Edits, Columns & Analysis - January 2008

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Indian civil aviation: Striking the Centre-State balance
TravelBizMonitor
Jan 28, 2008
The first ever National Conference on Civil Aviation, held recently in New Delhi, focused on the need to develop an active partnership between the Centre and States. Arti Saggi analyses the Centre-State equation in the Indian civil aviation scenario.
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Take off on a safe note
R. Eswarraj
Business Line
Jan 28, 2007
After the 9/11 attack, the Department of Homeland Security offered a $3.5 million grant to improve the security at Houston Airport. Honeywell Security Systems, a $2.5-billion enterprise, has provided the integrated security solution for Houston Airport.
Its Head (sales) for the Asia-Pacific region, Deepak Thakur, claims that Honeywell Security is the only player with security solutions for the entire spectrum — ‘be it efficiency, energy, fire protection, any security product — it is all integrated’.
Excerpts from an interview to eWorld >>>

ATF as declared good to boost travel
Economic Times
Jan 25, 2008
Civil Aviation minister Praful Patel’s call to state governments to lower duties on aviation turbine fuel (ATF) at the first National Civil Aviation Conference appears to have had no impact. The central government should step in and classify ATF as a declared good (which attracts a uniform sales tax of 4%) to ensure that the aviation boom does not falter.
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The lure of foreign skies
Viveat Susan Pinto
Financial Express
Jan 24, 2008
Flying international seems to be the route to more profits. Quite aptly, players like Jet and Kingfisher are increasing their focus on international operations. The numbers say it all. At the moment, the Indian skies have 355 aircraft circling around. These are the total number of planes deployed by domestic carriers. The number is set to go up to about 500-550 by the end of 2010. At the rate at which domestic traffic is growing, however, supply seems to be more than demand.
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In aviation, low cost is still the name of the game
Nirmal John
DNA Money
Sify
Jan 22, 2008
Fly for Rs 500, screams ads from several airlines. And you thought consolidation in the industry was supposed to lead to "rational pricing". While the Rs 500 figure may only be a fraction of what actually goes into the airline coffers, it does signify a marketing platform that airlines are being forced to take to appear affordable to the price-sensitive traveller.
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Emirates walking away from SriLankan
Nicholas Ionides
Airline Business
Flight International
Jan 22, 2008
A decade after Emirates bought into Sri Lanka's national airline and took over its management, the Middle East carrier is walking away and seeking a buyer for its 43.6% stake. Emirates had for months been in talks with the Sri Lankan government on a possible extension of its management contract for SriLankan Airlines after its 31 March expiry, but negotiations did not go well. Talks fell apart in December after the Emirates-appointed chief executive of SriLankan, Peter Hill, had his work permit revoked following a dispute with Sri Lanka's president.
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Need more transparency in air fare pricing
Economic Times
Jan 18, 2007
The reported decision by airlines not to price tickets below Rs 500 appears to be a clear case of cartelisation. The competition commission would do well to look into the price arrangement, if any, agreed to among India’s airlines. Undoubtedly, air fares had plummeted to unsustainable levels and many players would have found it difficult to survive had predatory pricing continued for long. The aviation industry’s losses are expected to widen to about Rs 2,500 crore in the current year from over Rs 2,200 crore in 2006-07.
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Is the aviation ministry out to throttle the AAI?
R N Bhaskar
Daily News & Analysis
Jan 17, 2008
The aviation industry is flying, literally. As per a ministry note, the growth in domestic passenger air traffic in the first nine months of 2007 was an impressive 36.74% year-on-year.
But, industry watchers see storm clouds ahead. They believe the ministry’s policies could see more turmoil in respect of smaller airports.
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'India is a key market for Emirates'
Shashank Shekhar
Times of India
Jan 15, 2007
New Delhi: Sheikh Ahmed bin Saeed Al-Maktoum is chairman and CEO of Emirates Airline and Group and also the president of the department of civil aviation, which oversees all the activities of the Dubai International Airport. Besides, he is also leading the units which look after tourism in and around Dubai.
Sheikh Ahmed is a fellow of the Royal Aeronautical Society in UK and the recipient of France's highest award - Commander of the Legion of Honour. He shared his views on many issues regarding the aviation industry in an e-mail interview with TOI.
Excerpts >>>

Wanted: a charter for air passengers
Financial Express
Robey Lal
Jan 14, 2008
The number of air passengers in India has been growing at unprecedented rates during the last three or four years. Annual growth rates of 46% have been noted even on major routes, and there is little indication of a slowdown. Annual growth rates of 20-25% for domestic traffic over the next five years are not unrealistic. These impressive figures are being achieved through dynamic, market-driven business initiatives and new regulations.
Thanks to them, new airlines are starting up and old ones merging. Airports are being expanded or new ones built, some with government funding and others with private money. And now, even the possibility of an independent air navigation system, albeit under government control, is being examined. Ironically, though, among all these new laws, there is nothing that will ensure protection to air passengers from the predations of service providers and ensuring them a modicum of service quality.
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Jam in the Air
Times of India
Jan 12, 2008
Government must focus on providing infrastructure. Governments across the world are increasingly leaving the conduct of business to private entrepreneurs and restricting their own role to merely facilitating their growth.
However, Indian authorities seem to be perpetually in a regressive mode. A case in point is the recent episode when nearly 50 passengers with confirmed tickets of the Air India Mumbai-London-Chicago flight were offloaded earlier this week apparently because of non-availability of seats.
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Busy Year Ahead for Global Air Industry
David Jonas
The Transnational, NY
Jan 10, 2008
Developments in the global aviation industry during 2008 undoubtedly will impact how many companies think about international travel. While the challenges of fuel costs, climate change and congested infrastructure force airlines to adapt their operations, healthy demand for long-haul trips will keep suppliers focused on serving business customers. New services, partnerships and liberalized regulatory frameworks should help them do so.One of the more significant developments for global business travel will occur in March, when a new aviation agreement between the United States and Europe officially comes into force.
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Mumbai airport: What will it be like
Shyamal Majumdar
Busness Standard
Rediff
Jan 03, 2007
G V Sanjay Reddy, 45, wears many hats. He is the vice hairman of GVK, one of India's largest infrastructure developers; MD of the Mumbai International Airport Pvt Ltd, which operates India's busiest airport; MD of GVK Jaipur Expressway, which operates the six-lane toll road project on the Golden Quadrilateral; and CEO of GVK Biosciences.
He is also on the board of the Hyderabad-based TajGVK. It's obviously helped that he is the only son of Group Chairman G V Krishna Reddy.
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Travel industry’s back-office boys
Jacob Cherian
Economic Times
Jan 03, 2007
Air travel has become much more popular in the country in the past four years. With rising incomes, many middle-class passengers who were taking the train earlier have started flying. And the expansion of civil aviation, experts say, has only begun in India. Little wonder, then, that business opportunities are cropping up by the dozen in this sector. QuadLabs, started by an entrepreneur in his mid-20s, is one such entrant catering to the software side of air travel management business.
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