Aerospace Diary

AIN AIR TRANSPORT PERSPECTIVE  »  JANUARY 7, 2013 by    NEELAM MATHEWS Fortunes have reversed for Kingfisher Airlines since 2007, when the carrier’s CEO, Vijay Mallya (seated center), hosted Airbus COO for customers John Leahy (left) and Airbus executive v-p Kiran Rao during a New Delhi press conference promoting Kingfisher’s since dashed plans to fly the A380. (Photo: Airbus) January 7, 2013, 11:55 AM Facing a high debt burden, unpaid bills, a depreciating rupee in its home country of India and rising fuel costs, Kingfisher Airlines saw its Air Operator Permit   ( AOP ) expire on December 31 after the Director General of Civil Aviation ( DGCA ) found the carrier had failed to furnish no-objection certificates from service providers–including airports–in its restructuring plan. Now, the Airports Authority of India ( AAI ) has threatened to “evacuate” the assets of the airline from airports across the country. “We also have p...

Neelam Mathews Sept 16, 2012 Amid all the news breaks, we missed writing on the judgment of the Competition Appellate Tribunal (Compat) which has annulled a fine issued by the CCI to Kingfisher Airlines. Non-Compliance Image Source- cattlelogos.com The 10 million rupee (about EUR 145,000) fine was the first penalty levied by the Indian Competition Commission under the Competition Act 2002 where Kingfisher was sanctioned for allegedly failing to supply information in the context of the CCI's investigation into the company's alliance with Jet Airways.  "Kingfisher appealed to Compat, which set aside the CCI order and remitted it for consideration.  Compat found that the letters sent to the airline were notices of extension and not, as argued by CCI, reminders to comply with the original information request.  Compat found that the CCI failed to distinguish between a failure to comply and late compliance. In respect of the latter, there is only failure wh...

AIN AIR TRANSPORT PERSPECTIVE » JUNE 4, 2012 by  NEELAM MATHEWS Air India holds an order for 27 Boeing 787s, but it could struggle to pay for them now. (Photo: Boeing) June 4, 2012, 12:43 PM Individuals can argue over who has lost more face as a result of Air India’s last-minute cancellation of its first Boeing 787 delivery: the U.S. airframer or the cash-strapped flag carrier and its masters in the Indian government. But few would debate the awkwardness of a decision by Indian officials to scrap a delivery ceremony planned for between May 28 and 31 at barely four days’ notice, even as a party of 40 invited media and guests prepared to board a flight to Seattle to join elaborate festivities to mark acceptance of the first of 27 Dreamliners ordered by Air India. Civil aviation minister Ajit Singh canceled the delivery, insisting that Boeing would first have to agree to a revised compensation package for the program’s well-documented delays. Some see the move as a poli...

AIN Air Transport Perspective by  Neelam Mathews Indian airlines want to be bolstered by foreign investment. April 30, 2012, 11:10 AM As highly taxed fuel, mounting debt and aggressive ticket pricing stifle the fledgling airline industry in India, the government seems ready to renege on its promise to allow foreign direct investment (FDI) in the country’s carriers. Current rules do not permit foreign airlines to invest in domestic carriers, although non-aviation-related investors can hold up to a 49-percent stake. The government’s apparent intention to break its promise to liberalize the industry traces its roots to political wrangling and an effort to woo rebellious factors of the ruling Congress Party. Burdened with a combined debt of $20 billion, Indian airlines have lost $2.5 billion in the fiscal year ending March 2012, according to Australia-based consultancy Center for Asia Pacific Aviation. “This [FDI] has always been a sensitive issue but the recent debate has been cloud...

Credit- Suzanne Rab Partner King & Spalding  Specifically, the “ Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Amendment Regulations, 2012 ”, makes several significant changes to the Combination Regulations which were issued on 11 May 2011. Key points include: · An exemption for acquisitions of less than 25% of equity shares or voting rights in the ordinary course of business or for investment purposes, without an acquisition of control; · An exemption for buy-back of shares or subscription of rights issues of shares, not leading to an acquisition of control; · A limited exemption for certain intra-group mergers and amalgamations involving subsidiaries wholly owned by the same group; · A significant uplift in filing fees – the Form 1 fee is increased from INR 50,000 to INR 1,000,000 and for Form 2 (long form) the fee is increased from INR 1,000,000 to INR 4,000,000; · Various changes to filing requireme...

By:   Neelam Mathews    FlightGlobal 6 hours ago Anyone looking for an example of how hard times can reverse fortunes in the airline business need look no further than Kingfisher Airlines and its flamboyant boss, the high-living Indian booze baron Vijay Mallya. Once a leading light among the new, private ventures poised to profit from India's burgeoning wealth and seemingly insatiable appetite for domestic and international air travel, Kingfisher - named after one of the most popular brands in Mallya's United Breweries, one of the world's biggest drinks companies - has stumbled into 2012 with a crushing debt burden, a crippled fleet and a desperate need for a financial saviour. At its height, Kingfisher ran an extensive domestic network, targeting the business traveller in particular. The airline built a fleet of 60 Airbus and ATR aircraft with nearly 150 on order or option and, between the main operation and low-cost subsidiary Kingfisher ...