Aerospace Diary

by  Neelam Mathews  -  August 10, 2018, 7:32 AM Add caption Overcapacity is creating a financial setback for India's airline industry. (Photo: Neelam Mathews) Fortunes have reversed for Indian airlines that had been growing at an average of 18 percent a year for the past three years. An exceedingly competitive fare environment, the adverse impact of a depreciating rupee, and increasing fuel prices have resulted in the sector showing signs of stress. “Cost pressures amidst weakness in fares are turning the operating environment adverse for operators,” Santosh Hiredesai, analyst at Mumbai-based SBICap Securities told  AIN . Fares for a two-hour flight between Delhi to Mumbai can be as low as $48. Given the infrastructure constraints at airports and in the airspace, Hiredesai says capacity rationalization often results in sharp improvement in industry yields. He said when Kingfisher Airlines ceased operations in 2013, followed by budget Spi...

by  Neelam Mathews   May 15, 2018, 2:33 PM The Indian government has decided to take a longer-term view toward addressing its airport infrastructure needs, as domestic traffic growth reaches 18 percent a year. Finally recognizing the shortcomings of planning in three- to five-year increments, and often on an emergency basis, India endeavors now to plan for 15 to 20 years into the future, theoretically allowing for infrastructure development to keep pace with traffic growth, said minister of state for civil aviation Jayant Sinha. The government initiative known as Next Gen Airports for India centers on upgrading technology at airports to allow for 1 billion trips per year in the next 15 years, said Airports Authority of India chairman Guruprasad Mohapatra. According to Sinha, the country will invest $15 billion in airport infrastructure over the next five years. India is also considering development of a new airport in Goa, a second air...

Neelam Mathews May 8, 2018 Pakistani Prime Minister Shahid Khaqan Abbasi officially opened New Islamabad International Airport (NIIA) on 1 May, before the inaugural flight on 3 May (operated by Pakistani carrier Shaheen Air). NIIA replaces the existing Benazir Bhutto International Airport...morein JAR...

by  Neelam Mathews Dec 4, 2017 As Kazakhstan’s economy starts to bounce back after two years of currency devaluation, GDP declines and suppressed oil prices, Almaty-based Air Astana has resumed expanding its scope of operations in Russia, the Central Asian countries, South Asia and China. Located at the crossroads of Asia and Europe, Kazakhstan stands geographically well positioned to attract transit traffic, which accounts for a growing proportion of Air Astana’s revenues.   Air Astana flies to 46 international and 20 domestic destinations. “We are conscious the domestic market is very limited…That is why we are here [in India],” Air Astana CEO Peter Foster told  AIN  during a recent interview in Delhi. “Because of our geographical location, we can fly from nowhere to anywhere.” Seventeen Airbus A320neos, five Embraer E190s and three Boeing 787s have fueled Air Astana’s fleet expansion. It expects to take delivery of another two A320neos by...

Neelam Mathews 19-Sep-2017 South Korea -based Lotte Duty Free, which has stores in six airports, is feeling the effects of the ongoing North Korean nuclear crisis and a row between  China  and  South Korea  over deployment of a  US -supplied missile defence system. China  has introduced restrictions on South Korean imports ......more in JAR

Airports Neelam Mathews  - IHS Jane's Airport Review 08 August 2017    Guwahati Airport in northeast  India  is being expanded, as operator AAI aims to develop regional air connectivity. (Neelam Mathews) The Airports Authority of India (AAI) has selected the small airport in Guwahati, northeast India, to be upgraded into a regional hub serving Bangladesh, Cambodia, Laos, Myanmar, and Vietnam. These five countries all lie within a flying time of 45-60 minutes from Guwahati. The airport (also known as Lokpriya Gopinath Bordoloi International Airport) is already the busiest in northeast India but it requires “robust infrastructure” to serve destinations in Southeast Asia and the rest of India, AAI chairman Guruprasad Mohapatra said on 1 August during a conference on strengthening northeast Indian aviation connectivity, held in Guwahati. The AAI appointed US-based AECOM as project management consultant for the Guwahati development programm...

by  Neelam Mathews  - June 29, 2016, 3:00 AM New Indian carrier Vistara stands to be a beneficiary of the long-delayed reforms of the country's air transport policy. [Photo: Neelam Mathews] India released a national civil aviation policy on June 17 after two decades of fits and starts, as the country works to properly develop its fledgling infrastructure and prepare for a forecast 20 percent annual traffic growth until 2020. Within three days of the announcement, India radically liberalized its restrictive foreign direct investment regime by opening ten sectors, including defense and aviation. Ministry of Civil Aviation secretary Rajiv Nayan Choubey called June “a fun month,” while admitting challenges of implementation lay ahead and that “nuts and bolts” of the policy still required fine-tuning. “We are concerned that if we fall behind our growth curve, we will face civil aviation slumps,” he said. “We have told OEMs to bring in ...

Neelam Mathews/Ben Vogel Feb 12, 2016 The biggest airport in  Pakistan  is being built by the  China  Communications Construction Company at Gwadar in Baluchistan as part of the USD46 billion  China - Pakistan  Economic Corridor linking western  China  to the Arabian Sea. Construction of New Gwadar International Airport is set to begin imminently. The USD250 million project is expected to last 30 months on a 4,000-acre site that sits 25 km northeast of the existing airport. The airport is one element of a wider Chinese-backed strategy for Gwadar, including development of the deepwater Gwadar Port and a road-building programme. Chinese Overseas Ports Holding Company Ltd took over the port in October 2015 after signing a 40-year lease for more than 2,000 acres of land. While New Gwadar International International Airport is primarily a Chinese project, the  Pakistan  Civil Aviation Authority (PCAA) is upgrading airfield infr...

by  Neelam Mathews  -  February 8, 2016, 1:07 PM Although Indian law limits foreign ownership of domestic airlines to 49 percent, some established carriers in India complain that startups such as Vistara operate under direct control of their overseas parents. (Photo: Flickr:  Creative Commons (BY-SA)  by  Rameshng ) India plans to release a new aviation policy next month and put it into effect on April 1, Ministry of Civil Aviation secretary  R.N.  Choubey confirmed to  AIN  during a civil aviation seminar in Delhi on February 2. The policy that has remained a draft for almost two decades comes at an opportune time, as Indian aviation posts record growth rates and low oil prices lead to competitive fares. Once a policy exists, investors can look seriously at investing in infrastructure-related projects. The policy focuses on development of regional connectivity and waiving of taxes that make maintenance, repair and...

by  Neelam Mathews  -  November 13, 2015, 4:11 PM An award to two consortia to design, construct, finance, develop, operate and maintain   FBO s at Delhi Indira Gandhi International Airport for 20 years and upgrade the present facility in phases is being called a monopolistic move by the general aviation industry. Airport management company Delhi International Airport Ltd. (Dial) would not comment about the award. Following two earlier canceled tenders, Dial and bid advisor InterVistas released the request for proposal ( RFP ) last year that mandated a partnership of Indian companies with foreign providers. Concessionaires Bird Group with ExecuJet and Indamer Co. with Mjets of Thailand won the bid. Others bidders were Air Works with Turkey’s Celebi and Shaurya Aviation with U.S.-Aurora Aviation. However, the very tenets of the bid are being questioned by India’s Business Aviation Operators Association ( BAOA ). R.K Bali,   BAOA ’s managing...

Neelam Mathews Aug 1 2015                                                                 Pix-Neelam Mathews “Don’t hurry to reply, but hurry to listen.” Aviation industry executive Anna Varshavskaya seems to subscribe to this Russian proverb. At just 31 years of age, she has ascended to the position of deputy CEO at Novaport, a regional airport investment company that runs eight Russian airports, and is eyeing further growth. Influenced in her formative years by her father, a military pilot who flew Mi-8 helicopters, Varshavskaya felt that the closest she could come to obtaining his type of career would be to enter the field of aviation. After graduating from university in Moscow, she accepted a job as a dispatcher at Sheremetyevo International Airport whe...

Record Info hide Publication: Jane's Airport Review Author: Neelam Mathews Section: AIRPORTS Last posted: 2014-09-16 Images: 1 image The recently elected government in India has set out its achievements in aviation during its first 100 days in office - although it has still not announced its policy. The new government pledged to unveil a national aviation plan, claiming that the absence of coherent direction over the past decade was responsible for a lack of investment in the airport infrastructure and technology. Asked by  IHS Jane's  for a deadline on the release of the new policy, the Minister for Civil Aviation Ashok Gajapathi Raju Pusapati said: "As soon as it is ready to be released, it will be." 1568659 India's Minister for Civil Aviation Ashok Gajapathi Raju Pusapati (pictured seated) claims progress on multiple fronts - but has yet to announce the promised new aviation policy. (Indian Ministry of Civil Aviation) Since the BJP ...

Jane's Airport Review Neelam Mathews Sept 5, 2014 India needs to adopt a transparent economic regulatory framework in place of its existing "outmoded" rules to attract investors for infrastructure, according to Airports Council International (ACI) World Director General Angela Gittens. Failure to reform "could stifle development of India's airports in the long run", Gittens warned during a visit to Mumbai and New Delhi in late August. The need to regulate "every aspect is now outmoded and regulators [elsewhere in the world] tend to focus more on service quality rather than strict price," she added. Read more (subscription) on Ihs.janes.com 1354012 India must reform airline and airport regulations in order to succeed, said ACI Director General Angela Gittens. (ACI World)