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Discuss AIR INDIA-all news related to this company within the Company Profiles & News !! forums, part of the Mirror View - Ebooks Links & Miscellenous Reading Material category; A-I’s fleet acquisition plan sails past pre-PIB scrutiny TIMES NEWS NETWORK[ THURSDAY, SEPTEMBER 01, 2005 12:52:33 AM] DELHI: The Air-India ...



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AIR INDIA-all news related to this company - September 5th, 2005

A-I’s fleet acquisition plan sails past pre-PIB scrutiny

DELHI: The Air-India Maharajah’s plan to acquire 50 wide-bodied aircraft at an approximate cost of over Rs 20,000 crore moved a step forward on Wednesday. Representatives of various government departments, including the civil aviation ministry, the finance ministry and the Planning Commission, vetted the proposal at a pre-Public Investment Board (PIB) meeting here and decided to forward it to the PIB. It is understood that the PIB will meet at the end of September to consider the mega fleet purchase plan.
Officials of the ministries of social justice and environment & forests were also part of the pre-PIB consultations, highly-placed government sources said. Once the PIB clears the proposal, it will be submitted for consideration by the Cabinet Committee on Economic Affairs (CCEA).
Air-India’s plan to purchase 18 B737 aircraft is being sent for PIB consideration by the middle of September, sources said. An A-I team briefed the meeting on the purchase of wide-bodied aircraft at the pre-PIB meeting and the additional secretary & financial advisor at the civil aviation ministry provided inputs, they added. It was felt that some clarifications need to be provided by A-I and the relevant information can be submitted to the PIB.
The government has set up a three-member Oversight Committee, headed by former CAG, CG Somiah, to go through AI’s fleet acquisition process. Indian Airlines’ plan to purchase 43 aircraft at a cost of nearly Rs 10,000 crore has already been vetted by this committee.

A-I’s fleet purchase plan hits runway, investment panel to meet today

NEW DELHI: Even as Prime Minister Manmohan Singh is slated to visit the US in September, the government has initiated steps to speed up purchase of 68 Boeing aircraft by Air-India (A-I) at a cost of over Rs 25,000 crore.
The pre-Projects Investment Board (PIB) meeting for considering purchase of 50 wide-bodied aircraft for A-I has been scheduled for Wednesday. The PIB will meet on September 30 to consider this mega purchase which was subject to criticism by Boeing’s arch rival Airbus. The US government has been urging the Indian government to clear the A-I purchases soon so that Boeing can get an edge in the global race with Airbus.
Highly-placed government sources said the PIB would meet on September 14 to consider purchase of 18 Boeing B737 aircraft by A-I at a cost of around Rs 3,600 crore. The pre-PIB meeting for this project has already been completed. Compared to the long delays that Indian Airlines’ (IA) fleet acquisition plan was subject to during the past five years, the A-I projects are set to move at a brisk pace.
After the PIB clears the A-I projects, they would be referred to the Cabinet Committee on Economic Affairs (CCEA). Sources said the government plans to bring the projects before the CCEA in October.
In the case of IA, the CCEA has called for setting up of an empowered group of ministers (eGOM) to negotiate with Airbus to bring down the price. IA plans to buy 43 Airbus planes at a cost of nearly Rs 10,000 crore.
Civil aviation minister Praful Patel plans to process both fleet acquisition projects by the end of this year, so that the two airlines can launch initial public offers by the end of ’05-06. The IA project would be considered by the eGOM soon and a final decision is expected by the time the prime minister visits France, the sources said.

A-I set to pitch for MRO, training unit with Boeing

BANGALORE: Air-India is clearly becoming more business-savvy. It plans to leverage India’s counter-trade norms during its $5-7-bn aircraft acquisition to secure support from Boeing to set up an MRO (maintenance, repair, overhaul) and training facility in India for the growing aircraft population in the sub-continent.
The facility is likely to be branched across Delhi, Mumbai, Kochi and Bangalore/Hyderabad. Since an MRO spells big-ticket returns, business for ancillary industries and job opportunities for engineers, the project is being eyed with avid interest in aviation circles. The Kochi unit may deal with the single-aisle, new generation Boeing 737-800/900 planes, while other centres may undertake wide-bodied aircraft repair and maintenance.
V Thulasidas, MD, Air-India, told ET that it will seek Boeing’s assistance to set up a certified MRO in the near future. Presently, most of the advanced checks are done overseas for Indian aircraft. The present consolidated fleet size is around 200 planes. The growth in aircraft fleet of most Asian carriers, and arrival of new players has ensured that an MRO will do great business in this part of the globe. The facilities run in places like Singapore are said to be in constant demand, with aircraft queuing up for slots.
With Indian carriers projected to inject another 200-300 planes in the next 5-10 years, there is a high likelihood of more MRO facilities coming up. In fact, Boeing and Airbus have indicated that they are mulling MRO projects in India.
It’s still not clear what shape and size these projects will take and who will be the Indian partners. Training facilities for pilots and engineers are also seen to be inadequate in the face of the sudden surge in demand.
Boeing’s senior vice-president Dinesh Keskar had earlier mentioned that an MRO programme can call for an investment of Rs 500 crore and open employment opportunities for some 1,000-1,500 engineers, technicians and personnel in different departments.

IA, A-I may join wings to take on the competition

NEW DELHI: The civil aviation ministry has initiated an exercise to bring public sector carriers Air-India and Indian Airlines together to create a powerhouse that could withstand growing competition. A number of options including merger, putting both airlines under a holding company and simple operational synergy are being discussed now. If both airlines are merged into a single entity, the combined turnover will be in the range of Rs 10,000 crore, while the fleet size will stand at 100 aircraft, a sizeable chunk of which is leased.
Senior officials of A-I and IA met with civil aviation ministry representatives at Rajiv Gandhi Bhavan on Wednesday and followed it up with another meeting at the IA headquarters on Thursday. The two carriers have been given time till the middle of September to work out an integrated synergy plan and submit it to the civil aviation ministry. The move comes at a time when both airlines are looking at IPOs and purchase of aircraft in significant quantum. A-I’s turnover is in excess of Rs 6,000 crore, while IA’s turnover is over Rs 4,300 crore.
In case the government opts for a holding company, then A-I will operate as the international division, while IA will be the domestic division. This model is similar to the Airports Authority of India (AAI) where the international airports division and the national airports division were merged to form a single entity.
A-I now has a fleet of 39 aircraft and IA operates 63 aircraft. Since A-I operates on long-haul routes like the US and Europe, while IA’s core strength is its nationwide connectivity, the civil aviation ministry feels that operational synergy will be a major benefit. On the flip side, the government has to balance the operations of both carriers in the South-East Asian and Gulf markets. These two markets are considered attractive for both carriers and A-I has launched a low-cost subsidiary, Air-India Express, especially for the Gulf and South-East Asia.
The other area that will require attention is the huge staff strength of A-I and IA. Despite reduction of the retirement age, IA has around 18,500 employees, while A-I’s staff strength is around 15,000. Without downsizing, the merged entity will be enormous and pose tough HR challenges. The other problem area is the low equity base of the two airlines which needs to be rectified.

IA, A-I want extension of withholding tax exemption

MUMBAI: THE seemingly endless delays in aircraft acquisition and leasing for national carriers Air-India and Indian Airlines may create another liability for them. In the Budget this year, the finance ministry had granted an exemption on withholding tax for aircraft lease until September 30 ’05.
This was based on the premise that the leasing process would be complete by then. But the ground reality is that the leasing is not yet complete and airlines are now scrambling to seek an extension. Without the exemption, leasing would no longer be a viable proposition for the airlines.
The tax rate for aircraft lease from foreign companies is currently 40% plus applicable surcharge. “If the lessor insists on a provision for remittance free of withholding taxes, the cost of leasing could go up by 67%, making leasing unviable,” Air-India sources said.
Air-India has plans to lease about nine more aircraft in the next one year for its own operations and about four for Air-India Express. In addition, the airline has already advertised for three aircraft that it plans to lease for the Haj flights. In the absence of government clearance to buy aircraft, both Air-India and Indian Airlines are leasing aircraft to add capacity in the short term.
Both have approached the finance ministry for an extension of the exemption for withholding tax under Section 10(15) (A) in order to allow the national carriers to continue with their leasing plan. Air-India has plans for leasing capacity both in ’06 and up to the winter of ’06/07. “Leasing would be a loss-making proposition if Section 10(15) (A) is withdrawn,’’ airline sources said.
Indian Airlines is also leasing capacity for medium capacity short/long-range aircraft. Commenting on the quantum of the impact, airline sources said it will depend on the residential status of the lessor and the provisions of the double taxation avoidance agreement from where the lessor is resident.

A-I appoints PR agency for corporate image

PTI[ SATURDAY, AUGUST 20, 2005 01:53:57 AM]
MUMBAI: For the first time, Air-India (A-I) has appointed a public relations agency to project the airline's corporate image and handle media relations.
Perfect Relations Ltd has been appointed as the PR agency and it will be responsible for image audit, media relations, communication counsel and advice on regular basis to develop a communication channel to consumers, employees, trade and other partners, A-I said in a statement here on Friday.
The agency has been appointed to project the correct corporate image of the airline and would enable the company to respond faster to local issues and ensure coordinated and synergised approach to various local issues, it added.
According to sources, the contract is for a one year period.

A-I, IA short of 158 pilots

NEW DELHI: With the Indian aviation industry facing a serious shortage of trained manpower, the government has decided to enhance the capacity of the Indira Gandhi Rashtriya Udan Akademi (IGRUA) in Rae Bareli in UP. Training facilities at the institution are also being upgraded to train more pilots, civil aviation minister Praful Patel said in Parliament on Wednesday.
An additional flying training institute is being set up by the government at Gondia in Maharashtra, he said while replying to a question in Rajya Sabha.
The total flying requirement for issue of commercial pilots license has also been reduced from 250 to 200 hours. Age of pilots, who can operate commercial flights, has been increased from 60 to 61 years.
Patel also said that flights in the north-eastern region are being affected due to shortage of pilots in Alliance Air. At present, Air-India (including its subsidiary Air-India Express) has a shortage of 118 pilots, whereas Alliance Air, the subsidiary of Indian Airlines, has a shortage of 40 pilots. Both Air-India and Alliance Air are in the process of recruiting additional pilots to fill up the vacancies.

Air-India has recruited 27 foreign pilots on contract during the last three years to overcome the manpower shortage. Foreign pilots are inducted purely on contract basis for a period of one year.
The Director General of Civil Aviation (DGCA) grants permission for opening of flying training academies in the country, if they meet the requirements as laid in the Civil Aviation Requirements. At present, there are 39 Flying Training Institutes (FTI) of which 27 are covered under the subsidy scheme of the government and 11 are privately owned.


• After 20 yrs Air India flies to Canada
• Air-India hits back at Airbus
• A-I, IA to continue with aircraft buys, says Patel
• A-I's Boeing deal comes under CVC, CAG scanner
• Boeing says it's okay with probe
• Airbus flies off the handle, calls for probe into Boeing deal
• Airbus to IA: Take it or we'll sell it
• Plane truths: IA, A-I to acquire 93 new aircraft
• Foreign airlines follow A-I on agent commissions
• Ministry asks Air-India to select insurer via tender
• A-I to add three A310s to south-east fleet
• Esops may takeoff in Air India, IA
• Express Delivery: Boeing 737-800 to join A-I fleet
• A-I Express to take off on April 28
• A-I eyes larger slice, seeks tie-ups
• Cargo service: AI issues tenders
• No impact of Jet, Saharaentry, says Air-India
• AI to decide on aircraft purchase in Jan
• AI to take 3 Boeing 777s on lease
• A-I to double capacity, fly daily to US, China by '06
• Maharajah gets ready to roar again on India-UK route

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Re: AIR INDIA-all news related to this company
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Re: AIR INDIA-all news related to this company - October 15th, 2013

good work man! i couldnt find many of the information elsewhere! :\
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