http://www.zeenews.com/znnew/articles.asp?aid=337478&ssid=53&sid=BUS
Air-India to raise US Exim Bank guaranteed loans for jet purchase  
 
New Delhi, Nov 23: The government today said state-owned carrier Air-India would raise funds through loan guaranteed by the US Exim Bank to part-finance its purchase of 68 aircraft costing about 7.2 billion dollars.

In a written reply to a question in Lok Sabha, Union Civil Aviation Minister Praful Patel said Air-India and its subsidiary Air India Charters Ltd (AICL) had proposed to raise 85 per cent of the project cost to acquire the 68 planes.

He said although no final agreement has been signed, ABN Amro Bank had been mandated as Exim Bank guaranteed lender for the first tranche of 17 aircraft costing 1.5 billion dollars.

The minister, however, said the financing for the balance 51 aircraft totaling 5.7 billion would be arranged later.

Patel said the remaining 15 per cent would be raised through commercial loans for which State Bank of India and ICICI Bank have been mandated.

Replying to another query, Patel said in view of the proposed acquisition of new aircraft by Air-India and Indian, the two public sector carriers were likely to induct additional manpower based on their respective operational requirements over the induction period and beyond.

Responding to another question, Patel said government has decided to rope in experts and agencies for professionalisation of management of Indira Gandhi Rashtriya Uran Akademi (IGRUA).

An empowered committee comprising officers of Ministry of Civil Aviation, DGCA and IGRUA has been set up for the purpose, he added.

Maintaining that the air cargo and some other areas in the Indian aviation sector were very weak, Government today said it was mulling the opening of these areas to private and foreign investment.
 ‘‘There is a need to open up areas like the non-scheduled operation, cargo, helicopters and seaplanes operations in the country. No formal decision has been taken as yet but government will be looking into it’’, Patel said after pointing out that there were only about half a dozen cargo aircraft in India at present.
 He said there was a need to ‘‘meaningfully review’’ these areas of operations as more importance has so far been given to scheduled operations run by the regular airlines.
 ‘‘We are examining various options in these areas as the issues concerned cannot be addressed by the prevailing policies’’, Patel said in reply to questions, adding that the issue of private and foreign participation was being considered.
He also briefed Parliament where he earlier addressing the the first ever EU-India Aviation Summit alongside European Commission Vice President Jacques Barrot, had said the long-term plan of this government was to create an ‘‘aviation grid’’ across the country by developing 400 airports and airstrips so as to ensure that a person was located within a 50 km-range from any airport. 

Apart from international connectivity, Patel said domestic connectivity in India was a major challenge and expeditious steps in creating or revamping airport infrastructure needed to be taken to overcome this problem. 
 ‘It is easier and takes less time to go to a foreign destination than travel from one part of the country to another. This situation needs to be changed soon enough’’.
 The Minister pointed out that the growth in domestic air traffic this year was expected to be a whopping 50 per cent and international by 25 per cent.
 ‘‘These figures are not going to slow down in the next ten years. It also doesn’t mean it would continue to grow at the rate of 50 per cent each year but a major growth rate is likely to be sustained in the next decade’’, he said.
 Pointing out that India had very good bilateral relations with all EU member-states, the EC Vice President said since both India and EU faced common challenges in aviation, the two sides should face them in partnership.
 ‘‘Given the strong growth and infrastructure challenges facing India’s aviation sector, I am extremely pleased with the prospects of enhacing cooperation in civil aviation with India. The scope for cooperation is huge and will benefit both India and EU industry’’, Barrot said.
 He also proposed the signing of a ‘‘horizontal agreement’’ between the two sides, to which Patel said the government would study all legal and other implications and its impact on the existing aviation bilateral relations between European nations and India and then take a call.
 This proposed agreement would amend provisions in the bilateral accords to bring them in conformity with EU laws. 

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November 23, 2006
 Lok Sabha  

The proposed of merger of the two public airlines Air India(AI) and Indian Airlines(IA) is under the active consideration of the Government and the Government has mandated that the merger process be so tailored as to ensure that:

·         The salary, status etc. of every employee is protected; and

·         The integration process be as painless as possible

This information was given to the Parliament today, by Shri Praful Patel, Minister for Civil Aviation.

The Minister informed the Parliament that the Committee on merger of Air India and Indian Airlines constituted by the Air India Board appointed M/s. Essenture India Private Ltd., as Consultants.  The Consultants have indicated that they would be able to complete the initial work relating to pre-merger activities in ten weeks time from the date of award of their mandate, which would enable the companies to prepare a detailed note for the approval of the Government.  After receipt of Government approval, the necessary merger process would be initiated. The exercise is likely to be completed by the beginning of the next financial year.

The Minister added that the Consultants have confirmed that while devising the integration process, due care is being taken to ensure protection of the current compensation, perquisites etc. of the personnel of the two airlines.

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Traffic at airports grew 14.4 pc in 05-06; down from 04-05
New Delhi, Nov 27 (UNI)

The Government today said the total traffic in respect of aircraft movement, passenger and freight in the country’s airports grew by 14.4 per cent during 2005-06, as against to 18.8 per cent recorded during 2004-05.
 ‘‘The annual average growth rate of total traffic in respect of aircraft movement, passenger and freight for the last three years are 12.8 per cent, 18.8 per cent and 14.4 per cent respectively during 2003-04, 2004-05 and 2005-06,’’ Civil Aviation Minister Praful Patel said in a written reply to the Rajya Sabha.
 Patel said various steps are being taken in order to de-congest the airports such as high-speed exit taxiways at Delhi and Mumbai airports, improved ATC procedures and ban on general aviation traffic.
 ‘‘A parallel taxi-track at Delhi airport, simultaneous use of both runways at Delhi and Mumbai airports during peak traffic periods, upgradation of ATC automation systems and installing CAT-II ILS at Kolkata airport have been introduced,’’ he said.
 Patel said the basic reason for the delay in landing and take-off is traffic congestion which occurs because of various airlines choose to operate during prime period due to commercial factors.
 ‘‘Airlines normally are also not adhering to alloted slots due to various reasons such as technical, commercial and weather,’’ he added. 

The rapid growth of airlines and air passengers would necessitate an additional 2000-3000 commercial pilots in the country during the next 5-10 years, Civil Aviation Minister Praful Patel told the Rajya Sabha today.
 Replying to Supplementaries during Question Hour, Patel said for augmenting the availability of air pilots, their retirement age had been increased from 58 to 65 years.
Besides the Directorate General of Civil Aviation according permission for setting up new pilot training academy, he said the capacity of people undergoing pilot training at the Indira Gandhi Rashtriya Udaan Academy (IGRUA) was being raised from 40 to 100. He said the DGCA has approved a total of 20 flying training institutes including modernisation of the IGRUA. In reply to a query, the Minister said some airlines have reported low profit or even losses, but the actual figures will be available only at the end of the financial year. To a query on the preparedness of airport operators and airlines for low visibility operations, the Minister said they were being prepared under the CAT II and CAT III technologies for the purpose.

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14 civilian plane accidents in three years
New Delhi, Nov 30 (UNI)

Over the past three years there were as many as 14 civilian aircraft accidents due to many reasons, including human error and non adherence to operating procedures, Lok Sabha was informed today.
 In a written reply, Union Civil Aviation Minister Praful Patel said the Directorate General of Civil Aviation (DGCA) has reported 14 accidents in the past three years. They were being investigated by the ’Inspector of Accidents’, appointed by the DGCA.
 He said accidents were due to the human error, non adherence to operating procedures, mechanical failure, and bad weather conditions.
 He said the safety regulations of the investigation authority were mandatorily implemented by the concerned agencies. DGCA also ensures safety in aviation operation by regular monitoring and airworthiness checks.
 In a reply to another question Patel said, Air India is planning to have a aircraft maintenance base at Thiruvananthapuram and Delhi.
 He said the government would soon begin the tendering process for Thiruvanathapuram unit and has acquired around 15 acres land for the project which is expected to be complete by March 2008.
 Process of appointing Project Management Consultant (PMC) is in process for Delhi is expected to be completed by December for Thiruvanathapuram, he added.
 The construction work in the southern state would involve an estimated expenditure of Rs 50 crore, while the Delhi project is still being evaluated.

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11 applications of pvt companies pending with govt
New Delhi, Dec 5 (UNI)
As many as 11 applications from private companies seeking permission to operate scheduled domestic Air Transport Services in the country are pending with the government, Minister of state for Civil Aviation Praful Patel informed the Rajya Sabha today.
In a written reply, he said the government has laid down policy with regard to grant of no-objection certificate (NOC) to new airlines. This policy is reviewed from time to time depending on the growth and requirement of civil aviation sector.
Replying to another question, Patel said that no decision has been taken, as yet, to join the proposed open sky agreement with ASEAN countries.
He also informed the House that at present there are nine scheduled domestic passenger airlines -- Indian Airlines, (including Alliance Air), Jet Airways, Shahara Airlines, Air Deccan, Kingfisher Airlines, Spicejet, Go Air, Paramount Airways and IndiGo -- operating in the country.
There are 246 aircraft in operation in the country, Patel said adding that approximately 13,76,772 kilolitre of fuel was consumed during 2005-06 in the domestic sector.
Replying to another question, he said government has taken several steps to facilitate growth of airport infrastructure in a sustained manner through restructuring of important Metro airports, facilitating construction of private greenfield airports, allowing FDI in Airport infrastructure upto 100 per cent and development of important non-metro airports through public-private partnership. 
 Patel said that there has been eight occasions for the rise of prices in fares of Indian/Alliance Air during the period begining from April 1, 2004 to November 15, 2006, each time ranging from 10 to 12 per cent.
 To a question, he informed the Upper House that a Foreign Airline during first week of August did not allow a common passenger Santraj Maurya holding valid business class ticket to board the airline on the ground that he was not a businessman. He was travelling from Delhi to Milan.
 ‘‘This incident occured due to lack of communication between the passenger and the Traffic Officer at the Alitalia Check in counter at the Indira Gandhi International Airport’’, Patel said. Government told the Rajya Sabha that security personnel deployed at airports were properly screened by the Home Ministry and there was no let up in vigil at various airports in the country.
Replying to a question from CPI-M member Sitaram Yechuri, Praful Patel said the selection of airport security was undertaken by the Airports Authority.
 The Minister said foreign pilots were flying Indian aircraft due to shortage of pilots in the country.
 He said personnel of Central Industrial Security Force guarded the airports.
In reply to a query on safety of airports during the Question Hour, the Minister said the International Civil Aviation Organisation (ICAO), in its audit report, had given high safety ratings for the Indian aviation sector.
 The Minister said the process to induct new aircraft into the Indian Airlines and Air India was on.
 In reply to another query, the Minister said delay in flights is caused mainly due to their bunching in the peak morning and evening hours.
 Inadequate ground infrastructure at Delhi airport also contributes to flight delays, he said.
 The Minister clarified that the Delhi and Mumbai airports had not been privatised and they had only been given out on a joint venture for some years to modernise them.

In a bid to strengthen aircargo and helicopter operations in the country, the Government is considering to raise the FDI cap in these areas to 74 per cent when it comes out with a policy on the matter next year.
 Civil Aviation Minister Praful Patel said here since India’s potential in cargo was not matching with the present operations and, therefore required a massive thrust, such a move could be considered.
 ‘‘Government is deliberating on the matter .... while we have an overall FDI cap of 49 per cent in the aviation sector, we have to liberalise areas like aircargo, helicopters and sea-planes and the cap could reasonably put at 74 per cent’’, he told Parliament that he had said this at a cargo conference of the International Air Transport Association (IATA) here.
 Asked whether the FDI cap in passenger carriers would also be hiked, Patel said, ‘‘firstly, the internal needs will have to be met. Foreign airlines will only connect the big cities. They will not be interested in the hinterland’’.
 Even the potential of 49 per cent FDI in the aviation sector was not being fully met at present, he said, indicating that there was no possibility of a review of this decision at the moment.
 In reply to a question whether the government would allow foreign aircargo companies to operate in India, Patel said, ‘‘We will consider it. But we will consider it in the policy’’. 
Patel told Parliament that earlier addressing the IATA cargo conference, he had said there that Air India and the Indian would go into the cargo business in a big way, with the latter planning to convert five ageing Boeings in the fleet of its subsidiary Alliance Air into freighters.
 ‘‘These aircraft will be based in Nagpur’’, which is being developed as the national cargo hub in the country, he said.
 On development of airport infrastructure, Patel said he was planning to convene a meeting of Chief Ministers of all states to chart out development plans for about 400 airports and airstrips spread across the country.
 Observing that modernisation work at 35 non-metro airports were already underway or about to start, he said these would be ready by 2010.
 ‘‘Once these 41 airports (including six major metro airports) were completely upgraded, there will be a great improvement in air traffic, including cargo operations’’, he said, stressing that the establishment of intra-India connectivity was the most important task for the government.
 He said India was in a ‘‘vantage position’’ as it was on the East-West corridor and therefore could attract a lot of cargo business from abroad. ‘‘We are working with the customs and other agencies’’ to resolve problems relating to cargo operations.
 ‘‘The way global retail players are coming into India, aircargo operations, besides rail and road, will play a major role’’, Patel said, adding lot of activities to enhance the entire aircargo infrastructure had been planned and were being worked upon.

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Maintenance of AI, IA amongst the best in the world: Patel

New Delhi, Dec 12 (UNI)

Asserting that the maintenance of national carriers Air India and Indian airlines was among the best in the world, Government today said airworthiness of aircraft is properly checked before deploying them for commercial use.

 ‘‘The maintenance of standard of Air India and Indian Airlines is second to none anywhere in the world,’’ Civil Aviation Minister Praful Patel said during the Question Hour in the Rajya Sabha.

 He assured that the old age of aircraft had nothing to do with their airworthiness and said during 2007 the Air India would get more new aircraft for which an order had already been placed.

 Patel said it was not true that private airlines were always preferred ahead of Indian airlines by travellers including members of Parliament.

 He said the government followed the guidelines of preferring aircraft under 15 years of age for leasing them for airlines. PTI TVS

 In reply to the main question, the Minister said during the last 10 months, there were 5 incidents involving Air India Aircraft associated with defects like tyre burst, malfunctioning of weather radar or aircraft engine at Mumbai and Delhi. He said Air India airplanes are maintained under the continued airworthiness programme and all the tasks are carried out as required by Original Equipment Manufacturers (OEMs) such as Boeing, Airbus, General Electric and Pratt and Whitney.

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AI finalising terms for absorbing IAF, navy pilots

New Delhi, Dec 15. (PTI): Air India is in the process of finalising the terms and condition with the Indian Air Force and Navy for absorption of its pilots in the international flag carrier of the country, the Lok Sabha was informed on Thursday.

Replying to written questions, Minister of Civil Aviation Praful Patel said Air India is in the process of concluding the terms and conditions for the pilots from IAF and Navy leading to permanent absorption in Air India.

Anti-Hijacking: The Government is preparing a manual, which would provide for a detailed response mechanism and procedures to be adopted at all levels in the case of crisis, he said in reply to another question.

Patel said, the manual was being finalised and would be forwarded to all concerned for strict compliance.