines to allow the massive hike in airport charges and user development fees for passengers, he said.
On aviation infrastructure in India, Tyler lamented that Mumbai's much-needed new airport at Navi Mumbai will not open as scheduled in 2014 as construction has not even started.
"Airlines need infrastructure to grow. Just like taxes and regulation, some governments understand and reap the benefits. Others don't and the economy suffers the consequences," the IATA chief said.
Two Foreign PE firms plans to acquire stake in SpiceJet: reports
Two foreign private equity firms is planning to acquire stake in Kalanidhi Maran-led SpiceJet, according to reports.
Reports stated that Neil Mills, CEO of the company denied rumours that Emirates, Air Asia and British Airways are picking up stake in SpiceJet.
The global air transport industry is committed to three sequential goals to manage its 2% share of global manmade carbon emissions. These are:
To improve fuel efficiency 1.5% annually to 2020
To cap net emissions from 2020 with carbon-neutral growth
To cut net emissions in half by 2050 compared with 2005 levels
To achieve these ambitious goals the industry is pursuing a four-pillar strategy based on more technology investments, efficient infrastructure, better operations, and globally agreed positive market measures, ideally a single, global mechanism to offset some emissions.
In Focus Stories
Maximize aviation’s economic benefits: IATA to govts
The International Air Transport Association (IATA) called on governments to be stronger partners in maximizing aviation’s economic and social benefits.
“Our industry’s license to grow is earned through working with governments to constantly make flying even safer, more secure, and more sustainable. Now we need an agenda to achieve tax regimes that do not kill growth, regulation that facilitates growth, and infrastructure that can efficiently accommodate growth. Doing so will enable the substantial economic benefits—jobs and growth—that global connectivity provides,” said Tony Tyler, IATA’s Director General and CEO. The remarks came in Tyler’s State of the Industry address at the opening of the 68th IATA Annual General Meeting and World Air Transport Summit.
Aviation is a key driver of economic growth, jobs, and prosperity:
In 2011, aviation safely transported some 2.8 billion passengers and 48 million tons of cargo. The value of goods transported by air is estimated at $5.3 trillion, which equals to 35% of the value of all goods traded internationally. A recent study by Oxford Economics confirmed that aviation’s contribution to the global economy supports 57 million jobs and some $2.2 trillion in economic activity Oxford Economics projected that aviation will grow about 5% annually to 2030.
That would see passenger numbers rise to 5.9 billion and cargo shipments could triple to nearly 150 million tonnes. This connectivity would support 82 million jobs and $6.9 trillion of global GDP If growth is held back by even one percentage point, the global economy would forfeit 14 million jobs and over $1 trillion in GDP contribution from aviation.
“Aviation’s benefits are not guaranteed. Aviation is expected to grow about 5% annually to 2030. If that growth is held back by even one percentage point, the global economy will forfeit over a trillion dollars and 14 million jobs. Modern economies cannot prosper and create jobs if they are not connected to global opportunities through aviation. Governments need to unleash the power of aviation to drive jobs and growth. And airlines need to be successful businesses—keeping revenues ahead of costs and generating returns for their shareholders—to deliver economic benefits,” said Tyler.
Domestic News
Jet Airways in talks with airline alliances Star, Skyteam for association
After Air India’s association with the global airline alliances is in limbo, another Indian carrier is in talks with Star Alliance and Skyteam looking towards a global tie-up, reports said.
Star Alliance includes Air Canada, Air China, ANA, Lufthansa and Singapore Airlines and operates 20,500 daily flights to 1,200 airports. In comparison, Skyteam has Aeroflot, Air France, China Eastern, Delta Airlines and KLM among others, and operates 14,700 daily flights to 958 destinations.
The Centre for Asia Pacific Aviation (CAPA) had recently indicated in a report that Jet Airways would join the Star Alliance ahead of Air India.
According to Jet Airway’s promoter, Naresh Goyal the airline was looking to expand its international operations to destinations that were economically viable. Munich, Frankfurt and Paris are some of the destinations to which the carrier is keen to start operations.
Ajit Singh appreciates support of executive pilots
Civil Aviation Minister Ajit Singh has today written to all Executive Pilots of Air India thanking them for keeping the interest of people foremost and not letting Air India falter during this difficult time. Recognising their unstinted support in this hour of crisis, though temporary in nature, the Minister has said that each one of them holds the key to achieving success in this fight for survival and revival and also to regaining the lost glory.
Singh has assured them of the Government of India’s commitment to ensure the revival of company. Reminding them of the intense competition in civil aviation sector, the Minister has reiterated the vulnerability of Air India to even slightest irresponsible and agitational act of one or other section of the employees which may lead to raising of eyebrows about utility and necessity of Air India and infusion of public money to ensure its survival.
Bengaluru Intl Airport launches all new fleet of “The Airport Taxi”
Bangalore International Airport Limited (BIAL) took another step to elevate the travel experience by introducing a brand new fleet of taxies with a unique identity, a first for any Indian airport. This new identity will not only raise the experience in terms of comfort and safety but will also reinforce confidence in the user about this service offering.
The fleet has a total of 2000 cars comprising of brand such as Toyota Etios, Maruti Dzire & Mahindra Verito. While 1400 cars were introduced today, the balance 600 cars will come into the pool by the end of 2012. This fleet will be in addition to the existing 550 KSTDC taxies. The vehicles were flagged off by the Additional Commissioner of Police (Traffic), Dr. M.A Saleem IPS together with the management of BIAL.
Govt wants to act tough against 300 Air India pilots
IATA defers settlement of travel dues
InterGlobe in strategic partnership with UK's Air Partner
International News
IATA sees big downside risk to airlines' profitability
The International Air Transport Association (IATA) released its revised industry outlook for 2012. Global industry profits are expected to be US$3.0bn, unchanged from the last update in March. A fall in oil prices, stronger than expected growth in passenger traffic and a bottoming out of the freight market are driving some improvements in the profitability outlook. However, this is offset by the continued and deepening European sovereign debt crisis, which has led markets to expect a further deterioration and damage to economic growth, the adverse impact of which has been built into this forecast.
This will be the second year of declining returns since airline profits peaked in 2010 at US$15.8bn with a net profit margin of 2.9%. In 2011, industry profits fell to US$7.9bn for a 1.3% net profit margin. This year’s projected US$3.0bn industry profit would yield a net profit margin of just 0.5%.
NetJets to buy 425 Bombardier & Cessna planes for US$9.6bn
In the largest aircraft purchase in private aviation history, NetJets Inc., a Berkshire Hathaway company and the worldwide leader in private aviation, today announced it will add up to 425 new aircraft to its worldwide fleet under purchase agreements with Cessna and Bombardier. The transaction has a total value of US$9.6 billion and launches the new NetJets Signature Series of aircraft.
“This purchase demonstrates our long-term planning and represents our ongoing commitment to providing unparalleled safety and service in aircraft uniquely customized for our owners,” said NetJets Chairman and CEO Jordan Hansell. “Beyond the size of this order, what makes the new NetJets Signature Series special are the latest in aircraft technology and in-cabin comfort features we will deliver for our owners. By increasing the range and endurance of our fleet, we will allow our owners to get to even more destinations worldwide. We are confident that NetJets’ market leadership and strong foundation position us to make long-term investments in our business to differentiate our fleet in ways that no one else in the industry can.
IATA seeks comprehensive solution on aviation emissions
The International Air Transport Association (IATA) reiterated its call for a comprehensive global solution on aviation emissions to be negotiated through the International Civil Aviation Organization (ICAO).
“To meet our ambitious targets we will need a globally-agreed approach covering the areas of technology, operations, and infrastructure as well as positive market-based- measures. Everyone—including Europe—agrees that the solution must be a global agreement through ICAO at the 2013 Assembly. But Europe’s unilateral and extra-territorial inclusion of international aviation in its emissions trading scheme from 2012 is creating discord when we need harmony,” said Tony Tyler, IATA’s Director General and CEO.
Tyler’s remarks were made in his keynote State of the Industry address at the start of the 68th IATA Annual General Meeting and World Air Transport Summit in Beijing, China.
Emirates to sponsor new programme collaboration culture on BBC World News
BBC World News announces a new seven-part series, Collaboration Culture which will be produced by Zodiak Active and will broadcast across TV, Online and Mobile, starting 30 June 2012. The series will be sponsored by Emirates.
Collaboration Culture explores the exciting conversations that are created when leading personalities from various cultural fields are paired together to combine creative forces on a new, innovative project. What happens when a leading Bollywood dancer is paired with an Arab-American Classical Composer? What happens when a well-known British contemporary artist gets together with a Ghanaian coffin-maker?
New regional aerospace hub solution launched in Singapore
South African Airways to Host 69th IATA AGM
Malaysian Airline to double Asia Pacific destinations: reports
Japan Airlines could relist by September: report