Tag Archives: Ministry of Civil Aviation

Hardeep Singh Puri, Minister of State, Ministry of Civil Aviation (MoCA), has said that MoCA will be issuing expression of interest for Air India disinvestment within next few weeks. Talking about Air India disinvestment, he revealed, “Air India is a national asset and the Maharaja is a great brand. The problem with Air India is that it has an unsustainable debt. We tried two years ago for the same, which proved to be less successful, and we have learnt from the same. It is our endeavour now that we will be issuing an expression of interest in the coming few weeks, hopefully sooner or later, and that the process of privatisation will then follow. We should ensure that we find a buyer and we have to deal with an interim process,” he said.

Hardeep Singh Puri, Minister of State (I/C) for Civil Aviation has launched the Biometric enabled Centralised Access Control System (CACS) and e-BCAS Project Training Module. The two projects launched are important milestones to enhance security and ease of doing business at airports. Covering 43 Airports of AAI and 5 Joint Venture airports at present, the CACS project is aimed to digitise the employee movement process at the airports. The e-BCAS Project: Training Module is aimed at helping more than 1.5 lac employees of various stakeholders by migrating from manual process of training to digital platform. Puri said “CACS project shall facilitate the ease of processing, enhanced security and prevent unauthorized entry into airport, alert authorities to an attempted intrusion or other irregularities for an immediate response; overall not only leading to ease of doing business, but also an enhanced security system.” CACS project is bound to assist around 2 Lakhs employees of various stakeholders who move in & out of the airport on a daily basis, he added.

The government has said that it has invested over Rs 300 crore for developing airport infrastructure till November this fiscal. In an official statement, the Ministry of Civil Aviation said that as many as 10 airports commenced operations in 2019, 335 routes have been awarded, covering 33 aerodromes during the year. According to the ministry, approximately 3.4 million passengers flew under the government’s regional connectivity scheme, Udan, till date, with 134 routes commencing operations between January and October. “Rs 304.49 crore has been spent on up-gradation of existing and new airports from April to November this year. “Also, 10 airports became operational till December 7 in 2019, of which four are underserved (Lilabari, Belgaum, Pantnagar and Durgapur) and the remaining ones unserved (Kullu, Kalaburgi, Kannar, Dimapur, Hindon and Pithoragarh),” the release said.

Air travel will become a bit costlier as the Ministry of Civil Aviation (MoCA) has decided to increase the aviation security fee (ASF) from Rs 130 to Rs 150 for each Indian passenger from July 1 onwards. For international passengers, the ASF will be increased from 3.25 USD to 4.85 USD from next month. “The ASF for domestic passengers will be levied at the rate of Rs 150 per embarking passenger,” said an Ministry of Civil Aviation order. “The ASF for international passengers will be levied at the rate of USD 4.85 or equivalent Indian rupees per embarking passenger,” the order added. The ASF will be replacing the PSF (SC), which stands of passenger service fee (security component). “The above rates of the ASF will be applicable with effect from 00.01 hrs of 01.07.2019 and will replace the PSF (SC) which was being charged so far at the rate of Rs 130 per embarking passenger for tickets issued against Indian Rupees and USD 3.25 per embarking passenger for tickets issued against foreign currency,” the order stated.

Domestic passengers will account for around 63 per cent of the total growth by 2037, or 228 million additional passengers, as per a recent ‘Project Rupee Raftaar’ report by the Ministry of Civil Aviation. Foreign passengers will contribute less to overall growth, representing 37 per cent of the total market growth, equal to 131 million additional passengers. Of the 6.1 per cent average annual growth in Indian air passenger demand over the next 20 years, improvements in living standards (via higher incomes) are expected to contribute the major share, at 5.1 percentage points. Favourable population and demographic factors are forecast to contribute 0.6 percentage points to annual growth. Other factors, mainly future technological gains, will contribute 0.8 percentage points per year.

Narrowbodies account for ¾ of the total current fleet, with widebodies contributing a further 10 per cent, as per a recent ‘Project Rupee Raftaar’ report by the Ministry of Civil Aviation. The remainder consists primarily of turboprops and regional jet aircraft. Reflecting the relative size of the domestic and international markets, the composition of the current inservice fleet is heavily tilted towards narrowbody aircraft. India, which has the third-largest aircraft order book (including wide-body and narrow-body aircraft) after the US and China, now has more narrow-body orders than China, CAPA India said in one of its reports.

Out of the 1123 aircraft that are currently on order for India, a bulk of them are slated for delivery to IndiGo, according to a recent ‘Project Rupee Raftaar’ report by the Ministry of Civil Aviation. The numbers are evidence of the optimism and positive outlook for the sector, providing some insights as to the near-term evolution of the market. There are range of new and alternative investment and alliance or partnership structures emerging globally which add a new dimension to the industry, as airlines try to and new and innovative ways to expand their networks and their product offering. In some global markets, the changing industry structure is one of consolidation rather than expansion.

The Airports Authority of India (AAI) and Ministry of Civil Aviation (MoCA) have issued a notice inviting bids to operate as many as 30 routes under Round 3.1 of the UDAN regional connectivity scheme. AAI and MoCA decided to consider an additional bidding round under UDAN 3.0 to include priority/cancelled/crucial routes which have not been covered under UDAN Scheme so far. Routes available under round 3.1 includes routes connecting unserved, underserved airports and unserved routes connecting served airports. Bids have been invited for routes such as Guwahati-Tezpur, Guwahati-Passighat, Port Blair-Hutbay/Havelock/Neil Island, Raipur-Bilaspur, Patna-Hazaribagh, Hazaribagh-Kolkata, Hissar-Chandigarh, Hissar-Jammu, Kargil-Leh/Jammu, Srinagar-Thoise and Rewa-Jhansi/Bhopal among many other routes. For the first time, the centre has also bid out routes for Lakshadweep islands including Agatti-Mincoy and Agatti-Kavaratti. According to the notice, airlines opting to bid for these new routes shall not receive any “exclusivity of operation” right as is given to airlines under previous UDAN routes coupled with any additional concession apart from funds through viable gap funding. The government has invited bids till February 22, 2019 after which it shall award the routes to airlines on February 27, 2019. It has set a deadline of six months for the airlines to commence operations on such routes from the date of award to the airline. Centre, on January 25, released 235 routes that were awarded under third phase of the scheme. Certain routes, however, were yet to be finalised in consultation with state governments and were withheld by the ministry  

The growth of the LCC market for India has been significant, according to a recent ‘Project Rupee Raftaar’ report by the Ministry of Civil Aviation. Around 55 per cent of all seats in the market are offered by low cost carriers (LCC). Focusing on the domestic market alone, the LCC share of total seats is almost 70 per cent. While the share of LCC seats offered on India’s international routes is much smaller, at just under 25 per cent, this share has risen from essentially zero in 2004. Arguably, the emergence of LCCs has facilitated the democratization of air travel and fueled aviation growth, albeit in various ways across different markets. In emerging markets, LCCs have broadened the market and allowed more people the opportunity to fly for the very first time. In more mature markets, LCCs have deepened the market allowing people to fly more often.

The Ministry of Civil Aviation’s Ude Desh ka Aam Nagrik (UDAN) scheme is set to fly international. The results for UDAN 3 were announced recently, and Suresh Prabhu revealed that for the first time, international routes have been introduced under UDAN by launching flights from Guwahati to Bangkok and Dhaka. Both these routes will be served by SpiceJet. Prabhu said, “It’s going to be a major game changer as these connections would bring North East closer to the rest of the world. As a result, there will be a tremendous scope for tourism and economic development in the region.” Rajiv Nayan Choubey, Secretary, Civil Aviation, revealed, “The state government of Assam had asked us to conduct bids for connecting Guwahati to the neighbouring countries and we are happy to announce that Guwahati is now going to be connected with Bangkok and Dhaka, which are the international UDAN routes which have been awarded.” It was revealed that SpiceJet has taken a very competitive underwriting of the seats. The per annum VGF would be Rs 11 crore, which would be borne by the state. Having set the service frequency at seven-times-a-week, the government has given a flexible template of starting with thrice-a-week service, which will then be increased and finalised within six months.